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2018
LEGISLATIVE ASSEMBLY OF
THE
NORTHERN TERRITORY
ATTORNEY-GENERAL AND MINISTER FOR JUSTICE
Monetary Units Bill 2018
SERIAL NO. 51
EXPLANATORY STATEMENT
GENERAL OUTLINE
The Monetary Units Bill 2018 provides a mechanism for ensuring that monetary figures in legislation that are not fines (covered by the Penalty Units Act) or that are not fees or charges (covered by the Revenue Units Act) maintain their real value over time.
The Bill provides:
(a) for a definition of the term “monetary unit”;
(b) that value of a monetary unit will be $1 from the time of the commencement of the legislation through to 30 June 2019 (this is the effect of clause 6 having regard to the CPI for Darwin for 2017 and the rounding down calculation required by clause 6(2));
(c) that from 1 July 2019, the value will be adjusted in accordance with any increase in the CPI for Darwin for the previous calendar year (ie 2018);
(d) that the references to “financial unit” in the Local Court (Criminal Procedure) Regulations will change to “monetary unit”;
(e) for a definition of “monetary unit” to be included in the Interpretation Act;
(f) that the Chief Executive Officer of the government agency responsible for the administration of the Act will publish on an annual basis the current value of a monetary unit. Failure to publish does not affected what is the value of a monetary unit.
NOTES ON CLAUSES
Part 1 Preliminary matters
Clause 1. Short title
This is a formal clause, which provides for the citation
of the Bill. The Bill,
when passed, may be cited
as the Monetary Units Act.
Clause 2. Commencement
This is a formal clause that provides that the commencement of the Bill will occur on a day or days fixed by the Administrator by way of a notice published in the Gazette.
Clause 3. Definitions
This clause provides definitions of:
• CPI figure for Darwin
• monetary unit
• quarter
Part 2 Principal matters
Clause 4. Application
This clause provides that the Act will apply to legislation that expresses amounts of money in terms of “monetary units”.
Clause 5. Reference to monetary unit
This clause provides for the use of the term “monetary unit”. When a value is expressed in terms of monetary units the value in dollar terms will be the value of a monetary unit multiplied by the number of monetary units.
Clause 6. Calculation of monetary unit
This clause provides the formula of the calculation of a monetary unit.
For each financial year (1 July - 30 June) the value of a monetary unit will be determined as follows:
• determine the average of the CPI figures for
Darwin for each of the four quarters of the calendar year immediately preceding
the financial year for which the calculation is being made. Thus, for the
financial year
1 July 2019-30 June 2020, the
relevant calendar year will be 2018 (this is referred to as “C” in
the formula);
• identify the CPI figures for Darwin the calendar year 2016. This is “D” in the formula in the Bill;
• divide “C” by “D” and multiply by $1;
• if necessary round down to two decimal places.
The year 2016 is the base year because it is the year in the formula in the Local Court (Criminal Procedure) Regulations. On the commencement of this Act that formula will be replaced by the formula in this Act. Using the same base year means that the calculations remain constant.
Clause 7. Application of monetary unit
This clause provides that any re-valuation of a monetary unit takes place on 1 July of each year and that that value then applies only in respect of matters that occur during that year.
The clause also applies so that any change of value only applies for a financial year if the value increases. That is, if there is a negative CPI, the value will remain the same as for the previous financial year.
Clause 8. Notifying new amount of monetary unit
This clause imposes a duty on the Chief Executive Officer of the agency responsible for the administration of the Act to publish any new amount (if the amount has increased).
Failure to publish the amount does not affect what is the value. In other words, the value will also be calculated for any particular year in accordance with the formula. Anyone can do the calculation.
Part 3 Consequential amendments
Division 1 Interpretation Act
Clause 9. Act amended
This clause provides that Division 1 is making amendments to the Interpretation Act.
Clause 10. Section 17 amended (Definitions)
This clause amends section 18 of the Interpretation Act by including definition of “monetary unit”.
Division 2 Local Court (Criminal Procedure) Regulations
Clause 11. Regulations amended
This clause provides that Division 2 amends the Local Court (Criminal Procedure) Regulations.
Clause 12. Regulation 3 amended (Definitions)
This clause replaces the definition of “financial unit” with a references to the definition of “monetary unit” in the Monetary Units Act.
Clause 13. Regulation 4 repealed (Financial unit)
This clause repeals the formula for “financial unit “contained in the Local Court (Criminal Procedure) Regulations.
Clause 14. Regulation 5 amended (Limit on amount ordered for costs)
This clause replaces references in regulation 5 to “financial units” with references to “monetary units”.
Division 3 Repeal of Part
Clause 15. Repeal of Part
This is a standard clause for parts of legislation which consists entirely of amendments to other legislation. It provides that the Part ceases to have effect once it has performed its function of amending the other legislation.