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2016-2017
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
INDUSTRIAL CHEMICALS CHARGES (EXCISE) BILL 2017
EXPLANATORY MEMORANDUM
(Circulated by authority of the Assistant Minister for Health, the Hon Dr David
Gillespie MP)
INDUSTRIAL CHEMICALS CHARGES (EXCISE) BILL 2017
OUTLINE
The Industrial Chemicals Charges (Excise) Bill 2017 is part of an industrial chemicals
legislative reform package designed to make regulatory effort more proportionate to
risk, to promote safer innovation by encouraging the introduction of lower risk
chemicals, and to maintain protections for human health and the environment.
The other Bills in the reform package include the: Industrial Chemicals (Notification
and Assessment) Amendment Bill 2017; Industrial Chemicals Bill 2017; Industrial
Chemicals (Consequential Amendments and Transitional Provisions) Bill 2017;
Industrial Chemicals Charges (General) Bill 2017; and Industrial Chemicals Charges
(Customs) Bill 2017.
The Industrial Chemicals Charges (Excise) Bill 2017 has, as its main purpose,
measures that allow for the imposition of a charge (so far as that charge is a duty of
excise) in relation to registration of introducers of industrial chemicals in accordance
with the Industrial Chemicals Bill 2017.
The Industrial Chemicals Bill 2017 provides that:
an introducer must be registered on the Register of Industrial Chemical
Introducers (the Register) for a registration year before introducing an industrial
chemical during that year (with penalties for failure to meet this requirement)
a registration charge may be payable for each registration year. The Industrial
Chemicals Charges (Excise) Bill 2017 imposes the charge (so far as that charge is
a duty of excise) and enables regulations to describe the methods for working out
the annual registration charge applicable to each introducer of industrial
chemicals.
Financial Impact Statement
The Bill has no financial impact on the Commonwealth, as it remains Government
policy that the cost of the Commonwealth industrial chemicals scheme is fully
recovered from the regulated industry.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
INDUSTRIAL CHEMICALS CHARGES (EXCISE) BILL 2017
This Bill is compatible with the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of the Bill
The Industrial Chemicals Charges (Excise) Bill 2017 is one of three Bills enabling the
Commonwealth to collect an annual charge (a registration charge) on person's
introducing chemicals into Australia (by import or manufacture) in accordance with
the Industrial Chemicals Bill 2017. The other two Bills are the Industrial Chemicals
Charges (General) Bill 2017 and the Industrial Chemicals Charges (Customs) Bill
2017.
It is proposed that rules made under the Industrial Chemicals Charges (Excise) Bill
2017 will base the amount of the registration charge on the value of industrial
chemicals introduced by the person in a registration year (which is defined in the
Industrial Chemicals Bill 2017 as commencing on 1 September of each year).
Imposition of the charge is the main way that the costs of the regulatory scheme for
industrial chemicals will be recovered from the regulated industry.
Human rights implications
The Bill in isolation does not engage any of the applicable rights or freedoms. It
enables the imposition of a charge in accordance with the Industrial Chemicals Bill
2017.
The Bill provides for the imposition of an annual registration charge on a person
introducing chemicals under the Industrial Chemicals Bill 2017. It also provides for
the rate of a charge to be prescribed in the regulations. This Bill is necessary to give
effect to the Government's reforms to the regulation of industrial chemicals. The
principal reforms are set out in the Industrial Chemicals Bill 2017. A Statement of
Compatibility with Human Rights in relation to the reforms is attached to the
Explanatory Memorandum for that Bill.
Conclusion
This Bill is compatible with human rights because it promotes the protection of the
human right to health.
The Hon Dr David Gillespie MP, Assistant Minister for Health
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INDUSTRIAL CHEMICALS CHARGES (EXCISE) BILL 2017
NOTES ON CLAUSES
Clause 1 - Short title
The short title of the Act is the Industrial Chemicals Charges (Excise) Act 2017 (the
Act).
Clause 2 - Commencement
Clauses 1 and 2 of the Bill will commence the day the Act receives the Royal Assent
and all other clauses in the Bill commence on the later of:
the start of the day after the Act receives the Royal Assent
immediately after the commencement of section 3 of the Industrial Chemicals Act
2017.
However, the provisions do not commence at all if that section does not commence.
Clause 3 - Extension to external Territories
The Bill extends to every external Territory of Australia. This means that the Act will
extend to: Ashmore and Cartier Islands; Christmas Island; the Cocos (Keeling)
Islands; the Coral Sea Islands; the Australian Antarctic Territory; the Territory of the
Heard and McDonald Islands and Norfolk Island.
Clause 4 - Act binds the Crown
The Bill binds the executive governments in each of the States, and the Territories.
The Bill does not bind the Commonwealth. This means that the Commonwealth
cannot be prosecuted for an offence, be subject to a civil penalty, or be given an
infringement notice under the Act.
Clause 5 - Definitions
Definitions of key terms used in the Bill are provided. In summary, the terms
industrial chemical, introduce, and registration year, have the same meaning as in
the Industrial Chemicals Act 2017.
Two new definitions that are included for the purposes of this Bill are:
amount, which is defined to include a nil amount. This allows for situations where
the charge may be $0 for introducers of certain types of chemicals or if the value
of the chemicals introduced is below a certain threshold (or a combination of these
matters)
property of any kind belonging to a State which has the same meaning as section
114 of the Constitution. Section 114 provides, amongst other things, that the
Commonwealth shall not impose any tax on property of any kind belonging to a
State.
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Clause 6 - Imposition of charge
A registration charge may be imposed in relation to the registration of a person under
the Industrial Chemicals Act 2017.
That Act stipulates that all introducers of industrial chemicals (other than introducers
of excluded introductions defined in section 17 of the Industrial Chemicals Act 2017)
are liable to pay a registration charge.
The registration charge is paid when a person applies for registration for a year. The
registration year commences on 1 September of each year.
A charge is only imposed so far as that charge is a duty of excise within the meaning
of section 55 of the Constitution.
If the charge is characterised as a duty of customs, it will be imposed under the
Industrial Chemicals Charges (Customs) Act 2017. If it is characterised as neither a
duty of excise nor a duty of customs it will be imposed under the Industrial Chemicals
Charges (General) Act 2017. Three separate Acts are required because section 55 of
the Constitution requires that matters of taxation, excise and customs be dealt with in
separate Acts.
Clause 7 - Amount of charge
The amount of the registration charge is the amount prescribed in the regulations
made under the Act or worked out in accordance with a method described in the
regulations.
It is anticipated that the amount of the charge will be determined having regard to the
value of industrial chemicals introduced by the introducer in a registration year. Prior
to the introduction of any regulations prescribing the charge, the proposed approach
will be documented in a cost recovery implementation statement (consistent with the
Australian Government Cost Recovery Guidelines) and subject to public consultation.
Clause 8 - Act does not impose tax on property of a State
The Bill does not impose a tax on property of any kind belonging to a State. This
provision ensures the Act will not contravene section 114 of the Constitution, which
prohibits the Commonwealth imposing any tax on the property of any kind belonging
to a State.
Clause 9 - Regulations
The Governor-General has regulation-making powers for prescribing matters that are
required or permitted for the purposes of the Act or that are necessary or convenient
for carrying out or giving effect to the Act.
It is proposed that the regulations will, for example, set out the rate of (or method for
working out) the registration charge.
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