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2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
IMPORTED FOOD CHARGES (IMPOSITION--GENERAL) BILL 2015
IMPORTED FOOD CHARGES (IMPOSITION--CUSTOMS) BILL 2015
IMPORTED FOOD CHARGES (IMPOSITION--EXCISE) BILL 2015
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Agriculture, the Hon. Barnaby Joyce MP)
IMPORTED FOOD CHARGES (IMPOSITION--GENERAL) BILL 2015
IMPORTED FOOD CHARGES (IMPOSITION--CUSTOMS) BILL 2015
IMPORTED FOOD CHARGES (IMPOSITION--EXCISE) BILL 2015
General Outline
The Imported Food Charges (Imposition--General) Bill 2015, the Imported Food
(Imposition--Excise) Bill 2015 and the Imported Food (Imposition--Customs) Bill
2015 (the imposition bills) align Australia's system for the management of imported
food with an efficient and effective cost recovery model which is consistent with the
Australian Government Cost Recovery Guidelines. Authority to collect charges
imposed under the imposition bills is provided separately by the Imported Food
Control (Collection) Bill 2015.
The importation of food is managed under the Imported Food Control Act 1992 (the
Imported Food Control Act) and related delegated legislation. The Imported Food
Control Act provides for the management of food entering Australia ensuring the
compliance of food imported with Australian food standards and the requirements of
public health and safety. The volume of food imports continues to grow, as does the
range of imported foods and the complexity of the supply chains used by Australian
food importers. These and many other factors all contribute to the complexity of
managing the standards of imported food.
Monitoring compliance with the arrangements under the Imported Food Control Act
comes at a cost. The Australian Government Cost Recovery Guidelines state that
agencies should set charges to recover some or all the costs of activities that they
provide. These charges should reflect the costs of providing the activity and should
generally be imposed as a fee or, where efficient, as a levy.
The Department of Agriculture (department) currently recovers the costs of its key
imported food services provided to a person (for example, inspection, analysis,
treatment and destruction) through fees imposed in the Imported Food Control
Regulation 1993, made under section 43 of the Imported Food Control Act.
The imposition bills are part of a legislative package that is designed purely as a cost
recovery mechanism. It will create an appropriate legal structure for the recovery of
costs through the imposition of charges, as a cost recovery levy, rather than a fee.
Levies will be used to recover costs of activities provided to a group of importers. The
legislation will sit alongside the existing cost recovery fees that apply to those
activities provided directly to a person who imports or deals with imported food.
Collectively, these cost recovery arrangements support fee and levy arrangements
which are efficient and equitable to persons that import or deal with imported food,
maintain downward pressure on costs and support the expansion and improvement of
the department's imported food activities.
1
Imported Food Charges (Imposition--General) Bill 2015
The Imported Food Charges (Imposition--General) Bill 2015 enables cost recovery
of corporate and supporting food safety activities provided to persons that import or
deal with imported food. These include the recovery of costs for activities such as
intelligence, surveillance and the development of audit and compliance standards for
third party arrangements where the charge is neither a duty of customs or excise
within the meaning of section 55 of the Constitution.
This Bill is enabling and mechanistic in character. It does not set the amount of the
charges and will not impose any financial impacts. The Bill authorises the imposition
of charges in relation to matters connected with the administration of the Imported
Food Control Act. These matters will be prescribed in the delegated legislation. The
amount of the cost recovery charges and who is liable to pay them will also be set in
delegated legislation. Setting the charges through delegated legislation will allow the
Minister for Agriculture to make appropriate and timely adjustments to the charges.
The Bill also includes a safeguard regarding the amounts of the charges that can be
authorised. Before the Governor-General makes a regulation to set the charges, the
Minister for Agriculture must be satisfied that the amount of the charge is set at a
level that is designed to recover no more than the Commonwealth's likely costs. This
will provide clients with confidence that the government will not over recover the
costs of its imported food services. It will also ensure compliance with the Australian
Government Cost Recovery Guidelines and international obligations.
Imported Food Charges (Imposition--Customs) Bill 2015
The Imported Food Charges (Imposition--Customs) Bill 2015 enables cost recovery
of activities provided to users of the imported food safety system. These include the
recovery of costs for corporate activities and supporting services such as intelligence,
surveillance and the development of audit and compliance standards for third party
arrangements where a charge is considered a duty of customs as defined by section 55
of the Constitution.
The Bill is enabling and mechanistic in character. Its provisions mirror the Imported
Food Charges (Imposition--General) Bill 2015 in operative function and effect.
Imported Food Charges (Imposition--Excise) Bill 2015
The Imported Food Charges (Imposition--Excise) Bill 2015 enables cost recovery of
activities that provide benefits to users of the imported food system. These include the
recovery of costs for corporate activities and supporting services such as intelligence,
surveillance and the development of audit and compliance standards for third party
arrangements where a charge is considered a duty of excise as defined by section 55
of the Constitution.
The Bill is enabling and mechanistic in character. Its provisions mirror the Imported
Food Charges (Imposition--General) Bill 2015 in operative function and effect.
Financial Impact Statement
The imposition bills have no financial impacts on the Commonwealth or persons that
import or deal with imported food. The imposition bills do not set the amount of the
charges and will not impose any financial impacts.
2
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Imported Food Charges (Imposition--General) Bill 2015
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 Imported Food Charges (Imposition--General) Bill 2015 enables cost recovery
of activities that provide benefits to users of the imported food system--particularly
the recovery of costs for compliance and intelligence capabilities, which are key
features of the Government's risk-based approach to managing the compliance and
safety of food imported into Australia.
The importation of food is managed under the Imported Food Control Act and related
delegated legislation. The Imported Food Control Act provides for the management of
food entering Australia ensuring the compliance of food imported with Australian
food standards and the requirements of public health and safety. The volume of food
imports continues to grow, as does the range of imported foods and the complexity of
the supply chains used by Australian food importers. These and many other factors all
contribute to the complexity of managing the standards of imported food.
Monitoring compliance with the arrangements under the Imported Food Control Act
comes at a cost. The Australian Government Cost Recovery Guidelines state that
agencies should set charges to recover some or all of the costs of activities that they
provide. These charges should reflect the costs of providing the activity and should
generally be imposed as a fee or, where efficient, as a levy.
The Bill is enabling and mechanistic in character. It does not itself set the amount of
the charges and will not impose any financial impacts. The amount of the cost
recovery charges and who is liable to pay them will be set in regulation under the Bill.
The Bill will align the cost recovery arrangements with current department operations.
The legislation will complement the existing fees for imported food and support
Australia's capacity to manage imported food risks into the future.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not engage any human rights
issues.
Minister for Agriculture
the Hon. Barnaby Joyce MP
3
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Imported Food Charges (Imposition--Customs) Bill 2015
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 Imported Food Charges (Imposition--Customs) Bill 2015 enables cost recovery
of activities that provide benefits to users of the imported food system--particularly
the recovery of costs for compliance and intelligence capabilities, which are key
features of the Government's risk-based approach to managing the compliance and
safety of food imported into Australia.
The importation of food is managed under the Imported Food Control Act and related
delegated legislation. The Imported Food Control Act provides for the management of
food entering Australia ensuring the compliance of food imported with Australian
food standards and the requirements of public health and safety. The volume of food
imports continues to grow, as does the range of imported foods and the complexity of
the supply chains used by Australian food importers. These and many other factors all
contribute to the complexity of managing the standards of imported food.
Monitoring compliance with the arrangements under the Imported Food Control Act
comes at a cost. The Australian Government Cost Recovery Guidelines state that
agencies should set charges to recover some or all the costs of activities that they
provide. These charges should reflect the costs of providing the activity and should
generally be imposed as a fee or, where efficient, as a levy.
The Bill is enabling and mechanistic in character. It does not itself set the amount of
the charges and will not impose any financial impacts. The amount of the cost
recovery charges and who is liable to pay them will be set in regulation under the Bill.
The Bill will align the cost recovery arrangements with current department operations.
The legislation will complement the existing fees for imported food and support
Australia's capacity to manage imported food risks into the future.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not engage any human rights
issues.
Minister for Agriculture
the Hon. Barnaby Joyce MP
4
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Imported Food Charges (Imposition--Excise) Bill 2015
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 Imported Food Charges (Imposition--Excise) Bill 2015 enables cost recovery of
activities that provide benefits to users of the imported food system -- particularly the
recovery of costs for compliance and intelligence capabilities, which are key features
of the Government's risk-based approach to managing the compliance and safety of
food imported into Australia.
The importation of food is managed under the Imported Food Control Act and related
delegated legislation. The Imported Food Control Act provides for the management of
food entering Australia ensuring the compliance of food imported with Australian
food standards and the requirements of public health and safety. The volume of food
imports continues to grow, as does the range of imported foods and the complexity of
the supply chains used by Australian food importers. These and many other factors all
contribute to the complexity of managing the standards of imported food.
Monitoring compliance with the arrangements under the Imported Food Control Act
comes at a cost. The Australian Government Cost Recovery Guidelines state that
agencies should set charges to recover some or all the costs of activities that they
provide. These charges should reflect the costs of providing the activity and should
generally be imposed as a fee or, where efficient, as a levy.
The Bill is enabling and mechanistic in character. It does not itself set the amount of
the charges and will not impose any financial impacts. The amount of the cost
recovery charges and who is liable to pay them will be set in regulation under the Bill.
The Bill will align the cost recovery arrangements with current department operations.
The legislation will complement the existing fees for imported food and support
Australia's capacity to manage imported food risks into the future.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not engage any human rights
issues.
Minister for Agriculture
the Hon. Barnaby Joyce MP
5
Notes on clauses
Imported Food Charges (Imposition--General) Bill 2015
Part 1--Preliminary
Clause 1 Short title
This clause provides that the Bill, when enacted, may be cited as the Imported Food
Charges (Imposition--General) Act 2015.
Clause 2 Commencement
This clause provides for the commencement of sections 1 and 2 of the Bill on the day
it receives Royal Assent. Sections 3 to 10 come into effect the day after the Bill
receives Royal Assent, or immediately after the commencement of section 3 of the
Imported Food Charges (Collection) Act 2015, whichever is the latter.
These commencement provisions ensure a charge can only be imposed when
legislation is in place to allow for the collection of that charge.
Clause 3 Bill binds the Crown
This clause provides that the Bill will bind the Crown in each of its capacities. This
means that the Commonwealth and state and territory governments will be bound to
comply with the provisions of the Bill.
Clause 4 Extension to External Territories
This clause provides that the Bill does not extend to the Territory of Christmas Island
and the Territory of Cocos (Keeling) Islands unless the Imported Food Control Act is
extended to those territories.
This ensures that charges related to the import of food can only be imposed in those
jurisdictions that the Imported Food Control Act is in effect.
Clause 5 Bill does not impose tax on property of a state
This clause ensures that charges imposed under the Bill are not taken to be imposed
on property of any kind belonging to a state.
Should a question arise whether certain charges would amount to taxation imposed on
property belonging to a state, subclause 5(2) clarifies that 'property of any kind
belonging to a State' has the same meaning as in section 114 of the Constitution.
Nothing under this clause would prevent a state voluntarily paying charges imposed
under this Bill.
Part 2--Charges
Clause 6 Imposition of charges
This clause permits the Commonwealth to impose charges in relation to prescribed
matters connected with the administration of the Imported Food Control Act. These
matters will be prescribed in the delegated legislation and will reflect the costs of
6
corporate activities and supporting imported food activities provided by the
department, such as, intelligence, audit and compliance standards for third party
arrangements.
Charges imposed under this Bill are imposed as taxes only for the purposes of cost
recovery. Two or more charges may be prescribed in relation to the same prescribed
matter or a single charge may cover two or more prescribed matters. This will provide
the department with sufficient flexibility to ensure that any charges allow for the
efficient recovery of the costs of specified activities.
Charges imposed under this Bill are only valid insofar as the charge is neither a duty
of customs or excise within the meaning of section 55 of the Constitution. This is
because individual matters of taxation are required to be included in separate pieces of
legislation, consistent with the Constitution.
Clause 7 Matters relating to amount of charges
This clause allows for regulations to prescribe charges by specifying an amount as the
charge or by specifying a method for calculating the amount of a charge.
Specifying the amount of a charge or the method for calculating the amount of a
charge in regulations, as opposed to the Bill itself, ensures that there is appropriate
flexibility to change the amount of a charge or the method for calculating the amount
of a charge over time. This will allow charges imposed in delegated legislation to be
increased or decreased as the costs of delivering imported food services change. This
will also help minimise unintended over or under recoveries.
Subclause 7(2) provides that before the Governor-General makes a regulation, under
subclause 6(1), prescribing a charge in relation to a matter, the Minister for
Agriculture must be satisfied that the amounts of charges are set at a level that is
designed to recover no more than the likely cost to the Commonwealth in connection
with the matter.
This ministerial oversight provides assurance, to those liable to pay a charge or
charges under the Bill, that the amount charged reflects the likely costs to the
Commonwealth in connection with the matter. Any charges set out in the regulations
will be consistent with the Australian Government Cost Recovery Guidelines.
Clause 8 Who is liable to pay charges
This clause allows the regulations to prescribe who is liable to pay a charge and that
one or more persons who import or deal with imported food may be liable to pay a
particular charge or charges prescribed under the Bill.
Specifying who is liable to pay a charge in regulations, as opposed to the Bill itself,
ensures that there is appropriate flexibility to change the nature of the charge as
required. This will allow charges imposed under the Bill to be targeted at the
appropriate recipients of the imported food service as operational practices evolve.
This will also ensure that the charges are consistent with the Australian Government
Cost Recovery Guidelines.
7
Clause 9 Exemptions from charges
This clause allows for the regulations to provide for certain prescribed matters to be
exempt from a charge or charges under the Bill.
Specifying exemptions from a charge in regulations, as opposed to the Bill itself,
ensures that there is appropriate flexibility to make amendments to the exemptions as
required.
Part 3--Miscellaneous
Clause 10 Regulations
This clause permits the Governor-General to make regulations to prescribe any
matters required or permitted, necessary or convenient to carry out or give effect to
the Imported Food Charges (Imposition--General) Act 2015.
8
Notes on clauses
Imported Food Charges (Imposition--Customs) Bill 2015
Part 1--Preliminary
Clause 1 Short title
This clause provides that the Bill, when enacted, may be cited as the Imported Food
Charges (Imposition--Customs) Act 2015.
Clause 2 Commencement
This clause provides for the commencement of sections 1 and 2 of the Bill on the day
it receives Royal Assent. Sections 3 to 10 come into effect the day after the Bill
receives Royal Assent, or immediately after the commencement of section 3 of the
Imported Food Charges (Collection) Act 2015, whichever is the latter.
These commencement provisions ensure a charge can only be imposed when
legislation is in place to allow for the collection of that charge.
Clause 3 Bill binds the Crown
This clause provides that the Bill will bind the Crown in each of its capacities. This
means that the Commonwealth and state and territory governments will be bound to
comply with the provisions of the Bill.
Clause 4 Extension to external Territories
This clause provides that the Bill does not extend to the Territory of Christmas Island
and the Territory of Cocos (Keeling) Islands unless the Imported Food Control Act is
extended to those territories.
This ensures that charges related to the import of food can only be imposed in those
jurisdictions that the Imported Food Control Act is in effect.
Clause 5 Bill does not impose tax on property of a state
This clause ensures that charges imposed under the Bill are not taken to be imposed
on property of any kind belonging to a state.
Should a question arise whether certain charges would amount to taxation imposed on
property belonging to a state, subclause 5(2) clarifies that 'property of any kind
belonging to a State' has the same meaning as in section 114 of the Constitution.
Nothing under this clause would prevent a state voluntarily paying charges imposed
under this Bill.
Part 2--Charges
Clause 6 Imposition of charges
This clause permits the Commonwealth to impose charges in relation to prescribed
matters connected with the administration of the Imported Food Control Act. These
matters will be prescribed in the delegated legislation and will reflect the costs of
9
corporate activities and supporting imported food activities provided by the
department such as, but not limited to, intelligence, surveillance, audit and compliance
standards for third party arrangements.
Charges imposed under the Bill are imposed as taxes only for the purposes of cost
recovery. Two or more charges may be prescribed in relation to the same prescribed
matter or a single charge may cover two or more prescribed matters. This will provide
the department with sufficient flexibility to ensure that any charges allow for the
efficient recovery of the costs of specified activities.
Charges imposed under this Bill are only valid insofar as the charge is a duty of
customs within the meaning of section 55 of the Constitution. This is because
individual matters of taxation are required to be included in separate pieces of
legislation, consistent with the Constitution.
Clause 7 Matters relating to amount of charges
This clause allows for regulations to prescribe charges by specifying an amount as the
charge or by specifying a method for calculating the amount of a charge.
Specifying the amount of a charge or the method for calculating the amount of a
charge in regulations, as opposed to the Bill itself, ensures that there is appropriate
flexibility to change the amount of a charge or the method for calculating the amount
of a charge over time. This will allow charges imposed in delegated legislation to be
increased or decreased as the costs of delivering imported food activities change. This
will also help to minimise unintended over or under recoveries.
Subclause 7(2) provides that before the Governor-General makes a regulation, under
subclause 6(1), prescribing a charge in relation to a matter, the Minister for
Agriculture must be satisfied that the amounts of charges are set at a level that is
designed to recover no more than the likely cost to the Commonwealth in connection
with the matter.
This ministerial oversight provides assurance to those liable to pay a charge or
charges under the Bill, that the amount charged reflects the likely costs to the
Commonwealth in connection with the matter. Any charges set out in the regulations
will be consistent with the Australian Government Cost Recovery Guidelines.
Clause 8 Who is liable to pay charges
This clause allows the regulations to prescribe who is liable to pay a charge and that
one or more persons that import or deal with imported food may be liable to pay a
particular charge or charges prescribed under the Bill.
Specifying who is liable to pay a charge in regulations, as opposed to the Bill itself,
ensures that there is appropriate flexibility to change the nature of the charge over
time. This will allow charges imposed under the Bill to be targeted at the appropriate
recipients of imported food activities as operational practices evolve. This will also
ensure that the charges are consistent with the Australian Government Cost Recovery
Guidelines.
10
Clause 9 Exemptions from charges
This clause allows for the regulations to provide for certain matters to be exempt from
a charge or charges under the Bill.
Specifying exemption from a charge in regulations, as opposed to the Bill itself,
ensures that there is appropriate flexibility to make amendments as required.
Part 3--Miscellaneous
Clause 10 Regulations
This clause permits the Governor-General to make regulations to prescribe any
matters required or permitted, necessary or convenient to carry out or give effect to
the Imported Food Charges (Imposition--Customs) Act 2015.
11
Notes on clauses
Imported Food Charges (Imposition--Excise) Bill 2015
Part 1--Preliminary
Clause 1 Short title
This clause provides that the Bill, when enacted, may be cited as the Imported Food
Charges (Imposition--Excise) Act 2015.
Clause 2 Commencement
This clause provides for the commencement of sections 1 and 2 of the Bill on the day
it receives Royal Assent. Sections 3 to 10 come into effect the day after the Bill
receives Royal Assent, or immediately after the commencement of section 3 of the
Imported Food Charges (Collection) Act 2015, whichever is the latter.
These commencement provisions ensure a charge can only be imposed when
legislation is in place to allow for the collection of that charge.
Clause 3 Bill binds the Crown
This clause provides that the Bill will bind the Crown in each of its capacities. This
means that the Commonwealth and state and territory governments will be bound to
comply with the provisions of the Bill.
Clause 4 Extension to external Territories
This clause provides that the Bill does not extend to the Territory of Christmas Island
and the Territory of Cocos (Keeling) Islands unless the Imported Food Control Act is
extended to those territories.
This ensures that charges related to the import of food can only be imposed in those
jurisdictions that the Imported Food Control Act is in effect.
Clause 5 Bill does not impose tax on property of a state
This clause ensures that charges imposed under the Bill are not taken to be imposed
on property of any kind belonging to a state.
Should a question arise whether certain charges would amount to taxation imposed on
property belonging to a state, subclause 5(2) clarifies that 'property of any kind
belonging to a State' has the same meaning as in section 114 of the Constitution.
Nothing under this clause would prevent a state voluntarily paying charges imposed
under this Bill.
Part 2--Charges
Clause 6 Imposition of charges
This clause permits the Commonwealth to impose charges in relation to prescribed
matters connected with the administration of the Imported Food Control Act. These
matters will be prescribed in the delegated legislation and will reflect the costs of
12
corporate activities and supporting imported food activities provided by the
department, such as, but not limited to intelligence, surveillance, audit and compliance
standards for third party arrangements.
Charges imposed under the Bill are imposed as taxes only for the purposes of cost
recovery. Two or more charges may be prescribed in relation to the same prescribed
matter or a single charge may cover two or more prescribed matters. This will provide
the department with sufficient flexibility to ensure that any charges allow for the
efficient recovery of the costs of specified activities.
Charges imposed under this Bill are only valid insofar as the charge is a duty of excise
within the meaning of section 55 of the Constitution. This is because individual
matters of taxation are required to be included in separate pieces of legislation,
consistent with the Constitution.
Clause 7 Matters relating to amount of charges
This clause allows for regulations to prescribe charges by specifying an amount as the
charge or by specifying a method for calculating the amount of a charge.
Specifying the amount of a charge or the method for calculating the amount of a
charge in regulations, as opposed to the Bill itself, ensures that there is appropriate
flexibility to change the amount of a charge or the method for calculating the amount
of a charge over time. This will allow charges imposed in delegated legislation to be
increased or decreased as the costs of delivering imported food activities change. This
will also help to minimise unintended over or under recoveries.
Subclause 7(2) provides that before the Governor-General makes a regulation, under
subclause 6(1), prescribing a charge in relation to a matter, the Minister for
Agriculture must be satisfied that the amounts of charges are set at a level that is
designed to recover no more than the likely cost to the Commonwealth in connection
with the matter.
This ministerial oversight provides assurance to those liable to pay a charge or
charges under the Bill that the amount charged reflects the likely costs to the
Commonwealth in connection with the matter. Any charges set out in the regulations
will be consistent with the Australian Government Cost Recovery Guidelines.
Clause 8 Who is liable to pay charges
This clause allows the regulations to prescribe who is liable to pay a charge and that
one or more persons may be liable to pay a particular charge or charges prescribed
under the Bill.
Specifying who is liable to pay a charge in regulations, as opposed to the Bill itself,
ensures that there is appropriate flexibility to change the nature of the charge over
time. This will allow charges imposed under the Bill to be targeted at the appropriate
recipients of imported food activities as operational practices evolve. This will also
ensure that the charges are consistent with the Australian Government Cost Recovery
Guidelines.
13
Clause 9 Exemptions from charges
This clause allows for the regulations to provide for certain matters to be exempt from
a charge or charges under the Bill.
Specifying exemptions from a charge in regulations, as opposed to the Bill itself,
ensures that there is appropriate flexibility to make amendments to the exemption as
required.
Part 3--Miscellaneous
Clause 10 Regulations
This clause permits the Governor-General to make regulations to prescribe any
matters required or permitted, necessary or convenient to carry out or give effect to
the Imported Food Charges (Imposition--Excise) Act 2015.
14