Commonwealth of Australia Explanatory Memoranda

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INTERSTATE ROAD TRANSPORT CHARGE AMENDMENT BILL 1998

13810  Cat. No. 97 2861 9  ISBN 0644 519045


1998






THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

INTERSTATE ROAD TRANSPORT CHARGE AMENDMENT BILL 1998

EXPLANATORY MEMORANDUM

(Circulated by authority of the Minister for Transport and Regional Development, The Honourable Mark Vaile MP)

INTERSTATE ROAD TRANSPORT CHARGE AMENDMENT BILL 1998

Outline

The purpose of this Bill is to amend the Interstate Road Transport Charge Act 1985 (IRT Charge Act) to provide for a charge formula relating to less than one year registration charges for vehicles registered under the Federal Interstate Registration Scheme (FIRS).

The IRT Charge Act is an integral part of the legislative framework for FIRS vehicles engaged in interstate trade and commerce. The collection of registration charges from these vehicles helps to recover the cost of road wear caused by their operation in each State and Territory.

Amendments to the IRT Charge Act in 1995 implemented national charges to apply to vehicles registered under the Federal Interstate Registration Scheme. The Schedule of charges referred only to annual charges, however, at the same time the IRT Regulations were amended to provide for short term registration. The proposed amendment will provide a formula for calculation of registration charges for a period of less than one year.

The proposed amendment is consistent with the charge formula provisions in the Road Transport Reform (Heavy Vehicles Registration) Act 1997, for less than one year heavy vehicle registration.

The proposed amendment is one of the ten initiatives contained in the Second Heavy Vehicle Reform Package endorsed by the Ministerial Council for Road Transport, at its February 1997 meeting.

Financial Impact

The net budgetary impact of these amendments will be nil. Amounts equivalent to registration charges will be paid into the Interstate Road Transport Fund and will continue to be fully distributed to the States and Territories for expenditure on road maintenance.

All administrative costs incurred by the State and Territory authorities administering the scheme are met through the levying of fees paid by the vehicle owner. No additional administration or staffing requirements will arise for the Federal Department of Transport and Regional Development.

Interstate Road Transport Charge Amendment Bill 1998

NOTES ON ITEMS

Clause 1 - Short title

This clause provides for the amended Act to be called the Interstate Road Transport Charge Amendment Act 1998.

Clause 2 - Commencement

This clause specifies that the Act will commence on the day on which it receives Royal Assent.

Clause 3 - Schedule(s)

This clause provides that each Act or item specified in a Schedule to this Act is amended according to amendments made in this Act.

Schedule 1 – Amendment of the Interstate Road Transport Charge Act 1985

Item 1 – Subsection 5(1)

The amendment inserts a reference to a charge for registration of heavy vehicles for less than one year under the Federal Interstate Registration Scheme (FIRS).

Item 2 – After subsection 5(1)

The amendment provides a formula for the amount of charge for the registration of heavy vehicles for periods of less than one year under FIRS. The formula is a pro rata calculation based on the number of days the vehicle is nominated for registration and the annual registration charge.

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