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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE SENATE
MOTOR VEHICLE STANDARDS (CHEAPER TRANSPORT)
BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by the authority of Senator Christine Milne)
Motor Vehicle Standards (Cheaper Transport) Bill 2014
GENERAL OUTLINE: Policy Rationale
This Bill seeks to improve the fuel efficiency of new cars purchased in Australia to
reduce costs for motorists, reduce emissions into our atmosphere, promote strong
trade ties, reduce dependence on imported oil and provide future jobs for the
automotive parts and services industry.
The law will not commence until 2017 once Australia's automotive manufacturers
have wound down their operations and will not impact on domestic employment.
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the Bill, when enacted, to be cited as the Motor Vehicle
Standards (Cheaper Transport) Act 2014.
Clause 2 - Commencement
This clause provides for the Act to commence on the day after it receives the Royal
Assent.
Clause 3 - Definitions
This clause specifies the definitions that apply to terms encapsulated in the Bill.
Clause 4 - Vehicle Carbon Emission Standards
This clause sets the legally binding efficiency standards that a manufacturer or
importer of vehicles is required to meet as the average across its fleet of passenger or
light commercial vehicles if they sell more than 1000 of their vehicles in a year.
There are two separate targets: 130g CO2 / km for 2020 and 95g CO2 / km for 2023;
however, compliance will be required from 2017 when 70% of a seller's fleet has to
meet the 2020 target, increasing by 10% each year until 2020. In 2021, 80% of a
seller's fleet would have to meet the standard of 95g CO2 / km. These standards are
based on the European Union standards, but with a lag of four years for the 2020
target and three years for the 2023 target.
Clauses 5 and 6 - Charges
These clauses apply to a seller of vehicles whose fleet averages above the values set
in clause 4. The penalty charge is multiplied by each car sold and worked out on the
basis of the amount by which the fleet average is above the standard, starting at less
than one gram and increasing up to three grams and beyond. These figures are based
on the existing European Union formula found in Article 9 of Regulation (EC) No
443/2009.
Clauses 7-12 - Timing and payment of penalties
Clause 7 stipulates that when a charge becomes due for payment is to be set by
regulations.
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Clause 8 also provides for the penalty for late payment to be set by regulations but the
level is capped at 1.5% of the outstanding amount and also sets the provisions for
judgement charges resulting from a court order.
Clause 9 allows the Clean Energy Regulator to remit late payments once the
circumstances provided by regulations are satisfied and allows an appeal against the
regulator's decision to be made at the Administrative Appeals Tribunal.
Clause 10 leaves the manner of payment to be determined by the regulations.
Clause 11 explicitly provides jurisdiction for the regulator to represent the
Commonwealth in legal proceedings to reclaim outstanding money.
Clause 12 allows for overpayments by sellers to be either credited or refunded by the
regulator.
Clause 13
This clause is intended to provide for the collection and publication of the mean
emissions performance of cars sold and the number of cars sold, in line with the Clean
Energy Regulator's other programs that provide the public with data on clean energy
programs.
It will require the manufacturer or importer of vehicles to provide this information in
a form and time stipulated by the regulations.
Clauses 14 and 15
These clauses allow an authorised officer of the regulator to request further
information, accompanied by a statutory declaration to assure its accuracy. If a person
fails to comply with these requests, they will have committed a strict liability offence.
Similarly, they will have committed an offence if they have provided misleading
information to the authorised officer.
Strict liability which has the effect of reversing the proof of fault but this is warranted
in these circumstances. The difficulty of the regulator proving intention and the ease
of complying with the provision to provide information to the regulator justifies the
application of strict liability. Liability can be avoided with a reasonable excuse
(subclause 15(2)). Furthermore the penalty only invokes financial consequences, not
imprisonment, supporting the application of a strict liability provision.
Clause 16
This clause provides that the actions of an employee or director of a body corporate
will be attributed to the body corporate provided the actions were within the scope of
their employment duties. If the activities fall outside that scope then an individual
may be liable to the criminal charge.
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Clause 17
This clause allows the Finance Minister to collect or receive charges or penalties for
late payment through agreements entered into with an eligible party. This power can
be delegated by the Minister.
Clause 18
This clause provides for an authority to enter an agreement under this Bill or exercise
a power under it.
Clause 19
This clause creates a requirement for the Climate Change Authority to conduct a
review of the scheme and recommend future mandatory standards beyond 2023. This
review must occur in 2021 and be tabled in Parliament upon its completion.
Clause 20
This clause allows the Governor General to issue the relevant regulations under the
Act and outlines the subject matter that regulations may deal with. This is not an
exhaustive list.
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Motor Vehicle Standards (Cheaper Transport) Bill 2014
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 purpose of this Bill is to provide minimum fuel efficiency standards on new
passenger and light commercial vehicles to save motorists money and reduce
emissions.
Human Rights Implications:
Subclause 15(1) by virtue of subclause 15(3) is a strict liability offence which has the
effect of reversing the burden of proof of fault but is warranted in these
circumstances. The difficulty of the regulator proving intention and the ease of
complying with the provision to provide information to the regulator justifies the
application of strict liability. Liability can be avoided with a reasonable excuse.
Furthermore the penalty only invokes financial consequences, not imprisonment,
supporting the application of a strict liability provision.
The Bill enhances the right to an adequate standard of living because the expected
increased upfront costs of higher efficiency vehicles will be paid off over three years
because of the savings that accrue from petrol costs. Given that the average new car is
used for five years, this Bill will enhance the right to an adequate standard of living
by freeing up more discretionary spending.
In all other respects, this Bill does not engage any of the applicable rights or
freedoms.
Conclusion:
After considering the implications of subclause 15(1), it is concluded that this Bill is
compatible with human rights.
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