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Ozone Protection (Licence Fees - Imports) Amendment Bill 2003
WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments. This Digest does not have
any official legal status. Other sources should be consulted to determine
the subsequent official status of the Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Ozone Protection (Licence Fees - Imports) Amendment Bill 2003
House: House of Representatives
Portfolio: Environment and Heritage
Commencement: On Royal Assent
To extend the current payments applying to the importation
of prescribed ozone-depleting substances to certain synthetic greenhouse
gases. The
The Ozone Protection (Licence Fees - Imports) Amendment
Bill 2003 (the
Existing Section
4 of the Ozone Protection (Licence Fees - Imports) Act 1995 provides
that the holder of a controlled substances(1) licence must
pay a ‘fee’ to the Commonwealth for any HCFC or methyl bromide imported
by them during a quarter. The fee is calculated by clause 4 of the Ozone Protection (Licence Fees— Imports) Regulations.
Items 1-3 all make minor consequential changes as a result of regulation of synthetic greenhouse gas being introduced under the Ozone Protection and Synthetic Greenhouse Gas Legislation Amendment Bill 2003.
Item 4 substitutes
a new section 4 that provides
that the holder of a controlled substances licence is liable to pay a
‘levy’ to the Commonwealth for the importation of any substance allowed
by that licence. As for existing section 4, the amount is payable on quarterly
basis and is to be calculated under regulations.(2)
Where the importation of a SGG is permitted by regulations made
under section 13(1A) of the Ozone Protection and Synthetic Greenhouse
Gas Legislation Amendment Bill 2003, no levy is payable: new
subsection 4(2). New subsection
4(4) sets an upper limit on the levy. The upper limits are 50% above
the current fees.(3) According the Explanatory
Memorandum to the
The original aim of the [Ozone Protection Act 1989] was that meeting Environment Australia’s administrative and industry support activities be financed through fees paid by industry. However, commencing in 2010, Environment Australia’s costs are expected to exceed the combined revenue available from accumulated financial reserves and future revenue from payments under existing fee structures. In order to meet obligations extending through to 2020 when ODS will no longer be needed for most applications, Environment Australia is seeking increases of 50 percent in selected licence application fees, increases of 50 percent in activity fees and the introduction of fees for certain administrative functions now performed free of charge.
Licence application fees have not risen since 1995. In the ensuing period, normal parameter adjustments in the average cost to Environment Australia of employing staff to process licence applications have been experienced. Second, in the next 10-15 years the revenue which Environment Australia obtains from activity fees will decline sharply as legislative limits covering industry access to imports of two prominent ODS - hydrochlorofluorocarbons (HCFCs) and methyl bromide used for horticultural purposes - progressively restrict imports. A decline in revenue from activity fees will occur at the same time [Environment Australia] faces the greatest demand on its resources to assist industry in adjusting to ozone benign alternatives.
Note that new
section 4 uses the term ‘levy’ as opposed to the existing ‘fee’. A
levy is a form of taxation. The change of wording from fee to levy is
consistent with Office of Parliamentary Drafting Directions that state
that taxation should ‘be imposed by express words’.(5)
1. These are hydrochloroflurocarbons (HCFCs) and methyl bromide.
2. Note that this quarterly ‘activity’ levy is additional to the costs of holding a controlled substances licence. A controlled substances licence, which is valid for two years, costs $10 000. See Explanatory Memorandum, p. 5.
3. There is no current fee for SGGs as these are not covered by current legislation.
4. P. 4.
5. Drafting Direction 4/1993, See also Drafting Direction 6/1982.
This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.
ISSN 1328-8091
© Commonwealth of Australia 2003
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Published by the Department of the Parliamentary Library, 2003.