Commonwealth Numbered Regulations - Explanatory Statements
[Index] [Search] [Download] [Related Items] [Help]
INTERSTATE ROAD TRANSPORT CHARGE AMENDMENT REGULATIONS 2017 (F2017L00692)
EXPLANATORY STATEMENT
Issued under the authority of the Minister for Infrastructure and Transport
Subject - Interstate Road Transport Charge Act 1985
Interstate Road Transport Charge Amendment Regulations 2017
The Interstate Road Transport Act 1985 and Interstate Road Transport Regulations 1986 provide for the registration of vehicles under the Federal Interstate Registration Scheme (FIRS). The Interstate Road Transport Charge Act 1985 (the Act) and the Interstate Road Transport Charge Regulations 2009 (the Principal Regulations) provide for the registration charges for those vehicles.
FIRS is a voluntary national registration scheme for heavy vehicles engaged solely in interstate trade. The states and territories administer FIRS on behalf of the Australian Government. All revenue from the charges for FIRS vehicles is distributed to the states and territories according to a distribution formula tied to road use in each jurisdiction.
Section 7 of the Act provides, in part, that the Governor-General may make regulations for the purposes of section 5 of the Act. Section 5(3) of the Act provides that the amount of charge is the amount calculated in accordance with regulations made by the Governor-General under section 7 the Act.
The Principal Regulations provide for the calculation of heavy vehicle registration charges for FIRS vehicles. The current method of calculating charges for vehicles registered under FIRS came into effect on 1 July 2016. This method consists of a road component and a regulatory component. The road component is designed to recover expenditure relating to roads that can be attributed to the use of heavy vehicles either generally or particularly. The regulatory component is designed to recover expenditure related to the regulation of heavy vehicles. The regulatory component will be paid to the National Heavy Vehicle Regulator by participating states and territories.
The purpose of the Interstate Road Transport Charge Amendment Regulations 2017 (the proposed Regulations) is to amend the Principal Regulations to:
* remove outdated and unnecessary information and terminology; and
* insert updated registration charges for FIRS registered vehicles in the 2017-2018 financial year that effect the Transport and Infrastructure Council-agreed average decrease of 1.6 percent per annum.
These amendments also accord with the 2014 Heavy Vehicle Charges Determination (2014 Determination). The 2014 Determination revised national charges for heavy vehicles and trailers. These amendments were applied to the charges for vehicles registered under FIRS. The 2014 Determination was developed by the National Transport Commission (NTC) and agreed by the Transport and Infrastructure Council. A Council of Australian Governments Regulation Impact Statement was completed by the NTC and approved by the Office of Best Practice Regulation (OBPR) as part of the development of the 2014 Determination. This process involved written submissions, provision of industry briefings and a series of focus group consultations with industry, state and territory governments, peak industry associations and freight customers.
The OBPR was consulted in relation to the making of the Regulation, and advised that a Regulatory Impact Statement is not required as the amendments are mechanical in nature and do not require consideration by Cabinet (OBPR ID: 22288).
The NTC, as well as relevant state and territory authorities, were consulted in respect of the proposed amendments. The NTC provided the updated registration charges for the 2017-2018 financial year, and these were duly provided to the state and territory authorities as part of these consultations. This followed the extensive public consultation process undertaken in respect of the 2014 Determination.
A Statement of Compatibility with Human Rights is set out at Attachment A.
The Act does not specify any conditions that need to be satisfied before the power to make the Regulations may be exercised.
The Regulations is a legislative instrument for the purposes of the Legislation Act 2003.
The Regulations commences on the day after the regulation is registered.
Details of the Regulations are set out in the Attachment B.
Authority: Section 7 of the
Interstate Road Transport Charge Act 1985
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Interstate Road Transport Charge Amendment Regulation 2017
This Disallowable Legislative Instrument 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 Disallowable Legislative Instrument
Section 7 of the Interstate Road Transport Charge Act 1985 provides, in part, that the Governor-General may make regulations for the purposes of section 5 of the Act. Section 5(3) provides that the amount of charge is the amount calculated in accordance with regulations made by the Governor-General under section 7.
In accordance with section 7 of the Interstate Road Transport Charge Act 1985, this Disallowable Legislative Instrument determines Regulations that vary the registration charges that are to apply to heavy vehicles registered under the Federal Interstate Registration Scheme for the period 1 July 2017 to 30 June 2018.
Charges for vehicles registered under the Federal Interstate Registration Scheme will consist of a road component and a regulatory component. The road component is designed to recover expenditure relating to roads that can be attributed to the use of heavy vehicles either generally or particularly. The regulatory component is designed to recover expenditure related to the regulation of heavy vehicles.
Human rights implications
This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
ATTACHMENT B
Details of the Interstate Road Transport Charge Amendment Regulation 2017
Section 1 - Name of Regulations
This section provides that the title of the Regulations is the Interstate Road Transport Charge Amendment Regulations 2017 (the Regulations).
Section 2 - Commencement
This section outlines when the Regulations commences.
Section 3 - Authority
This section provides that the Regulations are made under the Interstate Road Transport Charge Act 1985.
Section 4 - Schedule
This section provides for the Interstate Road Transport Charge Amendment Regulations 2009 (the Principal Regulations) to be amended or repealed as set out in the Schedule to these Regulations.
Schedule 1 - Amendments
Item [1] - Repeal and replacement of Principal Regulations 3, 4, 5, 6, 7, 7A and 7B
This item repeals Principal Regulations 3, 4, 5, 6, 7, 7A and 7B as they facilitate terms and methodologies concerning previous financial years that are no longer relevant.
This item also replaces these provisions with Regulations 3 and 4, updating and clarifying the registration charges for the 2017-2018 financial year.
Regulation 3 - Definitions
Regulation 3 clarifies that any references to 'the Act' in the Regulations refer to the Interstate Road Transport Charge Act 1985 (the Act).
Regulation 4 - Registration charges - 2017-2018 financial year
Regulation 4 sets out the amount of charge for a full year of registration of a vehicle that begins on 1 July 2017 and throughout the 2017-2018 financial year.
Subregulation 4(1) sets out the formula used in calculating the amount of annual registration charge for a registered heavy vehicle, and distinguishes between its component parts, the 'road component' and the 'regulatory component'. The road component is designed to recover expenditure relating to roads that can be attributed to the use of heavy vehicles either generally or particularly. The regulatory component is designed to recover expenditure related to the regulation of heavy vehicles, and paid to the National Heavy Vehicle Regulator.
The tables contained in subregulations 4(2) to 4(4) set out the amounts of the road component for load carrying vehicles, trailers and buses. The tables contained in subregulations 4(5) to 4(7) set out the amounts of the regulatory component for load carrying vehicles, trailers and buses.
An example of a registration charge calculation is set out to demonstrate the application of the charges formula from subregulation 4(1) in the context of the stipulated charges in subregulations 4(2) to 4(7).
Calculation of registration charges for trailers
Subregulations 4(3) and 4(6) also clarifies that each charge set out is per axle, for each axle group. For example, if you register a B-double configuration trailer consisting of a two axle A-trailer and a three axle B-trailer, the applicable registration charge for the trailers would be determined as follows:
Road component
= Tandem Axle B-Double Lead Trailer (Item 4 of subregulation 4(3)) plus Tri-Axle Semi Trailer (Item 3 of subregulation 4(3))
= $778 x 2 + $553 x 3
= $1556 + $1659
= $3215
Regulatory component
= Tandem Axle B-Double Lead Trailer (Item 4 of subregulation 4(6)) plus Tri-Axle Semi Trailer (Item 3 of subregulation 4(6))
= $28 x 2 + $18 x 3
= $56 + $54
= $110
Total Trailer Registration Cost = $3325
Item [2] - Future repeal of regulation 7C
This item inserts subregulation 7C(8), which facilitates the repeal of Regulation 7C at the commencement of the 2018-2019 financial year. This amendment ensures both the ongoing relevance and clarity of the Regulations application.
Item [3] - Repeal of Regulation 8
This item repeals Principal Regulations 8 as it facilitates the use of a term concerning previous financial years that is no longer relevant.
Item [4] - Repeal of Schedule 1
This item repeals Schedule 1 of the Principal Regulations as its contents facilitate terms and methodologies concerning previous financial years that are no longer relevant.