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Road Vehicle Standards Charges (Imposition-Customs) Bill 2018; Road Vehicle Standards Charges (Imposition-Excise) Bill 2018; Road Vehicle Standards Charges (Imposition-General) Bill 2018 [2018] AUSStaCSBSD 38 (14 February 2018)


Road Vehicle Standards Charges (Imposition—Customs) Bill 2018
Road Vehicle Standards Charges (Imposition—Excise) Bill 2018
Road Vehicle Standards Charges (Imposition—General) Bill 2018

Purpose
These bills seek to provide for the imposition of charges for activities and services relating to the regulatory administration of the Road Vehicles Standards Bill 2018
Portfolio
Infrastructure, Regional Development and Cities
Introduced
House of Representatives on 7 February 2018

Charges in delegated legislation [108]

1.139 Each of these three bills seeks to impose a charge as a tax in relation to prescribed matters connected with the administration of the Road Vehicle Standards Act 2018 or the Road Vehicle Standards (Consequential and Transitional Provisions) Act 2018 (currently bills before Parliament). The bills provide that the amount of the charge payable in each case may be prescribed by the regulations, and the regulations may either set out the amount of the charge payable or a method for working out an amount.

1.140 The explanatory memorandum makes a general comment in relation to the bills that setting the amount of the charge payable through regulations allows 'the relevant Minister to consult with stakeholders on the amounts; make appropriate and timely adjustments to the charges; and ensures that there is a level of parliamentary scrutiny for the charges' and the amount of each charge will be set in accordance with the Australian Government Charging Framework.[109] The explanatory memorandum also states that specifying the amount of each charge in regulations will provide 'appropriate flexibility' to change the amount over time and allow charges to be more easily increased or decreased in line with changes to costs for delivering services under the Road Vehicle Standards Bill.[110]

1.141 One of the most fundamental functions of the Parliament is to impose taxation (including duties of customs and excise).[111] The committee's consistent scrutiny view is that it is for the Parliament, rather than makers of delegated legislation, to set a rate of tax. The committee notes the statement in the explanatory memorandum that the charges will be imposed for the purposes of cost recovery and should not raise revenue above the cost of administering the Road Vehicle Standards Bill or the Road Vehicle Standards (Consequential and Transitional Provisions) Bill and providing services to regulated entities.[112] However, no guidance is provided on the face of each bill limiting the imposition of the charges in this way, nor are maximum charges specified. Where charges are to be prescribed by regulation the committee considers that, at a minimum, some guidance in relation to the method of calculation of the charge and/or a maximum charge should be provided on the face of the primary legislation, to enable greater parliamentary scrutiny.

1.142 The committee requests the minister's advice as to why there are no limits on the charges specified in each bill and whether guidance in relation to the method of calculation of these charges and/or a maximum charge can be specifically included in each bill.


[108] Clause 6 of the Road Vehicle Standards Charges (Imposition—Excise) Bill 2018; and clauses 7 of both the Road Vehicle Standards Charges (Imposition—General) Bill 2018 and the Road Vehicle Standards Charges (Imposition—Customs) Bill 2018. The committee draws senators’ attention to these provisions pursuant to Senate Standing Order 24(1)(a)(iv).

[109] Explanatory memorandum, pp. 2-3.

[110] Explanatory memorandum, pp. 7, 9, 10.

[111] This principle has been a foundational element of our system of governance for centuries: see, for example, article 4 of the Bill of Rights 1688: 'That levying money for or to the use of the Crown by pretence of prerogative without grant of Parliament for longer time or in other manner than the same is or shall be granted is illegal'.

[112] Explanatory memorandum, pp. 6, 8, 10.


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