EXPLANATORY STATEMENT
Statutory Rules 1986 No. 284
Issued by the Authority of the Minister for Aviation
AIR NAVIGATION REGULATIONS (AMENDMENT)
Under section 26 of the Air Navigation Act 1920 the Governor-General may make regulations not inconsistent with the Act for or in relation to the charging and recovery of fees and other charges in respect of matters specified in the regulations, being matters in relation to which expenses are incurred by Australia under the Act or under the regulations. The amounts or rates of the fees or charges specified in the regulations must not exceed amounts or rates that are reasonably related to the expenses incurred by Australia and must not amount to taxation. Regulation 329 of the Air Navigation Regulations provides that the fees and charges specified in the Schedule to the Regulations are payable in respect of specified regulatory services.
The Government has decided on an increase in charges for certain regulatory services and on the introduction of charges for a range of other regulatory services.
The proposed regulations implement a new structure and level of charges for a wide range of aviation regulatory services in line with the Government’s policy on progressive cost recovery from the aviation industry. The changes follow consultations with industry on implementation of recommendations of the Bosch Inquiry into Aviation Cost Recovery.
Taking into account new and increased charges, revenue from regulatory services will increase from $451,000 in 1985/86 to around $1.8 million in 1986/87, an increase in the rate of cost recovery for such services from 3.5% in 1985/86 to 14% in 1986/87.
The regulations are expressed to commence on 1 October 1986.
Overview
The Air Navigation Regulations (Amendment) Statutory Rules 1986 No. 284, enacted by the authority of the Minister for Aviation, addresses the need to adjust fees and charges for various regulatory services within the aviation industry to ensure they align with the expenses incurred by Australia and to implement a policy of progressive cost recovery from the aviation industry. This legislative amendment was introduced in response to recommendations from the Bosch Inquiry into Aviation Cost Recovery, aiming to increase the rate of cost recovery from 3.5% in 1985/86 to 14% in 1986/87. The policy objective underpinning this amendment is to better reflect the costs associated with providing regulatory services, thereby ensuring sustainable financial management within the aviation sector. The regulations, which implement these changes, are set to commence on 1 October 1986.
Scope and Application
The Air Navigation Regulations (Amendment) under section 26 of the Air Navigation Act 1920 applies to all entities and persons involved in aviation activities within Australia. These regulations are concerned with the charging and recovery of fees and other charges for specified regulatory services, which are outlined in the Schedule to the Regulations. The fees and charges are intended to cover expenses incurred by Australia in relation to these services and are not to be considered as taxation. The amendment specifically targets the adjustment of fees and the introduction of new fees for various regulatory services, reflecting the Government's policy on progressive cost recovery from the aviation industry. This policy change follows recommendations from the Bosch Inquiry into Aviation Cost Recovery and was developed through consultations with industry stakeholders. The scope of the regulations encompasses a broad range of aviation regulatory services, and the amendment aims to increase the rate of cost recovery for these services from 3.5% in the 1985/86 financial year to 14% in the 1986/87 financial year, with the new charges expected to raise revenue from approximately $451,000 to around $1.8 million over the same period. The regulations are set to commence on 1 October 1986.
Key Provisions
The Air Navigation Regulations (Amendment) Statutory Rules 1986 No. 284, issued under section 26 of the Air Navigation Act 1920, outline new provisions concerning fees and charges for various aviation regulatory services (section 329). These regulations introduce an updated structure and levels of charges for a broad range of services. Such changes are in line with the government's policy on progressive cost recovery from the aviation industry, following consultations and recommendations from the Bosch Inquiry into Aviation Cost Recovery. The amendment aims to ensure that the fees and charges are reasonably related to the expenses incurred by Australia and do not amount to taxation.
These regulations impose obligations on entities and individuals subject to aviation regulatory services. Service providers and recipients must now adhere to the new fee structure outlined in the schedule of the regulations (Schedule 1). This includes compliance with payment requirements for both existing and newly introduced services. The amended charges are intended to cover the costs incurred by Australia for providing these regulatory services, ensuring a fair and sustainable cost recovery system within the aviation industry.
Failure to comply with the provisions of these regulations can result in various consequences. Although the explanatory statement does not detail specific offences or penalties, it is likely that non-compliance could lead to enforcement actions under the Air Navigation Act 1920 or related legislation. Typically, penalties for such breaches may include fines or other civil or criminal sanctions, depending on the severity and intent of the non-compliance. The maximum penalties would align with those prescribed under the primary Act or relevant statutes governing aviation and regulatory compliance in Australia.