Explanatory Statement
1. Authority
Section 13 of the Food Standards Australia New Zealand Act 1991 (the FSANZ Act) provides that the functions of Food Standards Australia New Zealand (the Authority) include the development of standards and variations of standards for inclusion in the Australia New Zealand Food Standards Code (the Code).
Division 2 of Part 3 of the FSANZ Act specifies that the Authority may prepare a proposal for the development or variation of food regulatory measures, including standards. This Division also stipulates the procedure for considering a proposal for the development or variation of food regulatory measures.
FSANZ prepared Proposal P1025 to revise the Code. The Authority considered the Proposal in accordance with Division 2 of Part 3 and has approved a draft revised Code.
Following consideration by the Legislative and Governance Forum on Food Regulation[1], section 92 of the FSANZ Act stipulates that the Authority must publish a notice about the standard or draft variation of a standard.
Section 94 of the FSANZ Act specifies that a standard, or a variation of a standard, in relation to which a notice is published under section 92 is a legislative instrument, but is not subject to parliamentary disallowance or sunsetting under the Legislative Instruments Act 2003.
2. Purpose
The Authority has approved variations of Chapters 1 and 2 of the Code.
3. Documents incorporated by reference
The variations to food regulatory measures do not incorporate any documents by reference. The variations update some references to documents that are incorporated by reference.
4. Consultation
In accordance with the procedure in Subdivision F of Division 2 of Part 3 of the FSANZ Act, the Authority’s consideration of Proposal P1025 included two rounds of public comment following an assessment and the preparation of a draft Standard and associated reports. Submissions were called for on 23 May 2013 for a 12-week period, and on 10 July 2014 for an eight-week period.
A Regulation Impact Statement was not required, because the proposed variations to the Code are likely to have a minor impact on business and individuals.
5. Statement of compatibility with human rights
This instrument is exempt from the requirements for a statement of compatibility with human rights as it is a non-disallowable instrument under section 94 of the FSANZ Act.
6. Variation
Schedule 28 – Formulated caffeinated beverages
Section S28—1 Name
Section S28—1 establishes that the instrument is the Australia New Zealand Food Standards Code – Schedule 28 – Formulated caffeinated beverages.
Section S28—2 Formulated caffeinated beverages
Section S28—2 repeats, for new sections 2.6.4—2 and 2.6.4--5, the amounts of substances that may be in formulated caffeinated beverages. The information is currently presented in the Table to subclause 2(2) of Standard 2.6.4.
[1] Previously known as the Australia and New Zealand Food Regulation Ministerial Council
Overview
The Food Standards Australia New Zealand Act 1991 (FSANZ Act) was enacted to ensure the safety and quality of food products in Australia and New Zealand. The Act established Food Standards Australia New Zealand (FSANZ) as the independent statutory body responsible for developing food standards and regulations that are incorporated into the Australia New Zealand Food Standards Code. The explanatory statement for F2015L00455, dated 2015, outlines the Authority's process in revising the Code. The Authority, in accordance with the FSANZ Act, considered Proposal P1025 to revise the Code, which involved two rounds of public consultation. The Authority's consideration process included an assessment and the preparation of a draft Standard and associated reports. The purpose of the variations approved by the Authority involves updating certain substances in formulated caffeinated beverages, as detailed in Chapter 1 and 2 of the Code. The Authority's approval of these variations is subject to the requirements of the FSANZ Act and the process outlined in the Act, including the mandatory publication of a notice under section 92 of the Act. The variations to the Code are not subject to parliamentary disallowance or sunsetting, as they are considered legislative instruments under section 94 of the FSANZ Act.
Scope and Application
The Australia New Zealand Food Standards Code – Schedule 28 – Formulated caffeinated beverages applies to all entities involved in the manufacture, packaging, and sale of formulated caffeinated beverages in Australia and New Zealand. This includes food businesses, manufacturers, importers, and retailers who produce or distribute these beverages within the jurisdictions of both countries. The Act encompasses a wide range of entities and industries involved in the food supply chain, ensuring uniform standards across the region. The application extends nationally within Australia and New Zealand, governed by the overarching Food Standards Australia New Zealand Act 1991. The Act does not specify exclusions or exemptions, but certain thresholds and conditions for substances in formulated caffeinated beverages are outlined in the revised Code. The Authority may further extend or restrict the application of these standards through subordinate instruments, aligning with the procedural requirements stipulated in the FSANZ Act.
Key Provisions
The main operative sections of this legislation detail the variations to the Australia New Zealand Food Standards Code (the Code) concerning formulated caffeinated beverages, as specified in Schedule 28 (S28-1 and S28-2). These sections outline the updated amounts of substances that may be present in formulated caffeinated beverages, reflecting the Authority's approved variations. The Authority, under Section 13 of the Food Standards Australia New Zealand Act 1991 (FSANZ Act), has developed these standards for inclusion in the Code, following the procedure outlined in Division 2 of Part 3 of the FSANZ Act. Section 92 of the FSANZ Act mandates that the Authority must publish a notice regarding the draft variation of a standard, and according to Section 94, such a standard is considered a legislative instrument, though it is exempt from parliamentary disallowance or sunsetting under the Legislative Instruments Act 2003.
The obligations imposed on the parties governed by this Act primarily involve adherence to the newly established standards for formulated caffeinated beverages. The Authority, as the regulatory body, is responsible for ensuring that these standards are followed within the food industry. The food industry, in turn, must comply with these updated standards when producing and marketing formulated caffeinated beverages. Public consultation is integral to this process, with the Authority having undertaken two rounds of public comment to gather feedback and submissions on the proposed variations. This ensures that the standards are practical and consider the potential impact on both business and individuals.
In terms of potential breaches and consequences, the Act does not explicitly outline specific offences or penalties for non-compliance with the new standards. However, failure to adhere to the standards set by the Authority could potentially lead to enforcement actions by the regulatory body. The FSANZ Act provides mechanisms for ensuring compliance, although the specific penalties for non-compliance are not detailed within this legislative instrument. It is important to note that the variations approved are considered minor in impact, which might reflect a lesser emphasis on strict enforcement compared to more significant regulatory changes.
The Authority's consideration of the proposal included thorough public consultation, aligning with the requirements of Subdivision F of Division 2 of Part 3 of the FSANZ Act. The variations were deemed not to require a Regulation Impact Statement, as they are likely to have a minor impact on business and individuals. Furthermore, this instrument is exempt from the need for a statement of compatibility with human rights, as it is a non-disallowable instrument under Section 94 of the FSANZ Act. The Authority’s process of updating the Code ensures that the standards remain relevant and effective in regulating the food industry, particularly concerning the composition of formulated caffeinated beverages.