Overview

The Fuel Quality Standards Amendment (Fees) Regulation 2016 was introduced to address the need for the fuel quality regulation system to align with the Australian Government Charging Framework and the Australian Government Cost Recovery Guidelines. This was identified as necessary to ensure that the revenue generated from fees aligns with the expenses incurred in providing the services related to processing applications for varying fuel standards. The regulation was enacted by the Minister for the Environment under the authority provided by Section 73 of the Fuel Quality Standards Act 2000. The policy objective was to implement a flat fee structure that reflects the departmental costs associated with processing applications, thereby replacing the previous tiered fee structure. This change was made to ensure the fees were consistent with the regulatory frameworks and guidelines mentioned. The regulation was made under the authority of the Minister for the Environment and commenced on 1 July 2016. The Fuel Quality Standards Amendment (Fees) Regulation 2016 amends the Fuel Quality Standards Regulations 2001 by replacing the tiered fee structure with a flat fee of $5,944 per application. This change was implemented to ensure compliance with the Australian Government Charging Framework and the Australian Government Cost Recovery Guidelines. The Office of Best Practice Regulation advised that a Regulation Impact Statement was not required as the changes were considered to have a minor regulatory impact and were of a machinery nature. Consequently, no consultation with industry or stakeholders was undertaken before the amendment was made, although relevant stakeholders will be informed once the regulation has been enacted.

Scope and Application

The Fuel Quality Standards Amendment (Fees) Regulation 2016 amends the Fuel Quality Standards Regulations 2001 to adjust the fees associated with applications for approval to vary a fuel standard or a fuel quality information standard under the Fuel Quality Standards Act 2000. This Act applies across Australia and regulates the quality of fuel supplied to ensure that pollutants and emissions arising from the use of fuel are reduced, thereby protecting the environment and public health. The amendment replaces the previous tiered fee structure with a flat fee of $5,944 per application to align with the Australian Government Charging Framework and Cost Recovery Guidelines, which require revenue to be aligned with expenses. The regulation applies to any person who submits an application for approval to vary a fuel standard or a fuel quality information standard, as outlined in the Act. The regulation commenced on 1 July 2016 and is a legislative instrument under the Legislation Act 2003. There are no stated exclusions or exemptions in the Regulation, and it extends the application of the principal regulations through amendment.

Key Provisions

The main operative sections of the Fuel Quality Standards Amendment (Fees) Regulation 2016 (the Regulation) pertain to the amendment of regulation 5 of the Fuel Quality Standards Regulations 2001 (the Principal Regulations). Specifically, Item 1 of the Regulation repeals the existing tiered fee structure for applications to vary fuel standards or fuel quality information standards and replaces it with a flat fee of $5,944 per application. This amendment is designed to ensure that the fees charged align with the costs incurred by the department in processing the applications, in accordance with the Australian Government Charging Framework and the Australian Government Cost Recovery Guidelines (Section 4, Schedule 1, Item 1). Additionally, the Regulation includes a new Part 8, which contains application, saving, and transitional provisions, specifying that the amendments apply to applications for approval made on or after 1 July 2016 (Section 4, Schedule 1, Item 2). The Regulation imposes several obligations and requirements on the parties or entities it governs. Primarily, it mandates that any person or entity seeking to vary a fuel standard or a fuel quality information standard under section 13 of the Fuel Quality Standards Act 2000 must now pay a flat fee of $5,944 per application, as opposed to the previous tiered fee structure. This change ensures that the fee charged reflects the actual costs incurred by the department, aligning with the Australian Government Charging Framework and the Australian Government Cost Recovery Guidelines (Section 4, Schedule 1, Item 1). Furthermore, the new Part 8 of the Principal Regulations outlines transitional provisions, ensuring that the new fee structure applies to all applications for approval submitted on or after 1 July 2016 (Section 4, Schedule 1, Item 2). The Regulation also outlines the potential consequences for non-compliance with the new fee structure. While the Regulation itself does not specify explicit offences or penalties for breach, it is implicit that failure to pay the new flat fee of $5,944 per application for approval would render an application non-compliant with the amended Principal Regulations. Consequently, the department may refuse to process the application, effectively preventing the applicant from obtaining the desired variation to the fuel standard or fuel quality information standard. It is essential for applicants to adhere to the new fee requirements to ensure their applications are processed in a timely and effective manner (Section 4, Schedule 1, Item 1).