EXPLANATORY STATEMENT
Issued by the Authority of the Greenhouse and Energy Minimum Standards Regulator
Greenhouse and Energy Minimum Standards (Variation of a Model’s Registration – Application Fees) Instrument 2014
The Greenhouse and Energy Minimum Standards Act 2012 (GEMS Act) requires models of products that are covered by a Greenhouse and Energy Minimum Standards determination to be registered and provides offences for the supply, offer to supply or use for commercial purposes of GEMS products that are not registered.
Under section 41 of the GEMS Act, a person may apply to the GEMS Regulator to register in relation to a product class:
(a) a single model of GEMS products, specified in the application; or
(b) 2 or more models of GEMS products, specified in the application, that are in the same family of models.
Under section 46(1) of the Act, a person may apply to the GEMS Regulator to vary an existing registration in order to add additional product models in the same family of models.
Section 77 of the Act enables the GEMS Regulator to charge fees for services. Fees that may be charged under section 77 are different to the fees that may be charged under the Greenhouse and Energy Minimum Standards (Registration Fees) Act 2012, which applies to the fee payable to register a product under section 41 of the Act.
Paragraph 64(1)(c) requires an application under Part 5 (Registering models of GEMS products) of the Act, other than an application to register a product under section 41, to be accompanied by the fee specified by the GEMS Regulator by legislative instrument.
The Greenhouse and Energy Minimum Standards (Variation of a Model’s Registration – Application Fees) Instrument 2014 sets a fee of $250 for applications to the GEMS Regulator to vary an existing registration in relation to the relevant product class to cover one or more additional models of GEMS products. A payment of this fee is not the provision of consideration for GST purposes and so is not subject to GST. This fee is equivalent to the registration processing costs incurred by the GEMS Regulator. The recovery of the compliance monitoring costs has not been factored into this fee, as it is not considered to significantly add to the costs involved with compliance, monitoring and enforcement.
Consultation
The Australian Government conducted extensive consultation with Australian businesses throughout the development of the GEMS Act. The Australian Government also consulted with the governments of New Zealand and Australian states and territories, who were all involved in transferring the then twenty-year old E3 Program to the new framework.
One component of the consultation process was to address registration fees to recover registration and compliance monitoring costs. Australian businesses provided strong support for fees to recover these costs on the understanding that it would assist the GEMS Regulator to improve registration and compliance monitoring services.
Authority: Subsection 77(1) of the
Greenhouse and Energy Minimum Standards Act 2012
Contents of the Instrument
Part 1 Preliminary
1 Name of instrument
Section 1 sets out the name of the instrument.
2 Commencement
Section 2 provides for the commencement of the instrument.
3 Purpose
Section 3 sets out the purpose of the instrument, which is to specify the fees payable for an application made under subsection 46(1) of the GEMS Act to vary a model’s registration.
4 Power
Section 4 provides that subsection 77(1) of the GEMS Act is the legislative power under which this instrument is made. Subsection 77(1) enables the GEMS Regulator to charge fees for services provided by, or on behalf of, the GEMS Regulator in the performance of his or her functions.
5 Interpretation
Section 5 clarifies that any terms in the instrument that are defined in the GEMS Act have the same meaning, unless otherwise specified.
6 Application
Section 6 sets out that the instrument applies to an application made under subsection 46(1) of the GEMS Act to vary a model’s registration.
Part 2 Fees
7 Fees
Section 7 requires a person making an application to vary a model’s registration, to pay a fee to the GEMS Regulator of $250.
Overview
The Greenhouse and Energy Minimum Standards (Variation of a Model’s Registration – Application Fees) Instrument 2014 was introduced to specify the fees payable for applications to the Greenhouse and Energy Minimum Standards Regulator to vary the registration of a model of a product. This instrument complements the Greenhouse and Energy Minimum Standards Act 2012 (GEMS Act) by enabling the Regulator to charge fees for the services provided in relation to these applications. The purpose of the Instrument is to ensure that the costs of processing these applications are recovered, thereby supporting the ongoing effectiveness of the GEMS Act. The Australian Government consulted extensively with Australian businesses, New Zealand, and state and territory governments in developing the GEMS Act, seeking feedback on various aspects including the fees structure to cover both registration and compliance monitoring costs. This consultation helped shape the legislative framework to ensure it met the needs of all stakeholders while maintaining a balance between cost recovery and regulatory efficiency.
Scope and Application
The Greenhouse and Energy Minimum Standards (Variation of a Model’s Registration – Application Fees) Instrument 2014 applies to any person seeking to vary an existing registration under section 46(1) of the Greenhouse and Energy Minimum Standards Act 2012. This Act pertains to the regulation of products covered by Greenhouse and Energy Minimum Standards determinations, which includes a wide range of products across various industries. The instrument sets forth the fees associated with applications to modify an existing registration to include additional models within the same family of products, and it applies across the Commonwealth of Australia. The application fee specified is $250, which is designed to cover the processing costs incurred by the Greenhouse and Energy Minimum Standards Regulator. Notably, this fee does not include the costs of compliance monitoring, which are not considered significant in relation to the processing of these applications. The instrument is a legislative tool under section 77(1) of the GEMS Act, which authorises the Regulator to charge fees for services. The instrument does not specify any exclusions or exemptions from the application of these fees, and its application is not extended or restricted by any subordinate instruments beyond the scope of the GEMS Act itself.
Key Provisions
The primary operative sections of this instrument establish the fees for applications to vary the registration of a model under the Greenhouse and Energy Minimum Standards (GEMS) Act 2012. Specifically, section 7 sets out the fee requirement, stipulating that an application to vary a model's registration must be accompanied by a fee of $250 to the GEMS Regulator (section 7). This fee is intended to cover the processing costs associated with the application and is not subject to GST as it does not constitute consideration for GST purposes (section 64(1)(c)).
The obligations imposed by this instrument primarily concern the payment of the specified fee. Under section 7, any person making an application to vary a model’s registration must pay this fee to the GEMS Regulator. This obligation is clear and straightforward, ensuring that the GEMS Regulator is compensated for the administrative burden of processing such applications. Additionally, the instrument specifies that the fee is equivalent to the registration processing costs, ensuring transparency in the fee structure (section 7).
In terms of consequences for non-compliance, the instrument itself does not explicitly outline offences, penalties, or other consequences for failing to pay the required fee. However, under the GEMS Act, there are broader provisions that may apply. For example, section 142 of the GEMS Act provides for offences and penalties related to the supply, offer to supply, or use of non-registered GEMS products, which could potentially include administrative or financial penalties. Nevertheless, the specific consequences for failing to pay the fee set out in this instrument would likely need to be pursued under the general administrative or enforcement provisions of the GEMS Act.
This instrument thus plays a crucial role in ensuring that the GEMS Regulator can efficiently manage the registration process by recovering costs directly related to the application processing. It underscores the importance of compliance with the specified fee to maintain the integrity and effectiveness of the GEMS registration system.