EXPLANATORY STATEMENT
Issued under the authority of the Assistant Minister for Health and Aged Care
Industrial Chemicals Charges (Customs) Act 2019
Industrial Chemicals Charges (Customs) Amendment (2026 Measures No. 1) Regulations 2026
Purpose and Operation
The Industrial Chemicals Charges (Customs) Amendment Regulations 2026 (the Amendment Regulations) amend the Industrial Chemicals Charges (Customs) Regulations 2020 (the Principal Regulations) to implement a temporary, one-off 90% reduction to registration charges under the Australian Industrial Chemicals Introduction Scheme (AICIS).
The Amendment Regulations provide that:
- for the 2026–27 registration year (1 September 2026 to 31 August 2027), registration charges are reduced by 90% across all existing registration levels, except level 1 which do not pay a charge.
- For the 2027-28 registration year, the charges revert to the pre‑existing (2025–26) charge settings, unless further amendments are made.
The Amendment Regulations do not change:
- the existing 8‑level registration structure;
- how introduction values are calculated and thus registration levels are determined; or
- any other operational aspects of the AICIS scheme
Introduction value refers to the total value of industrial chemicals introduced (imported or manufactured) in the previous financial year.
The amendments are administrative and time‑limited and are intended to reduce accumulated surplus funds in the Industrial Chemicals Special Account while maintaining the long‑term sustainability of the scheme.
Background
The IC Act establishes the AICIS as the national regulatory framework for the introduction (importation or manufacture) of industrial chemicals in Australia.
Persons who import or manufacture industrial chemicals in Australia and are required to register under AICIS are referred to as introducers. The full registration cost payable by introducers consists of a flat fee payable by all introducers, plus a charge that varies according to the value of industrial chemicals introduced (imported or manufactured) in the previous financial year. There are eight registration levels. Level 1 registrants, with an introduction value less than $50,000, pay the flat fee but do not pay a charge.
The Industrial Chemicals Charges (Customs) Act 2019 (the IC Charges Act) provides for the imposition of registration charges payable by introducers of industrial chemicals, with registration charges (levies) payable annually based on the value of chemicals introduced.
A review of AICIS cost recovery arrangements identified that the Industrial Chemicals Special Account had accumulated surplus cash above target levels. The Government has decided to implement a one‑off 90% reduction in registration charges for the 2026–27 registration year to return reserves to appropriate levels, while preserving the integrity of the existing regulatory framework. The measure forms part of a broader package of amendments to AICIS fees and charges, with changes to registration fee and other fee for services for the 2026-27 registration year being implemented separately through amendments to the Industrial Chemicals (Fees and Charges) Amendment (Application Fees) Rules.
Authority
Section 13 of the Industrial Chemicals Charges (Customs) Act 2019 provides that the Governor‑General may make regulations prescribing matters required or permitted by that Act, or necessary or convenient for carrying out or giving effect to the Act.
Subsection 33(3) of the Acts Interpretation Act 1901 provides that the power to make an instrument includes the power to amend or vary that instrument in the same manner.
The Amendment Regulations are made under these provisions.
Commencement
The sections 1 to 4 of Schedule 1, Part 1 of the Amendment Regulations commence on the day after they are registered on the Federal Register of Legislation. Schedule 1, Part 2 commences on 1 July 2027.
Consultation
AICIS published a consultation paper on 10 April 2026 on the proposed fees and charges for 2026-27. Eight submissions were received, including three from industry associations representing businesses in the industrial chemicals sector and five from individual businesses (introducers). All stakeholder submissions supported the proposed temporary one-off 90% reduction to the registration levy charges in 2026-27. Some stakeholders raised concerns about reinstating pre-2026-27 charges in 2027-28. Some stakeholders also raised concerns about aspects of the levy design, including the introduction value calculation method and the effect of inflation on movement between registration level thresholds. A summary of stakeholder feedback, and AICIS’s responses, is set out in the AICIS Cost Recovery Implementation Statement (CRIS) 2026–27.
General
The Amendment Regulations are a legislative instrument for the purposes of the Legislation Act 2003.
Details of the Amendment Regulations are set out in Attachment A and explains the purpose and effect of these amendments.
The Amendment Regulations are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A statement of compatibility with human rights is set out in Attachment B.
ATTACHMENT A
Details of the Industrial Chemicals Charges (Customs) Amendment (2026 Measures No. 1) Regulations 2026
Section 1 - Name
This section provides that the name of the instrument is the Industrial Chemicals Charges (Customs) Amendment (2026 Measures No. 1) Regulations 2026 (the Amendment Regulations).
Section 2 - Commencement
This section provides that the sections 1 to 4 of Schedule 1, Part 1 of the Amendment Regulations commence on the day after they are registered on the Federal Register of Legislation. Schedule 1, Part 2 commences on 1 July 2027.
Section 3 - Authority
This section provides that the Amendment Regulations are made under the Industrial Chemicals Charges (Customs) Act 2019.
Section 4 - Schedules
This section provides that each instrument specified in a Schedule to the Amendment Regulations is amended or repealed as set out in the applicable Schedule.
Schedule 1, Part 1 – Amendments commencing the day after registration of the instrument
Schedule 1, Part 1 amends subsection 5(2) of the Principal Regulations to provide reduced registration charges for the registration year beginning on 1 September 2026.
The amendments apply a 90% reduction to existing registration charges while retaining the current registration level structure.
The reduced charges for 2026-27 registration year are:
Registration level (prior year introduction value) | Charge ($) |
$0 – $49,999 | Nil |
$50,000 – $99,999 | 10 |
$100,000 – $249,999 | 20 |
$250,000 – $499,999 | 35 |
$500,000 – $2,999,999 | 210 |
$3,000,000 – $4,999,999 | 375 |
$5,000,000 – $14,999,999 | 2,450 |
$15,000,000 or more | 3,500 |
These reduced charges apply only for the 2026–27 registration year.
Schedule 1, Part 2 – Amendments commencing on 1 July 2027
For the registration year beginning on 1 September 2027, registration charges amounts return to their pre‑existing (2025-26) levels.
The restored charges for the 2027-28 registration year will be:
Registration level (prior year introduction value) | Charge ($) |
$0 – $49,999 | Nil |
$50,000 – $99,999 | $65 |
$100,000 – $249,999 | $180 |
$250,000 – $499,999 | $350 |
$500,000 – $2,999,999 | $2,100 |
$3,000,000 – $4,999,999 | $3,750 |
$5,000,000 – $14,999,999 | $24,500 |
$15,000,000 or more | $35,000 |
The Amendment Regulations include application provisions to clarify that:
- the reduced charges apply only to the registration year beginning on 1 September 2026; and
- the restored charge settings apply to registration years beginning on or after 1 September 2027.
The amendments do not affect:
- the requirement to register under AICIS;
- the method for calculating introduction value; or
- the structure or number of registration levels
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Overview of the Amendment Regulations
The Amendment Regulations amend the Industrial Chemicals (Charges) Regulations 2020 (the Principal Regulations) to update charges for the 2026-27 registration year.
The amendments reduce the registration charges from the day after registration of the amending instrument.
Human rights implications
The Amendment Regulations amend charges and do not otherwise change the operation of the Principal Regulations.
The reduction in charges do not engage rights such as the right to health in Article 12(1) of the International Covenant on Economic, Social and Cultural Rights. The charges are regulatory in nature, are set consistently with cost recovery principles, and are necessary to ensure the sustainable operation of the national industrial chemicals' regulatory framework.
The reduction in charges do not restrict access to essential goods or services and apply uniformly to regulated entities. Accordingly, the amendments are reasonable, necessary and proportionate.
Conclusion
The Amendment Regulations are compatible with human rights as they do not raise any human rights issues.
The Hon Rebecca White MP
Assistant Minister for Health and Aged Care