Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 2)

Administered by Department of Health, Disability and Ageing

Legislation au F2006L01791 Regulations Not in force Legislative Instrument

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Explanatory STATEMENT

 

Select Legislative Instrument 2006 No. 155

 

Minute No. 17 of 2006 - Parliamentary Secretary to the Minister for Health and Ageing

 

Subject - Industrial Chemicals (Notification and Assessment) Act 1989

 

 Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 2)

 

Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989 (the Act) provides, in part, that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.  

 

The object of the Act is to provide for a national system of notification and assessment of industrial chemicals for the purposes of aiding in the protection of the Australian people and the environment; providing information and making recommendations about industrial chemicals to Commonwealth, State and Territory bodies; giving effect to Australia’s obligations under international agreements; and collecting statistics in relation to these chemicals.

 

Subsection 110(1) of the Act provides, in part, that the regulations may prescribe fees for specified services.  Specifically, paragraphs 110(1)(ua) and 110(1)(ub) specify that the regulations may prescribe registration and renewal fees. Subsections 110(2) to (6) set out details for when fees are due, the payment schedules and other arrangements. The fees for services defined in section 110 are prescribed in the Industrial Chemicals (Notification and Assessment) Regulations 1990.

 

The Regulations increase registration charges, which are one component of the overall fees and charges structure for the National Industrial Chemicals Notification and Assessment Scheme (NICNAS), for 2006-07. Registration charges only apply to those importers or manufacturers whose value of relevant chemicals exceeds $500,000 in a registrable year.  

 

NICNAS registration charges are increased by 3.9% (rounded to the nearest dollar) commencing 1 July 2006.  This increase is consistent with the increase in other NICNAS fees and new chemical charges for 2006-07 approved by the Executive Council on 13 April 2006.  The last increases to NICNAS registration charges were made on 1 July 2004 and the proposed increase would enable the NICNAS to continue to meet the Government’s requirement that it operate on a full cost-recovery basis. 

 

All increases in NICNAS fees and charges, including CPI/WCI indexation, are agreed in consultation with NICNAS’s Industry Government Consultative Committee (IGCC).  The IGCC supports the proposed 3.9% increase.

 

Details of the Regulations are set out in the Attachment.

 

The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.

 

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. 

 

The Regulations commence on 1 July 2006.

 

Authority: Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989


ATTACHMENT  

 

Details of the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 2)

 

Regulation 1 provides for the Regulations to be referred to as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 2).

 

Regulation 2 provides for the Regulations to commence on 1 July 2006.

 

Regulation 3 provides for Schedule 1 to amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations).

 

Schedule 1 – Amendments

The amendments relate to NICNAS registration charges and are only applicable to those importers and manufacturers whose value of relevant industrial chemicals exceeds $500,000 in any registrable year.  The registration charge has two tiers for cost recovery arrangements consistent with the cost recovery policy of user pays.  The first is referred to as Tier 2 and relates to an annual import or manufacture value of $500,000 to $4,999,999.  The second is referred to as Tier 3 and relates to all values above $5,000,000.  The NICNAS registration cycle is from 1 September of one year to 31 August the next year. 

 

Item [1]

This item amends subregulation 11AB(1) of the Principal Regulations to increase the registration charge by 3.9% (rounded to the nearest dollar) to $1099 for Tier 2.  This amount would apply in relation to a registration year that begins on or after 1 September 2006. 

 

Item [2]

This item amends subregulation 11AB(2) of the Principal Regulations to increase the registration charge by 3.9% (rounded to the nearest dollar) to $8186 for Tier 3.  This amount would apply in relation to a registration year that begins on or after 1 September 2006. 

 

Item [3]

This item amends the note to regulation 11AB of the Principal Regulations to specify the date on which the new registration charges come into effect, namely at the commencement of the next NICNAS registration cycle.  Therefore, the registration charges introduced through proposed items [1] and [2] above would apply in relation to the registration year that begins on or after 1 September 2006.

 

The previous charge, of $1058 for Tier 2 and $7879 for Tier 3, continues to apply in relation to the registration year that began on 1 September 2005.  These charges remained unchanged from the registration year that began on 1 September 2004. 

 

 

 

 

Overview

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 2) were introduced to address the need for updated fees within the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) to ensure it operates on a full cost-recovery basis. Enacted under Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989, these Regulations were made by the Governor-General, following consultation with the Industry Government Consultative Committee (IGCC). The primary objective of these Regulations is to increase the registration charges for industrial chemicals, specifically targeting importers and manufacturers whose value of relevant chemicals exceeds $500,000 in a registrable year. The increase of 3.9% aligns with other NICNAS fees and charges approved by the Executive Council and is set to commence on 1 July 2006. This increment ensures the NICNAS can meet its financial requirements while maintaining the policy of user pays and adhering to international obligations.

Scope and Application

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 2) apply to the Industrial Chemicals (Notification and Assessment) Act 1989, which is a Commonwealth Act. The Act applies to any person or entity involved in the importation or manufacture of industrial chemicals within Australia, specifically targeting those whose value of relevant chemicals exceeds $500,000 in a registrable year. The Act aims to protect the Australian people and the environment by regulating the notification and assessment of industrial chemicals, fulfilling Australia’s obligations under international agreements, and collecting related statistics. The Act applies nationally across Australia and extends to all chemicals that fall under its definition, irrespective of state or territory boundaries. The Regulations, which amend the Industrial Chemicals (Notification and Assessment) Regulations 1990, introduce a 3.9% increase in registration charges for those importers and manufacturers whose chemical value exceeds specified thresholds. These changes are effective from 1 July 2006 and are part of the National Industrial Chemicals Notification and Assessment Scheme (NICNAS), which operates on a full cost-recovery basis. The Regulations do not specify any exclusions or exemptions, and the increased fees are aligned with broader NICNAS fee adjustments and were agreed upon through consultation with the Industry Government Consultative Committee.

Key Provisions

The main operative sections of the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2006 (No. 2) pertain to the amendment of registration charges for industrial chemicals under the National Industrial Chemicals Notification and Assessment Scheme (NICNAS). Regulation 3 and Schedule 1 of the Regulations amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 to increase the registration charges by 3.9% for the 2006-07 financial year. Specifically, Item [1] increases the Tier 2 registration charge from $1058 to $1099, and Item [2] increases the Tier 3 registration charge from $7879 to $8186, both rounded to the nearest dollar. These new charges apply to the registration year beginning on or after 1 September 2006. The Regulations impose obligations on importers and manufacturers of industrial chemicals who exceed an annual import or manufacture value of $500,000. These entities must pay the increased registration charges as per the new Tier 2 or Tier 3 rates, depending on their respective annual values. The amendments are structured to ensure that NICNAS can operate on a full cost-recovery basis, which aligns with the user pays policy. This cost-recovery mechanism ensures that the fees collected are sufficient to cover the operational costs of NICNAS. Breach of the provisions in the Regulations could lead to various civil and administrative consequences. For instance, failure to pay the increased registration charges as stipulated could result in penalties or legal actions by the NICNAS to recover the due fees. However, the specific penalties or consequences for non-compliance are not detailed within the text of the Regulations. The primary focus of the Regulations is on ensuring that the registration charges are appropriately adjusted to maintain the operational viability of NICNAS, thus indirectly implying that compliance with these financial obligations is critical for the continued function of the scheme.

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