Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1)

Administered by Department of Health, Disability and Ageing

Legislation au F2007L01341 Regulations Not in force Legislative Instrument

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Explanatory STATEMENT

 

Select Legislative Instrument 2007 No. 146

 

Subject - Industrial Chemicals (Notification and Assessment) Act 1989

 

 Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1)

 

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 provides 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 that the regulations may prescribe fees for specified services.  Subsections 110(2) to 110(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 purpose of the Regulations is to:

  • increase all fees and charges for the National Industrial Chemicals 
    Notification and Assessment Scheme (NICNAS) for 2007-08;
  • correct fees for self assessment applications where rounding from several years’ fee increases have created a one dollar misalignment ;
  • correct errors in existing fees for applications for standard and limited assessment categories under an approved foreign scheme ; and
  • introduce a new fee under an approved foreign scheme for the polymer of low concern (PLC).

 

NICNAS operates on a fee for service basis for the assessment of new chemicals and applies a levy (NICNAS Registration) across the broader base of industry to fund all other programs such as compliance activities and the assessment of existing chemicals. Without sufficient funding including adequate operational reserves, NICNAS will be unable to satisfactorily discharge its mandatory obligations under the Act.  In addition, new chemical assessment activity will not meet the Government’s cost recovery policy.  The increase in fees and charges will result in a reserve balance position that meets the agreed operational reserve target. 

 

Existing NICNAS fees and charges will be increased by the Consumer Price Index/Wage Cost Index  indexation of 3.83% (rounded to the nearest dollar) commencing 1 July 2007.  The last increases to NICNAS fees and charges were made on 1 July 2006. 

 

Current fees for self assessment applications require amendment to correct a one dollar misalignment arising from rounding from several years’ fee increases.  Self-assessment charges are to be 60% of the full application fee for the particular assessment category.   Correction is also required to existing fees for applications for standard and limited assessment categories under an approved foreign scheme in order to align the fees for notifications under the foreign scheme provisions to be 60% of the normal fee, which currently operates on a rebate basis and is agreed with stakeholders.

 

Section 43 of the Act provides that the Minister may approve a specified foreign scheme for the purposes of the Act and that a report of a specified kind that is made under the foreign scheme is to be the approved report in relation to the chemical.   Paragraph 110(1)(p) of the Act provides that the regulations may prescribe fees for a new industrial chemical notified and assessed under an approved foreign scheme.  No fees are currently prescribed for polymers of low concern under approved foreign schemes and the Regulations introduce such a fee, enabling industry access to a wider range of assessment options. 

 

The fee increase was arrived at by agreement with the NICNAS’s Industry Government Consultative Committee (IGCC). 

 

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 is a legislative instrument for the purposes of the Legislative Instruments Act 2003. 

 

The  Regulations commence on 1 July 2007.


 

 

ATTACHMENT  

 

Details of the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1)

 

Regulation 1 provides for the Regulations to be referred to as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1).

 

 Regulation 2 provides for the Regulations to commence on 1 July 2007.

 

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

 

Schedule 1 - Amendments

 

 Item [1]

This item amends subregulation 11AB(1) to increase the fee by 3.83% (rounded to the nearest dollar).  There are three Tiers for NICNAS registration.  The fee relates to the registration charge amount for Tier 2 annual registration.   

 

 Item [2]

This item amends subregulation 11AB(2) to increase the fee by 3.83% (rounded to the nearest dollar).  The fee relates to the registration charge amount for Tier 3 annual registration. 

 

 Item [3]

These fees relate to New Chemical certificate assessment categories. 

This item amends paragraphs 13(2)(a) to (c) and 13(2A)(c) of the Principal Regulations to increase the fees by 3.83% (rounded to the nearest dollar). 

 

This item also corrects a consequential one dollar misalignment in paragraphs 13(2A)(a) and 13(2A)(b) arising from rounding from several years’ fee increases. 

 

This item also increases the fees specified in paragraphs 13(3)(a) and 13(3)(b) to correct existing fees for applications for standard and limited assessment categories under an approved foreign scheme in order to align the fees for notifications under the foreign scheme provisions to be 60% of the normal fee. 

 

 Item [4]

This item introduce a new fee at paragraph 13(3)(c) for polymer of low concern notifications lodged under an approved foreign scheme. The new fee will be 60% of the normal fee for polymers of low concern. 

 

 Item [5]

This item amends regulation 13 of the Principal Regulations to increase the fee specified in paragraph 13(4)(a) by 3.83% (rounded to the nearest dollar).  This fee relates to secondary notification of new industrial chemicals, which are not polymers of low concern. 

 

 Item [6]

This item amends regulation 13 of the Principal Regulations to increase the fees specified in paragraph 13(4)(b) by 3.83% (rounded to the nearest dollar).  This fee relates to secondary notification of new industrial chemicals, which are polymers of low concern. 

 

 

 Item [7]

This item substitutes  Schedule 2 in the Principal Regulations to increase the New Chemical assessment fees and charges in the Schedule by 3.83% (rounded to the nearest dollar).  This increases all fees and charges specified in the Schedule.

 

 

 

 

Overview

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1) were introduced to address the need for updated fees and charges under the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for the financial year 2007-08. Enacted by the Governor-General under the authority granted by Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989, these regulations aimed to correct discrepancies in existing fees, introduce a new fee category, and ensure that NICNAS could meet its financial obligations and cost recovery policy. The policy objective of the Act is to establish a national system for the notification and assessment of industrial chemicals, thereby protecting public health and the environment, facilitating information sharing among government bodies, and ensuring compliance with international agreements. The Regulations increased all fees and charges for NICNAS by the Consumer Price Index/Wage Cost Index indexation of 3.83%, effective from 1 July 2007. They also corrected a one-dollar misalignment in self-assessment application fees arising from previous years' rounding errors and adjusted the fees for standard and limited assessment categories under an approved foreign scheme. Furthermore, the Regulations introduced a new fee for polymers of low concern under approved foreign schemes, providing industry with additional assessment options. These changes were made in consultation with the NICNAS Industry Government Consultative Committee, ensuring alignment with stakeholder agreements and operational needs.

Scope and Application

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1) are subordinate legislation made under the Industrial Chemicals (Notification and Assessment) Act 1989, which establishes a national system for the notification and assessment of industrial chemicals in Australia. The Act applies to individuals, companies, and other entities involved in the manufacture, import, or supply of industrial chemicals within Australia. The Act's purpose is to protect public health and the environment, provide information and recommendations about industrial chemicals to governmental bodies, and ensure compliance with international agreements. The Act operates on a national level, applying across all Australian jurisdictions. The Regulations primarily address the adjustment of fees and charges for services provided by the National Industrial Chemicals Notification and Assessment Scheme (NICNAS), which operates on a fee-for-service basis. The Regulations increase existing fees and charges by 3.83% (rounded to the nearest dollar) to ensure NICNAS can meet its operational obligations and recover costs. Additionally, the Regulations correct misalignments and errors in existing fees, and introduce a new fee for polymers of low concern under approved foreign schemes. The Regulations do not specify any exclusions or thresholds beyond what is already provided for in the Act. The amendments outlined in the Regulations will come into effect on 1 July 2007.

Key Provisions

The main operative sections of the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1) focus on updating the fees associated with the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for the 2007-08 period. Regulation 3 amends the Industrial Chemicals (Notification and Assessment) Regulations 1990 (Principal Regulations) to increase fees by 3.83% (rounded to the nearest dollar), aligning with the Consumer Price Index/Wage Cost Index indexation. This increase applies to various categories, including Tier 2 and Tier 3 annual registration fees (Items [1] and [2]), new chemical certificate assessment fees (Items [3] and [5]), and secondary notification fees for both polymers and non-polymers of low concern (Items [5] and [6]). Additionally, the Regulations introduce a new fee for polymer of low concern notifications under an approved foreign scheme (Item [4]) and correct misalignments and errors in existing fees (Items [3] and [6]). The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1) impose several obligations on the parties governed by the Act. Firstly, they mandate that all fees for NICNAS services be increased by 3.83%, effective from 1 July 2007, to ensure adequate funding for the scheme's operations. The Regulations also require the correction of previously rounded fees that resulted in a one-dollar misalignment and adjustments to the fees for standard and limited assessment categories under approved foreign schemes to ensure they are 60% of the normal fee. Furthermore, the introduction of a new fee for polymer of low concern notifications under approved foreign schemes aligns with the scheme's assessment options, facilitating industry access. The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2007 (No. 1) do not explicitly outline specific offences, penalties, or consequences for non-compliance within the text. However, failure to adhere to the fee structures and requirements stipulated in the Regulations could result in legal consequences under the Industrial Chemicals (Notification and Assessment) Act 1989. This might include actions taken by the Minister or relevant authorities to enforce compliance, potentially leading to administrative penalties or other legal measures to ensure the proper funding and operational integrity of the NICNAS. The exact penalties would be governed by the overarching Act and applicable regulations.

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