Explanatory STATEMENT
Select Legislative Instrument 2008 No. 115
Industrial Chemicals (Notification and Assessment) Act 1989
Industrial Chemicals (Notification and Assessment) Amendment Regulations 2008 (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 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 New Chemical (those chemicals that are not listed on the Australian Inventory of Chemical Substances) fees and charges (only) for the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for 2008-09. The adequacy of cost recovery aspects of NICNAS are reviewed annually using an industry/government agreed activity based costing model. Based on the anticipated end of year financial position, other NICNAS registration fees and charges will remain unchanged from 2007-08.
Consistent with the Government’s cost recovery policy, 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.
Existing NICNAS New Chemicals fees and charges are to be increased by the CPI/WCI indexation of 3.9 per cent (rounded to the nearest dollar) commencing
1 July 2008. The last increases to NICNAS fees and charges were made with effect on 1 July 2007.
The fee increase was arrived at by agreement with the NICNAS’s Industry Government Consultative Committee.
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 2008.
ATTACHMENT
Details of the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2008 (No. 1)
Regulation 1 provides for the Regulations to be referred to as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2008 (No. 1).
Regulation 2 provides for the Regulations to commence on 1 July 2008.
Regulation 3 provides for Schedule 1 to amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations).
Schedule 1 - Amendments
Item [1]
These fees relate to New Chemical certificate assessment categories.
This item amends regulation 13 of the Principal Regulations to increase the fees by
3.9 per cent (rounded to the nearest dollar).
Item [2]
This item substitutes Schedule 2 in the Principal Regulations to increase the New Chemical assessment fees and charges in the Schedule by 3.9 per cent (rounded to the nearest dollar).
Fees and charges specified in the Schedule that relate to the following NICNAS Registration activities remain unchanged:
- administrative fees for new NICNAS Registrations (paragraph 110(1)(ua); and
- administrative fees for NICNAS Registration renewals and late renewals (paragraph 110(1)(ub).
Overview
The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2008 (No. 1) were introduced to address the need for updated fees and charges within the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for the year 2008-09. Enacted under section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989, the regulations were made to ensure that NICNAS could effectively fulfil its obligations in protecting public health and the environment while complying with international agreements. The Act was designed to establish a national system for the notification and assessment of industrial chemicals, providing crucial information and recommendations to relevant governmental bodies and collecting necessary statistics. The regulations specifically target the indexation of fees for new chemicals by 3.9 per cent, as agreed upon by the NICNAS Industry Government Consultative Committee, while maintaining the existing fees for broader registration activities to ensure adequate funding for NICNAS's operations. These amendments are crucial for maintaining the scheme’s financial stability and its ability to meet its statutory obligations.
Scope and Application
The Industrial Chemicals (Notification and Assessment) Act 1989 provides a framework for the national notification and assessment of industrial chemicals in Australia, aiming to protect the health of Australians and the environment, and to assist relevant bodies in making informed decisions about the handling and use of industrial chemicals. This Act applies to all industrial chemicals manufactured, imported, or used within Australia, and encompasses a wide range of industries and entities that deal with these chemicals. It includes provisions for the collection of data and statistics, compliance monitoring, and the dissemination of information about chemical hazards and safety. The Act is complemented by the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2008 (No. 1), which primarily focus on adjusting fees for new chemical assessments, ensuring that the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) can continue to operate effectively. These regulations are designed to index the fees by the Consumer Price Index/Wholesale Price Index (CPI/WCI) of 3.9 percent, effective from 1 July 2008, as agreed upon by the NICNAS Industry Government Consultative Committee. The Act and its associated regulations establish a comprehensive system that mandates the notification and assessment of industrial chemicals, thereby fulfilling Australia's international obligations and providing a mechanism for the ongoing oversight and management of chemical risks.
Key Provisions
The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2008 (No. 1) serve to amend the fees associated with the assessment and notification of new industrial chemicals in Australia under the Industrial Chemicals (Notification and Assessment) Act 1989 (the Act). These amendments, detailed in Schedule 1, specifically pertain to the New Chemical certificate assessment categories and the fees and charges outlined in the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations) (Regulations 13, Item [1] and Item [2]). The amendments involve an indexation adjustment of 3.9 per cent, rounded to the nearest dollar, which is intended to reflect the Consumer Price Index/Wholesale Commodity Index (CPI/WCI) for the financial year 2008-09.
Entities and individuals subject to the Act must comply with the new fee structures set out in the amended Regulations. For instance, those seeking to notify new chemicals for assessment under the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) will need to account for the updated fees as per the regulations. This includes both the increased fees for the assessment of new chemicals and the maintenance of the existing fees for administrative activities related to NICNAS Registrations and their renewals. The regulation of fees is essential for ensuring that NICNAS can continue to operate effectively and fulfill its statutory obligations, which include the protection of public health and the environment, and the facilitation of compliance with international agreements.
Failure to comply with the new fee structures as outlined in the Regulations may have legal ramifications. Although the Regulations themselves do not specify particular offences or penalties for non-compliance, breaches of the Act could potentially lead to legal actions under the overarching legislation. Non-compliance with the Act's provisions, including the payment of prescribed fees, could be viewed as contravening the Act's requirements, which might result in enforcement actions by the relevant authorities. Such actions could encompass administrative penalties, fines, or other legal consequences as deemed appropriate by the courts or regulatory bodies.
The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2008 (No. 1) are designed to ensure that NICNAS maintains adequate funding to carry out its mandated functions. By adjusting fees in line with the CPI/WCI, the Regulations aim to achieve a fair and sustainable financial model for the scheme. This approach helps to guarantee that NICNAS can continue to provide essential services such as the assessment of new chemicals, compliance activities, and the overall protection of public health and the environment. The amendments are a reflection of the ongoing commitment to maintaining a balanced and effective regulatory framework for industrial chemicals in Australia.