Overview

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2010 (No. 1) were enacted to align the fees and charges for the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) with the Consumer Price Index (CPI) and the Worker Price Index (WPI) for the year 2010-2011. This was done in accordance with the established cost recovery policy of NICNAS, which operates on a fee-for-service basis for the assessment of new chemicals, as well as a levy across the broader industry to fund other programs. The amendments were made under the authority of Section 111 of the Industrial Chemicals (Notification and Assessment) Act 1989, which allows the Governor-General to make regulations consistent with the Act. The objective of these amendments was to ensure that NICNAS had sufficient funding to discharge its obligations under the Act, including the assessment of new and existing chemicals, stakeholder outreach, and compliance activities. The amendments were reviewed and approved by the NICNAS Industry Government Consultative Committee and the Parliamentary Secretary for Health, and were made effective from 1 July 2010. The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2010 (No. 1) were enacted by the Governor-General under the authority of the Industrial Chemicals (Notification and Assessment) Act 1989. The Act provides for a national system of notification and assessment of industrial chemicals to protect the Australian people and the environment, and to provide information and recommendations about industrial chemicals to relevant bodies. The Regulations were made to increase all fees and charges for NICNAS for 2010-11, in line with the cost recovery policy of NICNAS, which operates on a fee-for-service basis. The amendments were reviewed and approved by the NICNAS Industry Government Consultative Committee and the Parliamentary Secretary for Health, and were made effective from 1 July 2010. The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Scope and Application

The Industrial Chemicals (Notification and Assessment) Act 1989 (the Act) provides for a national system of notification and assessment of industrial chemicals in Australia. The Act applies to all industrial chemicals introduced into Australia, encompassing the protection of the Australian people and the environment, the provision of information and recommendations to relevant bodies, and the enforcement of national standards for cosmetics. The Act extends its application across the Commonwealth, state, and territory jurisdictions, facilitating a cohesive national regulatory framework. The Act permits the Governor-General to make regulations that are not inconsistent with the Act, including those necessary for carrying out or giving effect to the Act, such as the Industrial Chemicals (Notification and Assessment) Amendment Regulations 2010 (No. 1). These regulations prescribe fees for specified services and are designed to increase all fees and charges for the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for the 2010-11 period by 3.6 per cent, rounded to the nearest dollar. The increase was determined using an industry/government agreed activity based costing model and was approved by the NICNAS Industry Government Consultative Committee and the Parliamentary Secretary for Health. The Regulations apply to all fees and charges specified in the Industrial Chemicals (Notification and Assessment) Regulations 1990, with no exclusions or exemptions outlined in the text.

Key Provisions

The Industrial Chemicals (Notification and Assessment) Amendment Regulations 2010 (No. 1) (referred to as the Regulations) amend the Industrial Chemicals (Notification and Assessment) Regulations 1990 (the Principal Regulations). These Regulations are designed to increase the fees and charges associated with the National Industrial Chemicals Notification and Assessment Scheme (NICNAS) for the financial year 2010-11. The primary changes include amendments to subregulations 11AB(1) and 11AB(2), regulation 13, and Schedule 2 of the Principal Regulations. All these amendments involve a 3.6 per cent increase in fees and charges, rounded to the nearest dollar (Regulation 3, Schedule 1, Items [1] to [4]). The Act mandates a national system for the notification and assessment of industrial chemicals, aimed at protecting the Australian people and the environment, providing information to relevant authorities, and fulfilling international obligations. The Regulations, made under section 111 of the Act, are designed to ensure NICNAS can adequately fund its operations and meet its statutory obligations (Section 111). These obligations include the assessment of new chemicals, stakeholder outreach, compliance activities, and the assessment of existing chemicals. The Regulations are made to align with the government’s cost recovery policy, ensuring that NICNAS operates on a fee-for-service basis. Entities and individuals governed by the Act and the Regulations are required to pay the increased fees and charges as stipulated. For instance, entities seeking to register new chemicals under Tier 2 and Tier 3 must comply with the new fee structures as outlined in Items [1] and [2] of Schedule 1. Additionally, those applying for certificates for new chemical assessments must adhere to the increased fees specified in Item [3]. The broader base of industry is also subject to the increased levy as set out in Item [4] of Schedule 1. These fee increases were approved after consultation with the NICNAS Industry Government Consultative Committee and the Parliamentary Secretary for Health. Breach of the provisions outlined in the Regulations could result in civil or criminal consequences, though specific offences and penalties are not detailed in the explanatory statement. Generally, non-compliance with industrial chemical regulations can lead to fines or other penalties under the Act. The adequacy of the cost recovery is reviewed annually using an industry/government agreed activity-based costing model, and without sufficient funding, NICNAS may be unable to fulfil its statutory obligations effectively. The Regulations are intended to ensure that NICNAS has the necessary financial resources to operate efficiently and meet its regulatory objectives.