EXPLANATORY STATEMENT
Select Legislative Instrument 2012 No. 305
Subject - Motor Vehicle Standards Act 1989
Motor Vehicle Standards Amendment Regulation 2012 (No. 1)
The Motor Vehicle Standards Act 1989 (the Act) establishes a regulatory framework to ensure uniform vehicle standards apply to new vehicles when they begin to be used in transport in Australia, and to regulate the first supply to the market of used imported vehicles. Administering the Act requires a decision to be made on each application received for new vehicles and imported used vehicles proposed for use in Australia.
Section 42 of the Act provides, in part, that the Governor‑General may make regulations 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.
Under the Act the Minister may delegate to the Administrator or to an Associate Administrator, all or any of the Minister’s functions or powers under the Act, other than eight specified exemptions. However, conflictingly, the Motor Vehicle Standards Regulations 1989 (the Regulations) stipulate that the Minister may only delegate his powers to the Administrator or to a SES employee in the Department.
As a result of the requirement for an Associate Administrator to be a SES officer, all powers delegated under the Regulations reside with the individual appointed as the Administrator. Associate Administrators able to be appointed under the Act are unable to hold a range of operationally specific powers under the Regulations which would otherwise enable the Department to provide a better service to the public and vehicle manufacturers.
The requirement for Minister’s functions and powers under the Regulations to only be delegated to a SES employee in the Department has remained unchanged since 1989 when the decisions required to be made by the Administrator were significantly less in complexity and volume. This results in the single Administrator having to deal with every application for approval (in excess of 30,000 annually), regardless of the level of complexity, sensitivity or risk attached.
The Regulation amends the Principle regulations and provides that the Minister may delegate all or any of the Minister’s powers under the Regulations to the Administrator or to an Associate Administrator. This will enable Associate Administrators to make decisions concerning operationally routine approvals, thereby freeing the Administrator to deal with complex and sensitive matters involving significant risk and requiring the greatest time and effort, and also enable the Department to provide a better service to the public and vehicle manufacturers.
The Secretary will appoint experienced and qualified Executive Level 2 or SES officers as Associate Administrators and the appointments will require strong personal accountability by the officers. To ensure the highest standards of decision-making, the Secretary will establish those matters that each Associate Administrator may deal with, and those matters that must be escalated to the Administrator.
The Department will undertake regular review of these governance arrangements to build in flexibility and to ensure consistency of decision-making, giving consideration to among other things:
- the experience and qualifications of an Associate Administrator;
- consistency in decision-making;
- developments in domestic and international motor vehicle standards administration;
- critical and high priority matters from time-to-time.
The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The amendments are administrative in nature and there was no need to consult with industry participants. Accordingly, the Office of Best Practice Regulation was consulted and granted an exemption from Regulation Impact Statement for the amendments.
Name of Regulation
The title of the Regulation is the Motor Vehicle Standards Amendment Regulation 2012 (No. 1).
Commencement
This Regulation provides for the Regulations to commence on the day after they are registered.
Amendment of Motor Vehicle Standards Regulations 1989
The Motor Vehicle Standards Regulations 1989 are amended as set out in the Schedule.
Schedule – Amendments
Item [1] – Regulation 62
Item [1] repeals and replaces current regulation 62 of the Motor Vehicle Standards Regulations 1989 and creates that the Minister may by signed instrument delegate to the Administrator, or to an Associate Administrator, all or any of the Minister’s functions and powers under the Regulations.
The effect of Item [1] is to replace SES employee in the Department with Associate Administrator.
Authority: Section 42 of the Motor Vehicle Standards Act 1989
Overview
The Motor Vehicle Standards Amendment Regulation 2012 (No. 1) was introduced to address a discrepancy in the delegation of the Minister’s powers under the Motor Vehicle Standards Act 1989. Enacted by the Australian Parliament, the Act established a regulatory framework to ensure uniform vehicle standards apply to new vehicles and regulate the first supply of used imported vehicles to the market. However, a conflict arose between the Act's allowance for delegation of the Minister’s powers to either the Administrator or an Associate Administrator, and the Motor Vehicle Standards Regulations 1989, which restricted such delegation to only SES employees in the Department. This inconsistency resulted in the Administrator having to manage all applications, regardless of complexity, hindering the Department’s ability to efficiently service the public and vehicle manufacturers. The amendment enables the Minister to delegate powers to both the Administrator and Associate Administrators, allowing for more efficient decision-making and better service delivery by enabling Associate Administrators to handle routine approvals.
Scope and Application
The Motor Vehicle Standards Amendment Regulation 2012 (No. 1) amends the Motor Vehicle Standards Regulations 1989 to enhance the delegation of functions and powers of the Minister under the Motor Vehicle Standards Act 1989. This amendment applies to both the Administrator and Associate Administrators of the Department, enabling them to make certain decisions regarding the approval of new vehicles and imported used vehicles intended for use in Australia. The regulation aims to streamline the decision-making process by allowing Associate Administrators to handle routine approvals, thereby allowing the Administrator to focus on more complex and sensitive matters. This change is designed to improve service delivery to the public and vehicle manufacturers. The amendments do not alter the geographic or jurisdictional scope of the Act, which continues to apply nationally across Australia, ensuring uniform vehicle standards for new and used imported vehicles entering the market. The regulation is administrative in nature and, as such, did not require consultation with industry participants, though it has been reviewed by the Office of Best Practice Regulation.
Key Provisions
The Motor Vehicle Standards Amendment Regulation 2012 (No. 1) introduces significant changes to the delegation of functions and powers under the Motor Vehicle Standards Act 1989. Primarily, the regulation modifies section 62 of the Motor Vehicle Standards Regulations 1989 to allow the Minister to delegate any of the Minister’s functions and powers to an Associate Administrator, in addition to the Administrator, rather than limiting delegation to only SES employees in the Department. This change aims to enhance the efficiency and responsiveness of the administrative processes involved in approving new vehicles and used imported vehicles for use in Australia.
Under the new regulation, the Minister has the authority to delegate certain administrative tasks to Associate Administrators. These delegated tasks are intended to cover routine approvals and less complex matters, allowing the Administrator to focus on more intricate, high-risk, and sensitive issues. The Secretary will appoint qualified individuals to the role of Associate Administrator, ensuring that these officers possess the necessary experience and qualifications to handle their assigned responsibilities effectively. The Secretary will also define the scope of matters each Associate Administrator can address and specify which issues require escalation to the Administrator, thereby maintaining a clear framework for decision-making.
The regulation imposes obligations on the Secretary and the Associate Administrators to ensure that decision-making standards remain high. The Secretary must appoint experienced officers, establish clear guidelines for the types of matters Associate Administrators can handle, and regularly review these governance arrangements to adapt to evolving standards and priorities. Associate Administrators, in turn, must exercise strong personal accountability in their decision-making processes. The Department is also required to conduct regular reviews of these governance arrangements to maintain consistency and flexibility in decision-making, taking into account factors such as the experience and qualifications of the Associate Administrators, the need for consistent decisions, and developments in motor vehicle standards both domestically and internationally.
Failure to comply with the requirements of the Motor Vehicle Standards Amendment Regulation 2012 (No. 1) may result in administrative consequences. However, the specific nature of these consequences is not detailed in the explanatory statement. It is implicit that any breaches of the regulation could lead to challenges in the approval processes for vehicles, potentially impacting both the public and vehicle manufacturers negatively. Ensuring adherence to these new governance structures is critical to maintaining the integrity and efficiency of the vehicle approval system under the Motor Vehicle Standards Act 1989.