EXPLANATORY STATEMENT
Select Legislative Instrument 2005 No. 138
Issued by the Authority of the Minister for Local Government, Territories and Roads
Motor Vehicle Standards Act 1989
Motor Vehicle Standards Amendment Regulations 2005 (No. 2)
The Motor Vehicle Standards Act 1989 (the Act) provides for uniform national motor vehicle standards for new vehicles when they begin to be used in transport in Australia and regulates the first supply to the market of used imported vehicles.
Section 42 of the Act provides 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. Section 24 of the Act provides for the prescription of certain fees, or a method of calculating fees, payable to the Commonwealth for specified activities performed by vehicle manufacturers and importers.
The purpose of the Regulations is to amend the Motor Vehicle Standards Regulations 1989 (the Principal Regulations) to reduce the level of some fees payable to the Commonwealth by full volume vehicle manufacturers and importers.
The intention to reduce the fees from 1 July 2005 was announced on 10 May 2005 as part of the Budget measures.
Regulation 60 of the Principal Regulations states that there is payable to the Commonwealth, in respect of a matter specified in an item in Schedule 2, the fee specified in that item. Schedule 2 to the Principal Regulations specifies those matters for which a fee is payable. The fees are payable by road vehicle manufacturers and importers and are intended to cover the costs associated with the regulation of vehicle standards under the Act.
Amongst other matters, fees are payable by manufacturers who hold approval to place identification plates on new vehicles. The fees become payable at the time the identification plates are placed on the vehicles. The plates certify that the new vehicles have been manufactured to meet a minimum set of standards for safety, emissions and anti‑theft that are set out in the Australian Design Rules for Motor Vehicles.
The automotive industry has shown recent strong growth which has provided an increase in fee recovery. The Regulations reduce by 20% the fee amounts payable by manufacturers for the placement of identification plates to new vehicles with the intention of bringing the fees in line with the cost of regulating vehicle standards.
The Regulations amend three items in Schedule 2. The new provisions decrease the fees relating to items 1, 2 and 6(a) of that Schedule which relate to the placement of identification plates on new road vehicles by vehicle manufacturers.
Details of the Regulations are set out in the Attachment.
The Act specifies no conditions that must be met before the power to make the proposed Regulations may be exercised.
The Regulations are a legislative instrument for the purpose of the Legislative Instruments Act 2003.
The Regulations commenced on 1 July 2005.
Details of the Motor Vehicle Standards Amendment Regulations 2005 (No. 2)
Regulation 1 – Name of Regulations
This regulation provides that the title of the Regulations is the Motor Vehicle Standards Amendment Regulations 2005 (No. 2).
Regulation 2 – Commencement
This regulation provides that the Regulations commence on 1 July 2005.
Regulation 3 – Amendment of the Motor Vehicle Standards Regulations 1989
This regulation provides that the Motor Vehicle Standards Regulations 1989 (the Principal Regulations) are amended as set out in Schedule 1.
Schedule 1 – Amendments
Schedule 2 – Item 1
The Fee ($) ‘7.50’ has been omitted and replaced with ‘6.00’ to reduce the fee by 20%.
Schedule 2 – Item 2
The Fee ($) ‘3.75’ has been omitted and replaced with ‘3.00’ to reduce the fee by 20%.
Schedule 2 – Item 6(a)
The Fee ($) ’28.10’ has been omitted and replaced with ’22.50’ to reduce the fee by 20%.
Overview
The Motor Vehicle Standards Amendment Regulations 2005 (No. 2) were enacted to amend the Motor Vehicle Standards Regulations 1989, as authorised by the Motor Vehicle Standards Act 1989. This legislation was introduced by the Parliament of Australia to address a need for adjustments in fees related to the regulation of vehicle standards, ensuring they align with the costs incurred in administering these standards. The Motor Vehicle Standards Act 1989 established a framework for uniform national standards for motor vehicles in Australia, including the regulation of fees associated with the first supply of new and used vehicles to the market. The amendment sought to reduce certain fees by 20%, reflecting the increased fee recovery due to the automotive industry's growth, thereby bringing the fees more in line with the actual regulatory costs. The policy objective was to adjust the fee structure to better reflect the current economic conditions while maintaining the integrity of the regulatory framework.
Scope and Application
The Motor Vehicle Standards Act 1989 applies to the regulation of new and used imported vehicles in Australia, establishing uniform national standards for motor vehicles and governing their first supply to the market. This legislation extends to all road vehicle manufacturers and importers within Australia, ensuring that vehicles meet minimum safety, emissions, and anti-theft standards as set out in the Australian Design Rules for Motor Vehicles. The Act allows for the imposition of fees to cover the costs associated with regulating these standards, which are payable by vehicle manufacturers and importers. The Motor Vehicle Standards Amendment Regulations 2005 (No. 2) amend the Motor Vehicle Standards Regulations 1989 by reducing certain fees by 20%, specifically those related to the placement of identification plates on new vehicles, in line with the costs of regulating vehicle standards. The amendments came into effect on 1 July 2005 and are a legislative instrument under the Legislative Instruments Act 2003. The Act does not specify any conditions that must be met before the power to make these Regulations can be exercised.
Key Provisions
The Motor Vehicle Standards Amendment Regulations 2005 (No. 2) introduce significant changes to the fees that full volume vehicle manufacturers and importers are required to pay under the Motor Vehicle Standards Act 1989. Specifically, the Regulations reduce by 20% the fees for placing identification plates on new vehicles, which are critical for certifying that the vehicles meet safety, emissions, and anti-theft standards (Schedule 2, items 1, 2, and 6(a)). These changes are intended to align the fees more closely with the costs of regulating vehicle standards, reflecting the recent growth in the automotive industry that has led to increased fee recovery.
The obligations imposed by these Regulations on vehicle manufacturers and importers include ensuring that the new fee amounts are adhered to when placing identification plates on new vehicles. The fees specified in the amended Schedule 2 must be paid to the Commonwealth at the time of placing the identification plates. The fees cover the costs associated with the regulation of vehicle standards under the Act, and the reduction aims to bring these fees more in line with actual regulatory costs.
In terms of consequences for non-compliance, the Regulations do not explicitly outline specific offences, penalties, or civil/criminal consequences for breaching the amended fee provisions. However, the Act generally provides for enforcement mechanisms to ensure compliance with its provisions. Breaches of the Act or the Regulations could potentially lead to penalties under the general provisions of the Motor Vehicle Standards Act 1989, although the specific penalties for non-payment or underpayment of fees are not detailed in the Regulations themselves. Generally, penalties for non-compliance with fees prescribed by the Act could include fines or other financial penalties, and in severe cases, legal action may be taken against the defaulting party.