EXPLANATORY STATEMENT
Select Legislative Instrument No. 208, 2015
Issued by the Authority of the Minister for Foreign Affairs
Nuclear Non-Proliferation (Safeguards) Act 1987
Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2015 (No. 1 )
Section 74 of the Nuclear Non-Proliferation (Safeguards) Act 1987 (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. In addition section 70 of the Act provides that powers, discretions, duties or functions under the Act are to be exercised in accordance with specified international agreements identified in the Act, or prescribed in regulations.
Section 3 of the Nuclear Safeguards (Producers of Uranium Ore Concentrates) Charge Act 1993 imposes a charge on producers of uranium ore concentrates (the charge) under certain circumstances. Section 69A of the Act specifies that the charge is payable on 1 December each year and that the amount of the charge payable by a producer is $500,000 or an amount prescribed by the regulations, whichever is the lesser. The amount of the charge, expressed in cents per kilogram of uranium in the uranium ore concentrate produced, is set in the Nuclear Non-Proliferation (Safeguards) Regulations 1987 (the Principal Regulations).
The Regulations prescribe to the Principal Regulations the amount of charge payable by a producer of uranium ore concentrates as the lesser of $500,000 or 14.1775 cents per kilogram of uranium in the uranium ore concentrates produced in the previous financial year. Details of the Regulations are attached. The rate is arrived by apportioning Australian Safeguards and Non-Proliferation Office general expenses to work categories related to regulation of uranium mining and export. Item 7 of the Regulations includes a new provision to make clear that the charge payable by a producer of uranium ore concentrates applies in relation to the 2015-16 financial year and later financial years.
Consultation and Regulatory Impact
The then Office of Regulation Review advised on 18 January 2006 that as the direct effect on business is minor in nature a Regulation Impact Statement (RIS) is not mandatory, therefore an exception applies. The Office of Regulation Review also advised that subsequent amendments to the charge per kilogram to uranium producers will not require a RIS. The three uranium producers have been consulted of the increase to the uranium producers charge in 2015 and were provided with an opportunity to comment.
Human Rights
This statement of compatibility is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. This Legislative Instrument does not engage any of the applicable rights or freedoms described in the Human Rights (Parliamentary Scrutiny) Act 2011. Accordingly, this Legislative Instrument is compatible with human rights.
Commencement
The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.
ATTACHMENT
DETAILS OF AMENDMENTS TO THE NUCLEAR NON-PROLIFERATION (SAFEGUARDS) REGULATIONS 1987
Regulation 1 provides that these amendment regulations should be known as the Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2015 (No. 1 ).
Regulation 2 provides that the Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
Regulation 3 specifies that the Regulations are made under the Nuclear Non-Proliferation (Safeguards) Act 1987.
Regulation 4 enables Schedule 1 to amend the Nuclear Non-Proliferation (Safeguards) Regulations 1987 (“the Principal Regulations”).
Schedule 1
Item 1 provides that within Paragraph 6(a) of the Principal Regulations “10.3077” be omitted and “14.1775” be inserted.
Item 2 provides that a new Item 7 to the Principal Regulations be inserted.
Item 7 includes a new provision to make clear that the charge payable by a producer of uranium ore concentrates applies in relation to the 2015-16 financial year and later finiancal years commencing on 1 December.
Overview
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2015 (No. 1) were enacted to provide clarity and adjust the financial obligations for producers of uranium ore concentrates under the Nuclear Non-Proliferation (Safeguards) Act 1987. This legislative instrument was introduced to ensure that the financial burden placed on uranium producers aligns with the administrative costs associated with the regulation of uranium mining and export. The regulations were developed under the authority of the Minister for Foreign Affairs and aim to maintain the integrity of Australia's obligations under international non-proliferation agreements. The changes include a revision of the charge per kilogram of uranium in uranium ore concentrates, apportioning the Australian Safeguards and Non-Proliferation Office's general expenses to relevant work categories. This amendment clarifies that the charge applies to the 2015-16 financial year and subsequent years, ensuring transparency and predictability for the affected industry. The enacting body, the Federal Parliament, ensured the regulations do not contravene any human rights as per the Human Rights (Parliamentary Scrutiny) Act 2011.
Scope and Application
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2015 (No. 1) pertain to the Nuclear Non-Proliferation (Safeguards) Act 1987, which applies to individuals and entities involved in the production and export of uranium ore concentrates in Australia. These regulations are made under section 74 of the Act, and they govern the charge imposed on producers of uranium ore concentrates, ensuring that the charge aligns with the general expenses of the Australian Safeguards and Non-Proliferation Office. The application of the Act is national, extending across the Commonwealth of Australia, with its provisions applicable to all producers of uranium ore concentrates within this jurisdiction. The Regulations clarify that the charge applies to financial years commencing from 2015-16 onwards, making it explicit that the financial burden on producers is set for future years. No specific exclusions or exemptions are outlined in the text, though the charge is calculated to be the lesser of $500,000 or a specified amount per kilogram of uranium produced, providing a threshold to limit the financial impact on producers. The Regulations also reference the Nuclear Safeguards (Producers of Uranium Ore Concentrates) Charge Act 1993, further detailing the charge mechanism.
Key Provisions
The main provisions of the Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2015 (No. 1) revolve around the amendment of the charge imposed on producers of uranium ore concentrates (section 3). Regulation 4 amends the Nuclear Non-Proliferation (Safeguards) Regulations 1987 by adjusting the charge rate from 10.3077 cents per kilogram to 14.1775 cents per kilogram of uranium in the uranium ore concentrates produced (item 1 of Schedule 1). Additionally, a new provision is introduced to clarify that the charge applies to the 2015-16 financial year and subsequent years, payable on 1 December each year (item 2 of Schedule 1).
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2015 (No. 1) impose obligations on producers of uranium ore concentrates to pay a charge as specified by the regulations. The charge is calculated as the lesser of $500,000 or the amount derived from multiplying the quantity of uranium ore concentrates produced in the previous financial year by 14.1775 cents per kilogram. These producers must ensure timely payment of the charge by 1 December each year to comply with the legislative requirements. Furthermore, the regulations necessitate adherence to the specified international agreements identified in the Nuclear Non-Proliferation (Safeguards) Act 1987, ensuring that the exercise of powers, discretions, duties, or functions under the Act aligns with these agreements.
Failure to comply with the provisions of the Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2015 (No. 1) can result in significant consequences. Although the Act does not specify a particular offence or penalty for non-payment of the charge, it is reasonable to infer that non-compliance could lead to enforcement actions under the overarching Nuclear Non-Proliferation (Safeguards) Act 1987. Such actions may include fines or other civil remedies aimed at ensuring adherence to the regulatory framework. Given the importance of compliance with nuclear non-proliferation safeguards, the penalties for non-compliance could be severe, reflecting the critical nature of these regulations in maintaining national and international security standards.