Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2018

Overview

The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2018 were introduced to address the need to update the charge imposed on producers of uranium ore concentrates, ensuring that it reflects the current expenses related to the regulation of uranium mining and export. Enacted under Section 74 of the Nuclear Non-Proliferation (Safeguards) Act 1987, these regulations were made by the Minister for Foreign Affairs to provide necessary adjustments to the charge rate set out in the Nuclear Non-Proliferation (Safeguards) Regulations 1987. The primary objective is to ensure that the charge aligns with the expenses of the Australian Safeguards and Non-Proliferation Office, apportioned to work categories related to uranium regulation. This amendment specifies that the charge payable by a producer is the lesser of $500,000 or 13.5502 cents per kilogram of uranium produced in the previous financial year, effective from the 2017-18 financial year onwards. The changes do not require a Regulation Impact Statement as the effect on businesses is minor, and the uranium producers were consulted and given an opportunity to comment on the proposed changes.

Scope and Application

The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2018 applies to the producers of uranium ore concentrates in Australia, modifying the rate of charge imposed on them under the Nuclear Non-Proliferation (Safeguards) Act 1987. The Act and its amendments are applicable at the Commonwealth level, with the regulations specifically affecting those involved in the production of uranium ore concentrates. These regulations set the charge to the lesser of $500,000 or 13.5502 cents per kilogram of uranium in the uranium ore concentrates produced in the previous financial year. This adjustment to the charge is derived by apportioning the general expenses of the Australian Safeguards and Non-Proliferation Office to work categories associated with the regulation of uranium mining and export. The amendment applies to the 2017-18 financial year and subsequent years. Notably, the Office of Regulation Review determined that the impact on businesses is minor, thus exempting these regulations from requiring a Regulation Impact Statement. The uranium producers were consulted and given a chance to comment on the changes to the charge rate in 2018. Furthermore, the Legislative Instrument is deemed compatible with human rights as it does not engage with any of the applicable rights or freedoms described in the Human Rights (Parliamentary Scrutiny) Act 2011.

Key Provisions

The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2018 (Regulations) amend the Nuclear Non-Proliferation (Safeguards) Regulations 1987 (Principal Regulations). Specifically, the Regulations change the charge imposed on producers of uranium ore concentrates under the Nuclear Safeguards (Producers of Uranium Ore Concentrates) Charge Act 1993 (Charge Act). The charge is now set at 13.5502 cents per kilogram of uranium in the uranium ore concentrate produced in the previous financial year, which is the lesser of this amount or $500,000 (Schedule 1, item 1 and 2). This amendment applies to the 2017-18 financial year and subsequent years (Schedule 1, item 3). Under the Nuclear Non-Proliferation (Safeguards) Act 1987, producers of uranium ore concentrates must comply with the regulations concerning the charge. The Regulations require producers to pay the charge annually by 1 December each year, with the amount being the lesser of $500,000 or 13.5502 cents per kilogram of uranium produced in the previous financial year (Section 69A of the Act). Producers must ensure they meet this obligation to avoid any legal repercussions. Breach of the charge obligations can lead to civil and criminal consequences. While the specific penalties are not detailed in the explanatory statement, under the Charge Act, failure to pay the charge can result in fines and potential prosecution. The precise penalties would be in accordance with the Charge Act and the Nuclear Non-Proliferation (Safeguards) Act 1987, which may include substantial fines and imprisonment for serious or repeated breaches. The Regulations are compatible with human rights as they do not engage any of the applicable rights or freedoms described in the Human Rights (Parliamentary Scrutiny) Act 2011. The Office of Regulation Review confirmed that a Regulation Impact Statement is not mandatory due to the minor effect on businesses, and the three uranium producers were consulted and given an opportunity to comment on the changes. The Regulations commenced on the day after registration and are a legislative instrument under the Legislative Instruments Act 2003.