EXPLANATORY STATEMENT
Select Legislative Instrument 2013 No. 213
Issued by the Authority of the Minister for Home Affairs
Passenger Movement Charge Collection Act 1978
Passenger Movement Charge Collection (Recovery and Refund of Charges) Regulation 2013
Section 15 of the Passenger Movement Charge Collection Act 1978 (the Act) provides in part that the Governor‑General may make Regulations not inconsistent with the Act prescribing all matters which by the Act are required or permitted to be prescribed, and, in particular:
(a) making provision for and in relation to claims for refunds, the allowance of payment of refunds and the recovery of refunds paid incorrectly;
(b) making provisions for and in relation to the appointment of bodies or persons as approved agents; and
(c) prescribing penalties not exceeding 5 penalty units for offences against the regulations.
Under the Act, a passenger movement charge is payable in respect of the departure of a person from Australia by the person prior to their departure. Section 11 of the Act provides that the regulations may make provision in relation to the payment of the passenger movement charge and exemption from the charge by way of charge stamps and exemption stamps. Stamps in a travel document indicate the payment or exemption from payment of the passenger movement charge. Such provisions are currently set out in the Passenger Movement Charge Collection Regulations (the Principal Regulations) made in 2004.
In addition to a person being able to discharge their liability by way of a charge stamp or exemption stamp, section 10 of the Act allows the Minister to make an arrangement with a person under which the person agrees to pay to the Commonwealth an amount equal to the charge payable by any person to whom the arrangement applies. Such arrangements have been made, since the mid-1990s, with all major airlines and shipping lines. In effect, and in most cases, airlines and shipping lines collect the passenger movement charge from a person on behalf of Australian Customs and Border Protection. The effective operation of these arrangements means that charge stamps and exemptions stamps, and the processes relating to these stamps, are no longer in use.
The Regulation repeals the Principal Regulations with the exception of two provisions which provide for the refund of a passenger movement charge and the recovery of incorrectly paid refunds of a passenger movement charge. These provisions are still required as there are a small number of passengers each year who do not pay the passenger movement charge under an arrangement and instead pay passenger movement charge directly to Australian Customs and Border Protection.
As the Regulation is of a minor or machinery nature, no consultation was undertaken in relation to the Regulation.
The amending Regulation commences on the day after registration on the Federal Register of Legislative Instruments.
Statement of Compatibility with Human Rights
(Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011)
Passenger Movement Charge Collection (Recovery and Refund of Charges) Regulation 2013
This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in the definition of human rights in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Regulation
The purpose of this Regulation is to repeal the Passenger Movement Charge Collection Regulations (the Regulations).
Under the Passenger Movement Charge Collection Act 1978, a passenger movement charge is payable in respect of the departure of a person from Australia by the person prior to their departure. The Regulations provide that payment of the passenger movement charge and exemption from the charge may be done by way of charge stamps and exemption stamps. However, stamps are no longer used for payment of the passenger movement charge. Accordingly, the Regulations are being repealed
In addition to repealing the Regulations, the legislative instrument will retain two of the provisions contained in the regulation concerning the refund of a passenger movement charge and the recovery of incorrectly paid refunds of a passenger movement charge.
Human Rights implications
This legislative instrument does not engage any of the applicable rights or freedoms.
Conclusion
This legislative instrument is compatible with human rights as it does not raise any human rights issues.
Minister for Home Affairs
Overview
The Passenger Movement Charge Collection (Recovery and Refund of Charges) Regulation 2013, issued under the authority of the Minister for Home Affairs, serves to repeal the existing Passenger Movement Charge Collection Regulations of 2004, while retaining specific provisions related to the refund of the passenger movement charge and the recovery of incorrectly paid refunds. This regulation addresses the redundancy of charge and exemption stamps in the context of the charge collection process, as modern arrangements with major airlines and shipping lines have rendered these stamps obsolete. The regulation aligns with the overarching policy objective of the Passenger Movement Charge Collection Act 1978, which mandates a charge for the departure of individuals from Australia, and it streamlines the charge collection process by eliminating outdated mechanisms. The regulation was issued without consultation, reflecting its minor or machinery nature, and it commenced on the day following its registration on the Federal Register of Legislative Instruments. Additionally, the regulation has been assessed for compatibility with human rights under the Human Rights (Parliamentary Scrutiny) Act 2011, and it does not engage any of the applicable rights or freedoms, thereby maintaining alignment with human rights standards.
Scope and Application
The Passenger Movement Charge Collection Act 1978 applies to any person who is departing from Australia and mandates the payment of a passenger movement charge prior to departure. This charge is typically collected by approved entities such as airlines and shipping lines under arrangements with the Minister for Home Affairs, effectively offloading the collection responsibility from the individual to these entities. The Act's regulatory scope is supplemented by the Passenger Movement Charge Collection (Recovery and Refund of Charges) Regulation 2013, which further defines the processes for refunds and the recovery of incorrectly paid charges, while repealing the outdated provisions regarding charge stamps and exemption stamps. The Act applies across the Commonwealth of Australia, ensuring uniformity in the collection process nationwide. While the primary collection mechanism involves approved agents, there are still provisions for direct payment to Australian Customs and Border Protection, although these cases are relatively rare. The Regulation is deemed minor and does not necessitate consultation, focusing primarily on the practical elimination of the now-obsolete stamp system. The Regulation retains only the provisions necessary for refunding and recovering incorrectly paid charges, reflecting the Act’s continued relevance in managing the financial obligations of departing passengers.
Key Provisions
The Passenger Movement Charge Collection (Recovery and Refund of Charges) Regulation 2013 (the Regulation) primarily serves to repeal the Passenger Movement Charge Collection Regulations (the Principal Regulations) made in 2004, with some exceptions. Section 15 of the Passenger Movement Charge Collection Act 1978 (the Act) authorises the Governor-General to make Regulations that are not inconsistent with the Act. This includes making provisions for refunds, the appointment of approved agents, and penalties for breaches. Specifically, the Regulation repeals the Principal Regulations but retains the provisions concerning the refund of a passenger movement charge and the recovery of incorrectly paid refunds, as these provisions are still necessary for a small number of passengers who do not pay the charge through an arrangement with airlines or shipping lines.
Under the Act, a passenger movement charge is payable by a person departing Australia. Section 11 of the Act allows for the payment of this charge and exemptions from it, which were previously managed through charge and exemption stamps. However, these stamps are no longer used because airlines and shipping lines collect the charge on behalf of Australian Customs and Border Protection. This change has rendered the stamp-based system obsolete. The Regulation thus updates the regulatory framework to reflect these changes, ensuring that the process remains efficient and aligned with current practices.
The Act imposes obligations on airlines, shipping lines, and passengers to ensure the payment of the passenger movement charge. Airlines and shipping lines are required to collect the charge from passengers as per their arrangements with the Minister. Passengers, in turn, must either pay the charge directly to Australian Customs and Border Protection or through an approved agent such as an airline or shipping line. The Regulation ensures that the mechanisms for refunding incorrectly paid charges and recovering those refunds remain in place, thereby maintaining a clear process for handling any discrepancies that may arise.
Breaches of the Regulation may result in penalties. Section 15 of the Act allows for penalties not exceeding 5 penalty units for offences against the regulations. While the specific nature of these penalties is not detailed in the explanatory statement, it is understood that they are intended to enforce compliance with the Act and the Regulation. These penalties serve as a deterrent against non-compliance and ensure that the passenger movement charge is collected and managed effectively.