Permanent Ban on Miniature Motorbikes (Monkey Bikes) with Unsafe Design Features Repeal Notice 2019

EXPLANATORY STATEMENT

Permanent Ban on Miniature Motorbikes (Monkey Bikes) with Unsafe Design Features Repeal Notice 2019

Overview

In 2011, a permanent ban on miniature motorbikes with unsafe design features was made pursuant to subsection 114(1) of the Australian Consumer Law (ACL), which is Schedule 2 to the Competition and Consumer Act 2010 (Cth).

The Minister for Housing and Assistant Treasurer (the Minister) has repealed the permanent ban and made a new safety standard for miniature motorbikes. The new safety standard is the Consumer Goods (Miniature Motorbikes) Safety Standard 2019.

Purpose

The purpose of this notice is to repeal the Consumer Protection Notice No.24 of 2011 – Revocation of existing permanent ban on miniature motorbikes (monkey bikes) with unsafe design features and imposition of new permanent ban on miniature motorbikes (monkey bikes) with unsafe design features (see Federal Register of Legislation No. F2011L01702). This repeal notice is made pursuant to section 117 of the ACL and takes effect on the same day the new safety standard commences.

Repealed permanent ban

Under subsection 33(3) of the Acts Interpretation Act 1901 (Cth), where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

The repealed permanent ban prohibited the supply of a miniature motorbike unless it met requirements for:

• a self-closing throttle
• effective brakes
• adequate foot pegs
• effective steering
• a supplemental engine stop.

New safety standard for miniature motorbikes

The new safety standard for miniature motorbikes is the Consumer Goods (Miniature Motorbikes) Safety Standard 2019 (see Federal Register of Legislation No. F2019L01633). The new safety standard maintains the requirements of the permanent ban and includes additional requirements for a speed-limiting device, as well as warnings and instructions.

The new safety standard defines a miniature motorbike as:

miniature motorbike (also known as a mini bike or pocket bike) means a vehicle which resembles a motorcycle but scaled down to about half the size, that:

This definition is consistent with the definition of a miniature motorbike in the Motor Vehicle Standards Act 1989 (Cth).

Transitional arrangements

The new safety standard provides a transitional period of 12 months beginning on the day that instrument and this repeal notice commence. During the transitional period, a miniature motorbike complies with the requirements of the new safety standard if it:

a)      would not have been banned under the permanent ban, or

b)      complies with the new safety standard.

After the transitional period, suppliers must meet the requirements of the Consumer Goods (Miniature Motorbikes) Safety Standard 2019.

Consultation

The ACCC published a consultation paper for miniature motorbikes and invited stakeholder feedback from 19 November to 14 December 2018. The paper detailed two policy options for dealing with the permanent ban:

Option 1 - Maintain the permanent ban (status quo)

Option 2 - Revoke the permanent ban and make a new regulatory instrument.

Twenty-two submissions were received from private individuals, industry representatives, government, suppliers, safety advocates and motorcycle riding associations.

Fifteen stakeholders were in favour of revoking the permanent ban and making a new regulatory instrument (Option 2), while seven preferred the status quo. Nineteen submissions supported the introduction of warnings and instructions. Eighteen submissions supported the introduction of a speed limiting device and seventeen submission supported aligning the definition with the definition in the Motor Vehicles Standards Act 1989 (Cth).

Disallowance

This legislative instrument is not subject to disallowance due to section 44 of the Legislation Act 2003 (Cth).

Commencement

This legislative instrument commences on 18 December 2019.

Regulation impact assessment

The Office of Best Practice Regulation advised that a Regulation Impact Statement was not required.