EXPLANATORY STATEMENT
Select Legislative Instrument No. 194, 2015
Issued by Authority of the Minister for Agriculture and Water Resources
Quarantine Charges (Collection) Act 2014
Quarantine Charges (Collection) Amendment (Cost Recovery) Regulation 2015
Legislative Authority
The Quarantine Charges (Collection) Act 2014 (the Act) concerns the collection of charges under the Quarantine Charges (Imposition—General) Act 2014, the Quarantine Charges (Imposition—Customs) Act 2014 and the Quarantine Charges (Imposition—Excise) Act 2014 (the quarantine charges legislation).
Section 45 of the Act provides that the Governor‑General may make regulations prescribing matters required or permitted to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Paragraph 10(a) of the Act provides that a regulation may be made to specify when a quarantine charge is due and payable.
Subparagraphs 10(b)(i) and (ii) of the Act provide that regulations may be made relating to the liability of a person’s agent to pay quarantine charges on behalf of that person and the recovery of those charges from the person by the agent.
Subsection 13(1) of the Act provides that a regulation may be made that provides for a late payment fee to be imposed in circumstances where a quarantine charge that is due and payable has not been paid.
Subsection 13(3) of the Act specifies that a regulation may prescribe one or more persons to be liable to pay a late payment fee in relation to a quarantine charge that has not been paid.
Purpose
The purpose of the Quarantine Charges (Collection) Amendment (Cost Recovery) Regulation 2015 (the Amendment Regulation) is to amend the Quarantine Charges (Collection) Regulation 2014 (the Regulation) so that it applies to the collection of charges under the Quarantine Charges (Imposition—General) Act 2014 in addition to the Quarantine Charges (Imposition—Customs) Act 2014.
The Amendment Regulation is necessary to implement the new quarantine cost recovery charges developed as part of the Department of Agriculture and Water Resources’ (the department) redesign of cost recovery arrangements.
Background
Shifting global demands, growing passenger and trade volumes, increasing imports from a growing number of countries and population expansion all contribute to the complexity of the modern quarantine environment.
Quarantine services undertaken by the department include assessing and managing the quarantine risks arising from people, goods and vessels (sea and aircraft) entering Australia. These essential services which occur onshore, offshore and at the border are a major part of the department’s day-to-day business.
Monitoring compliance with quarantine legislation comes at a cost. The Australian Government Cost Recovery Guidelines state that agencies should recover some or all of the costs of activities that they provide.
The policy authority for continued cost recovery of quarantine services was confirmed in the 2015–16 Budget when the Commonwealth announced the redesign of the department’s cost recovery arrangements. The redesign improves the department’s cost recovery arrangements so they are financially sustainable and support the efficient and effective delivery of quarantine services into the future. The redesign improves the cost recovery of quarantine services by:
- recovering the full costs of services undertaken by the department
- simplifying the structure of fees and charges
- achieving greater equity in client contributions to system costs
- expanding and enhancing services to strengthen the management of quarantine risks.
Commencement of the Act and the associated quarantine charges legislation on 1 July 2014 provides the appropriate legal structure for the recovery of costs through the imposition of charges as a cost recovery levy, rather than a fee.
From 1 December 2015 the Regulation will operate alongside the legislative framework for cost recovering through fees where a service is provided directly to an individual or business or organisation. These fees are contained within the Quarantine Service Fees Determination 2005.
Impact and Effect
The Regulation, as amended by this Amendment Regulation assists the Commonwealth to collect charges imposed under both the Quarantine Charges (Imposition—Customs) Act 2014 and the Quarantine Charges (Imposition—General) Act 2014.
The Regulation, as amended by the Amendment Regulation, gives effect to this by specifying—for both Customs and General quarantine charges—the time in which charges are to be paid, the liability of a person’s agent to pay charges on the person’s behalf, the establishment of late payment fees where charges are not paid in the time prescribed and who is liable to pay late payment fees.
Consultation
The department consulted with stakeholders during the development of the redesigned cost recovery fees and charges. This included the department working with all quarantine-related industry consultative committees and other clients and interested stakeholders through public engagement forums. The department released a draft Cost Recovery Implementation Statement (CRIS) for public comment and provided opportunity for stakeholders to provide feedback through a submissions process.
Stakeholder feedback was taken into account and the final CRIS was certified by the Secretary of the department and endorsed by the Minister for Agriculture and Water Resources. The Minister for Finance agreed to release the final CRIS which is available on the department’s website.
The Amendment Regulation is compatible with human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. A full statement of compatibility is set out in Attachment A.
A Regulatory Impact Statement (RIS) was completed on the department’s quarantine, imported food and export certification cost recovery redesign (Office of Best Practice Regulation ID: 17726). OBPR assessed the RIS as best practice. A copy of the RIS is attached.
The Amendment Regulation is a legislative instrument for the purpose of the Legislative Instruments Act 2003.
Details of the Quarantine Charges (Collections) Amendment (Cost Recovery) Regulation 2015
Section 1 – Name of Regulation
This section provides that the name of the Amendment Regulation is the Quarantine Charges (Collections) Amendment (Cost Recovery) Regulation 2015.
Section 2 – Commencement
This section provides for the Amendment Regulation to commence on 1 December 2015.
Section 3 – Authority
This section provides for the Amendment Regulation to be made under the Quarantine Charges (Collection) Act 2014.
Section 4 – Schedules
This section provides that each instrument specified in a schedule to the Amendment Regulation is amended or repealed as set out in the applicable Schedule.
Schedule 1 - Amendments
Item 1 repeals the definition of ‘customs quarantine charge’.
Item 2 inserts into section 4 the following new definitions:
A quarantine charge (customs) means a quarantine charge imposed under section 7 of the Quarantine Charges (Imposition—Customs) Act 2014.
A quarantine charge (general) means a quarantine charge imposed under section 7 of the Quarantine Charges (Imposition—General) Act 2014.
Item 3 omits a ‘customs quarantine charge’ in section 5 and substitutes ‘a quarantine charge (customs)’ and a ‘quarantine charge (general)’ to ensure that both types of charges are due and payable when a demand for payment of the charge is made.
Item 4 omits a ‘customs quarantine charge’ in subsection 6(1) and substitutes ‘a quarantine charge (customs)’ and a ‘quarantine charge (general)’ to ensure that an agent’s liability extends to both types of charges.
Item 5 omits ‘the customs quarantine charge’ in subsection 6(1) and substitutes ‘the charge’ to ensure that an agents liability extends to both types of charges.
Item 6 omits a ‘customs quarantine charge’ in subparagraph 6(2)(a) and substitutes ‘a quarantine charge (customs)’ and a ‘quarantine charge (general)’ to ensure that an agent’s liability extends to both types of charges.
Item 7 inserts Part 3 – Unpaid quarantine charges before section 7 which is a technical amendment to allow for the amendment in Item 8.
Item 8 omits a ‘customs quarantine charge’ in subsection 7(1) and substitutes ‘a quarantine charge (customs)’ and a ‘quarantine charge (general), (the relevant charge)’. This amendment ensures that late payment fees can be applicable to both types of quarantine charges.
Item 9 omits ‘in relation to a customs quarantine charge’ from subsection 7(2).
Item 10 repeals the formula in subsection 7(2) and substitutes:
This amendment ensures that late payment fees can be applicable to both types of charges.
Item 11 omits ‘customs quarantine’ from subsection 7(2) and substitutes ‘relevant’ to allow for late payment fees to be applicable to both types of charges.
Item 12 repeals section 8 and substitutes a new section 8 relating to persons liable to pay a late payment fee. The amendment allows for the liability for paying late payment fees to apply to both types of charges.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Quarantine Charges (Collections) Amendment (Cost Recovery) Regulation 2015
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of the Quarantine Charges (Collection) Amendment (Cost Recovery) Regulation 2015 (the Amendment Regulation) is to amend the Quarantine Charges (Collection) Regulation 2014 (the Regulation) so that it applies to the collection of charges under the Quarantine Charges (Imposition—General) Act 2014 in addition to the Quarantine Charges (Imposition—Customs) Act 2014.
The Amendment Regulation is necessary to implement the new quarantine cost recovery charges developed as part of the Department of Agriculture and Water Resources’ redesign of cost recovery arrangements.
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.
The Hon. Barnaby Joyce MP
Minister for Agriculture and Water Resources