EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry
Quarantine Act 1908
Quarantine Service Fees Amendment Determination 2008 (No. 3)
Subsection 86E(1) of the Quarantine Act 1908 (‘the Act’) provides that the Minister may make determinations that require fees of amounts set out in the determination to be paid in respect of, inter alia, specified examinations or services carried out or provided under the Act. Subsection 86E(2) of the Act provides that the determination may specify the persons by whom the fees are payable.
The Quarantine Service Fees Determination 2005 (‘the Determination’) sets out the fees that must be paid in respect of specified examinations or services carried out or provided under the Act. The Determination sets out fees for services performed by Programs of the Australian Quarantine and Inspection Service (‘AQIS’), including the service of holding equine animals in quarantine at a quarantine station.
This amendment implements the second part of recommendation 38 of the report titled the “Equine influenza: the August 2007 outbreak in Australia” ( “the EI Report”) which was prepared by the Honourable Ian Callinan AC in April 2008 in response to the 2007 equine influenza outbreak. The EI Report was tabled in Parliament on 12 June 2008. The Government agreed to all 38 recommendations. As such, the purpose of the Quarantine Service Fees Amendment Determination 2008 (No. 3) (“the Amendment Determination”) is to give effect specifically to the second part of recommendation 38. The Amendment Determination will restructure and increase the fee in subitem 36(b) of Schedule 1, Part 3 of the Determination.
Recommendation 38, found on page 332 of the EI Report, states that “until the review of those fees has been completed, the fee charged by the government controlled and operated quarantine stations for thoroughbred stallions temporarily imported into Australia be not be less than $165.00 plus GST a day and the fee for all other horses be not less than $65.00 plus GST a day. No discount is to be allowed for the number of horses in a consignment.”
The Government has agreed to recommendation 38 and in the Government response to the EI Report stated that “until the fee review is finalised, and provided there is a legislative basis to do so, the fee charged by the government controlled and operated quarantine stations for thoroughbred stallions temporarily imported into Australia will not be less than $165.00 plus GST a day and the fee for all other horses will not be less than $65.00 plus GST a day. The Government agrees that no discount should be allowed for the number of horses in a consignment and this will be reflected in the revised fees.”
Limited consultation has occurred on the Amendment Determination due to their temporary nature pending a full review of all fees charged in relation to the importation and quarantining of horses. During the equine influenza inquiry exposure recommendations were released for public comment for the purpose of consultation and obtaining submissions on whether some or all of the exposure recommendations should become the final recommendations.
The Amendment Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
A Cost Recovery Impact Statement has not been prepared for the Amendment Determination, however the EI Report notes, at page 331, that in relation to recommendation 38 “the costing and charging proposals are consistent with the Australian Government Cost Recovery Guidelines”. A Cost Recovery Impact Statement will be prepared for any future amendments following the full review recommended in the first part of recommendation 38.
The Amendment Determination commences on the day after it is registered.
Details of the Amendment Determination are set out below:
Section 1 provides that the name of the Amendment Determination is the Quarantine Service Fees Amendment Determination 2008 (No. 3).
Section 2 provides that the Amendment Determination commences on the day after it is registered on the Federal Register of Legislative Instruments.
Section 3 provides that Schedule 1 amends the Quarantine Service Fees Determination 2005.
Section 4 provides that the amendments made by Schedule 1 apply in relation to anything done on or after the day on which the amendments take effect.
Schedule 1 - Amendments
Item 1 inserts a definition for the term ‘thoroughbred stallion’. This clarifies the meaning of the term, which is intended to encompass horses which are stallions recorded as thoroughbred are imported for any purpose.
Item 2 amends subitem 36(b) of Schedule 1, Part 3 by substituting paragraph (b) in column 3 with new paragraphs (b) and (ba). The effect of this amendment is to restructure and increase the fees payable for the service. Previously the fees in paragraph (b) were calculated according to how many horses were held in a consignment. The new fees distinguish between a thoroughbred stallion, the import permit for which provides that the stallion will remain in Australia for a continuous period of no longer than 6 months, and equine animals other than thoroughbred stallions. The fee payable for the service in relation to thoroughbred stallions is $165 a day for each animal. The fee payable for the service in relation to equine animals other than thoroughbred stallions is $65 a day for each animal. This amendment implements the second part of recommendation 38 of the EI Report. Recommendation 38, found on page 332 of the EI Report, states that “until the review of those fees has been completed, the fee charged by the government controlled and operated quarantine stations for thoroughbred stallions temporarily imported into Australia be not be less than $165.00 plus GST a day and the fee for all other horses be not less than $65.00 plus GST a day. No discount is to be allowed for the number of horses in a consignment.”
GST is not imposed in respect of quarantine station charges under the Quarantine Act 1908 or fees under section 86E of the Quarantine Act 1908 by virtue of items 126 and 127 of Part 1 of Schedule 1 of the A New Tax System (Goods and Services Tax) (Exempt Taxes, Fees and Charges) Determination 2008 (No. 1) made under section 81-5 of the A New Tax System (Goods and Services Tax) Act 1999.