Tradespersons' Rights (Cost Recovery) Amendment Regulations 2003 (No. 1) 2003 No. 104
EXPLANATORY STATEMENT
Statutory Rules 2003 No. 104
Issued by the authority of the Minister for Employment and Workplace Relations
Tradesmen's Rights Regulation Act 1946
Tradespersons' Rights (Cost Recovery) Amendment Regulations 2003 (No. 1)
Section 51A of the Tradesmen's Rights Regulation Act 1946 provides that the Governor-General may make regulations for the purpose of reimbursing the Department of Employment and Workplace Relations for costs incurred in relation to trade testing services and the provision of trade certificates.
The Tradespersons' Rights (Cost Recovery) Regulations (the Principal Regulations) were made pursuant to section 51A of the Act. Subregulation 3(1) imposes a fee for an application by an Australian resident for an Australian Recognised Trade Certificate.
The Department also conducts trades assessments for prospective migrants. Both the standard and optional priority application fees for these assessments are prescribed by the Migration Regulations 1994.
At the time subregulation 3(1) of the Principal Regulations was made the fee of $390 was appropriate to enable the Department to recover the relevant costs.
Since then, the number of applications from prospective migrants has substantially increased, and the Department has improved its performance. As a result, the fees now generate a total annual profit of $1.5 million.
In its 2002 report `Cost recovery by Government Agencies' the Productivity Commission recommended that cost recovery fees should not make a profit as cost recovery activities that make a profit may be vulnerable to challenge as a form of taxation. The Government has agreed to this recommendation. Accordingly, the Minister has approved a reduction in the fee from
1 July 2003 from $390 to $300. The Regulations implement this fee reduction.
The regulations also amend the Principal Regulations to include 1993 in the citation.
Details of the regulations are in the Attachment.
The regulations commence on 1 July 2003.
0303655A
ATTACHMENT
TRADESPERSONS' RIGHTS (COST RECOVERY) AMENDMENT REGULATIONS 2003 (NO. 1)
Regulation 1 - Name of regulations
This is a formal provision that provides the name of the Regulations.
Regulation 2 - Commencement
Regulation 2 provides that the Regulations commence on 1 July 2003.
Regulation 3 - Amendment of Tradespersons' Rights (Cost Recovery) Regulations
Regulation 3 provides that Schedule 1 amends the Tradespersons' Rights (Cost Recovery) Regulations.
SCHEDULE
Schedule 1 - Amendments
Item 1 of Schedule 1 inserts a date of citation into the Tradespersons' Rights (Cost Recovery) Regulations.
Item 2 of Schedule 1 provides that the application fee payable to the Department for a trade certificate is reduced from $390 to $300.
Overview
The Tradespersons' Rights (Cost Recovery) Amendment Regulations 2003 (No. 1), enacted in 2003, were introduced to address a specific financial issue arising from the fees charged for trade testing services and the provision of trade certificates. These regulations amend the Tradespersons' Rights Regulation Act 1946 and were issued under the authority of the Minister for Employment and Workplace Relations. The fundamental policy objective was to align the cost recovery fees with the actual costs incurred by the Department of Employment and Workplace Relations, ensuring that the fees do not generate a profit as recommended by the Productivity Commission in its 2002 report on cost recovery by government agencies. The amendments reduced the application fee for an Australian Recognised Trade Certificate from $390 to $300, effective from 1 July 2003, to better reflect the current cost structure and address the identified financial surplus.
Scope and Application
The Tradespersons' Rights (Cost Recovery) Amendment Regulations 2003 (No. 1) applies to Australian residents and prospective migrants seeking Australian Recognised Trade Certificates. These Regulations are made pursuant to section 51A of the Tradesmen's Rights Regulation Act 1946 and amend the Tradespersons' Rights (Cost Recovery) Regulations to address cost recovery for trade testing services and the provision of trade certificates. The amendments pertain to the fees associated with applications for trade certificates and the impact of these fees on the Department of Employment and Workplace Relations. The geographic reach of these Regulations is national, affecting all applicants within Australia regardless of their residency status. The Regulations include an amendment to the application fee for an Australian Recognised Trade Certificate, reducing it from $390 to $300, effective from 1 July 2003, to ensure that the fees do not generate a profit, in line with the Productivity Commission's recommendation against profit-making cost recovery activities. The changes also update the citation of the Principal Regulations to include 1993, reflecting the Regulations' jurisdiction and scope.
Key Provisions
The Tradespersons' Rights (Cost Recovery) Amendment Regulations 2003 (No. 1) provide specific amendments to the existing Tradespersons' Rights (Cost Recovery) Regulations, primarily focusing on adjusting the fee for the application of an Australian Recognised Trade Certificate. Section 51A of the Tradesmen's Rights Regulation Act 1946 empowers the Governor-General to establish regulations for reimbursing the Department of Employment and Workplace Relations for costs related to trade testing services and trade certificates. The Principal Regulations, made under this authority, previously set a fee of $390 for Australian resident applicants seeking a trade certificate (Regulation 3(1)). However, these Amendment Regulations lower this fee to $300, effective from 1 July 2003, in response to the Productivity Commission's recommendation that cost recovery fees should not generate a profit.
The Regulations also introduce an amendment to include the year 1993 in the citation of the Principal Regulations (Regulation 3). This amendment is purely formal and does not affect the substantive content of the regulations. Additionally, the Regulations are scheduled to commence on 1 July 2003 (Regulation 2), ensuring a smooth transition to the new fee structure.
The obligations imposed by these Regulations on parties or entities governed by them include adhering to the new fee structure for trade certificate applications. The Department of Employment and Workplace Relations must now accept $300 instead of $390 as the application fee for Australian residents seeking a trade certificate. Furthermore, the Regulations necessitate that any relevant documentation or systems be updated to reflect this change. Prospective applicants must be informed of the fee reduction, and the Department must process applications according to the amended fee.
Regarding potential consequences for non-compliance, the Regulations do not explicitly outline specific offences or penalties for breaching the new fee structure. However, failure to comply with the regulations could potentially result in administrative penalties or other legal consequences under the broader legislative framework of the Tradesmen's Rights Regulation Act 1946. The primary focus of these Regulations is on adjusting the fee to align with cost recovery principles, rather than penalising non-compliance.