EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 79
Issued by the authority of the Minister for Industry, Tourism and Resources
Trans-Tasman Mutual Recognition Act 1997
Trans-Tasman Mutual Recognition Amendment Regulations 2006 (No. 1)
The Trans-Tasman Mutual Recognition Arrangement (TTMRA) is a non-treaty agreement between the Commonwealth, State and Territory Governments of Australia and the Government of New Zealand, which gives effect to mutual recognition principles relating to the sale of goods and the registration of occupations. In respect of goods, a good that can be legally sold in Australia may be sold in New Zealand and vice versa; in respect of occupations, a person registered to practise an occupation in Australia is entitled to practise the same occupation in New Zealand and vice versa. The Minister for Industry, Tourism and Resources is responsible for the goods component of the TTMRA.
The Trans-Tasman Mutual Recognition Act 1997 (the Act) recognises within Australia regulatory standards adopted in New Zealand regarding these goods and occupations. The Schedules to the Act set out the exclusions and exemptions to the Act. In particular, Schedule 3 to the Act provides for special exemptions for laws relating to certain goods including therapeutic goods; radio communications devices; road vehicles; gas appliances; and hazardous substances, industrial chemicals, and dangerous goods (including certain consumer product safety standards).
Subsection 48(1) of the Act provides that the laws of an Australian jurisdiction that relate to goods and that are specified or described in Schedule 3 are exempt from the operation of the Act. Subsection 48(2) provides that such Special Exemptions under Schedule 3 operate for no longer than twelve months from the commencement of section 48; however, these Special Exemptions may be extended for up to a further twelve months by regulation. Subsection 48(4) provides that the Governor-General may make regulations amending Schedule 3 for the purposes of extending the exemption period.
The purpose of the Regulations is to extend the Special Exemption status for laws relating to goods covered by Schedule 3 for a further twelve months to 30 April 2007. The extension will allow Australian and New Zealand regulators to continue to develop complementary regulatory arrangements for those matters which are the subject of the current exemptions. The expiry date for regulations covered under Schedule 3 is 30 April each year.
The laws relating to goods covered by Special Exemptions are subject to multi-jurisdictional Cooperation Programs designed to resolve outstanding regulatory issues with the aim of achieving mutual recognition.
Three months before each twelve month Special Exemption period expires, the regulatory authorities responsible for pursuing Cooperation Programs submit a jointly agreed Annual Cooperation Report to Heads of Government of all participating jurisdictions. These reports set out the progress that has been achieved over the previous year and, if relevant, provide a justification as to why a further twelve month extension to the Special Exemption period is needed. On the basis of progress achieved and the timetable for completion, Heads of Government decide whether a further twelve month Special Exemption period should be sought.
Subsection 48(5) of the Act provides that regulations made under subsection 48(4) may not be made unless at least two‑thirds of participating jurisdictions have endorsed the regulations. Section 43 provides that a jurisdiction endorses a regulation by publishing a notice endorsing the terms of the regulations in the jurisdiction’s official gazette and that the making of a recommendation by the Minister to the Governor-General for the making of the regulations constitutes the Commonwealth’s endorsement.
In accordance with subsection 48(5) of the Act, it has been agreed by at least two-thirds of participating jurisdictions to extend the Special Exemption for the laws relating to goods listed under Schedule 3, for a further twelve month period expiring on 30 April 2007.
The Regulations have the effect of implementing Heads of Government decisions in relation to the extension of Special Exemptions. Endorsements of the Regulations have been published in the official gazettes of participating jurisdictions as required under subsection 43(1) of the Act. The making of these Regulations represents endorsement by the Commonwealth as stated in subsection 43(2) of the Act.
The Act specifies no other conditions that need to be satisfied before the power to make the Regulations may be exercised.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.
Overview
The Trans-Tasman Mutual Recognition Act 1997, enacted by the Parliament of Australia, was introduced to facilitate the mutual recognition of regulatory standards between Australia and New Zealand concerning the sale of goods and the registration of occupations. This legislation recognises regulatory standards adopted in New Zealand within Australia, aiming to streamline trade and professional practice across the Tasman Sea. However, the Act includes specific exemptions for certain goods, as outlined in Schedule 3, such as therapeutic goods and hazardous substances, which are subject to special regulatory considerations. The policy objective is to allow Australian and New Zealand regulators to develop complementary arrangements to achieve mutual recognition while ensuring public safety and compliance with respective national laws.
The Trans-Tasman Mutual Recognition Amendment Regulations 2006 (No. 1), made under the authority of the Minister for Industry, Tourism and Resources, extend the Special Exemption period for the specified goods listed in Schedule 3 for another twelve months, until 30 April 2007. This extension allows further time for regulators from both countries to work on resolving outstanding regulatory issues, with a requirement for a two-thirds endorsement from participating jurisdictions before such extensions can be made. The Regulations reflect decisions made by Heads of Government and have been endorsed by publishing notices in the official gazettes of participating jurisdictions, as mandated by the Act.
Scope and Application
The Trans-Tasman Mutual Recognition Act 1997 applies to the mutual recognition of regulatory standards between Australia and New Zealand, facilitating the sale of goods and the registration of occupations across both countries. It is designed to ensure that goods legally sold in one country can be legally sold in the other and that individuals registered to practise an occupation in one country can do the same in the other. The Act applies to any person or entity involved in the sale of goods or the practice of occupations covered by the TTMRA, and it operates within the Commonwealth of Australia, including all states and territories. However, the Act contains specific exclusions and exemptions, particularly for certain categories of goods such as therapeutic goods, radio communications devices, road vehicles, gas appliances, and hazardous substances, which are outlined in Schedule 3. These exemptions are temporary and may be extended by regulation, subject to endorsement by at least two-thirds of the participating jurisdictions. The Act also allows for the extension of these exemptions through subordinate instruments, which must be endorsed by the relevant jurisdictions as specified in the Act.
Key Provisions
The Trans-Tasman Mutual Recognition Amendment Regulations 2006 (No. 1) primarily extend the Special Exemption status for certain goods under the Trans-Tasman Mutual Recognition Act 1997 (the Act) (subsection 48(1)). These goods, listed in Schedule 3, include therapeutic goods, radio communications devices, road vehicles, gas appliances, and hazardous substances, industrial chemicals, and dangerous goods (including certain consumer product safety standards). The Regulations aim to extend this Special Exemption status for another twelve months, until 30 April 2007. This extension allows for continued development of complementary regulatory arrangements between Australian and New Zealand authorities, focusing on resolving outstanding regulatory issues to achieve mutual recognition. The Act mandates that such Special Exemptions can be extended for no longer than twelve months by regulation, and this extension must be endorsed by at least two-thirds of the participating jurisdictions (subsection 48(5)).
Under the Act, participating jurisdictions have the obligation to develop and implement Cooperation Programs designed to address the regulatory issues associated with the goods under Special Exemption. These programs involve multi-jurisdictional cooperation, with regulatory authorities working together to make progress toward mutual recognition. Three months before the expiry of each twelve-month Special Exemption period, the authorities responsible for the Cooperation Programs must submit an Annual Cooperation Report to the Heads of Government of all participating jurisdictions. This report details the progress achieved over the past year and, if necessary, provides justification for an additional twelve-month extension of the Special Exemption period. Based on this report and the progress timeline, the Heads of Government decide whether to seek an extension.
Failure to comply with the Act and the Regulations can lead to various consequences. Under the Act, the regulatory authorities are obligated to adhere to the Cooperation Programs and ensure timely submission of the Annual Cooperation Reports. Any jurisdiction failing to endorse the regulations as required by subsection 43(1) of the Act may result in the inability to extend the Special Exemption period. This failure can hinder the development of complementary regulatory arrangements and potentially delay the achievement of mutual recognition. The Regulations are legislative instruments, and their non-compliance can result in administrative or legal penalties as prescribed by the Legislative Instruments Act 2003.
The Regulations, once endorsed by at least two-thirds of the participating jurisdictions and published in the official gazettes, represent the formal endorsement of the Commonwealth as stated in subsection 43(2) of the Act. These Regulations are effective from the day after their registration on the Federal Register of Legislative Instruments. The Act provides no additional conditions for exercising the power to make these Regulations, ensuring that the extension of Special Exemptions is straightforward and timely. The overarching goal is to facilitate ongoing cooperation and regulatory alignment between Australia and New Zealand, promoting mutual recognition for the specified goods.