MOTOR VEHICLE STANDARDS ACT 1989
Vehicle Standard (Australian Design Rule 81/02 —
Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 4
E X P L A N A T O R Y S T A T E M E N T
Issued by the authority of the Minister for Infrastructure
and Transport
December 2010
1. Legislative Context for ADR 81/02
Vehicle Standard (Australian Design Rule 81/02 – Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 4 is made under the Motor Vehicle Standards Act 1989 (the Act). The Act enables the Australian Government to establish nationally uniform standards for road vehicles when they are first supplied to the market in Australia. The Act applies to such vehicles whether they are manufactured in Australia or are imported as new or second hand vehicles.
The making of the vehicle standards necessary for the Act's effective operation is provided for in section 7 which empowers the Minister to "determine vehicle standards for road vehicles or vehicle components".
2. Content and Effect of ADR 81/02 Amendment 4
Australian Design Rule (ADR) 81/02 prescribes the fuel consumption labelling requirements for light vehicles. Schedule 1 of Amendment 4 amends ADR81/02 to correct minor drafting errors.
3. Consultation Arrangements
3.1 General Arrangements
It has been longstanding practice to consult widely on proposed new or amended vehicle standards. For many years there has been active collaboration between the Australian and the state/territory Governments, as well as consultation with industry and consumer groups. Much of the consultation takes place within institutional arrangements established for this purpose. The analysis and documentation prepared in a particular case, and the bodies consulted, depend on the degree of impact the new or amended standard is expected to have on industry or road users.
New standards, or significant changes that increase the stringency of existing standards, are subject to consideration by Ministers of the Australian Transport Council (ATC), with the Minister for Infrastructure and Transport having ultimate responsibility to determine the new or amended standards under the Act. Proposals that are regarded as significant need to be supported by a Regulation Impact Statement meeting the requirements of the Office of Best Practice Regulation.
In November 2005, ATC agreed to streamlined arrangements for processing ADRs which removed the need for a formal ATC vote where the ADR proposals are non‑controversial and harmonised with international regulations.
3.2 Specific Arrangements for this ADR
The amendments outlined in section 2 of this explanatory statement represent minor changes which do not change the intent or stringency of the ADR.
As the amendment to ADR 81/02 is purely editorial, clearance by the Office of Best Practice Regulation was not required.
Overview
The Motor Vehicle Standards Act 1989, enacted by the Parliament of Australia, establishes uniform standards for road vehicles to ensure safety and efficiency in the Australian market. This Act applies to both domestically manufactured and imported vehicles, providing a regulatory framework to govern vehicle standards. The problem the Act was introduced to address is the need for consistent and enforceable vehicle standards to enhance road safety and consumer protection. The policy objective of the Act is to enable the Minister for Infrastructure and Transport to determine necessary vehicle standards, ensuring they are in line with both national and international regulations.
The Vehicle Standard (Australian Design Rule 81/02 – Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 4, made under the authority of the Minister for Infrastructure and Transport, corrects minor drafting errors in ADR 81/02, which prescribes fuel consumption labelling requirements for light vehicles. This amendment is purely editorial and does not alter the intent or stringency of the original rule. Given its nature, it did not require clearance from the Office of Best Practice Regulation. The amendment process involved extensive consultation with relevant stakeholders, including state/territory governments, industry representatives, and consumer groups, to ensure that the changes align with broader regulatory objectives and do not adversely impact the market.
Scope and Application
The Motor Vehicle Standards Act 1989 applies to all road vehicles supplied in Australia, irrespective of whether they are manufactured domestically or imported as new or second-hand vehicles. The Act empowers the Minister for Infrastructure and Transport to determine vehicle standards, which includes the establishment of fuel consumption labelling requirements for light vehicles as per Australian Design Rule (ADR) 81/02. The Act's application is national in scope, ensuring uniformity across all states and territories. The recent Amendment 4 to ADR 81/02 corrects minor drafting errors without altering the intent or stringency of the original standard, and due to the minor nature of these amendments, formal clearance by the Office of Best Practice Regulation was not necessary. The consultation process for such amendments typically involves collaboration between the Australian Government, state and territory governments, and industry stakeholders, although streamlined arrangements can apply for non-controversial amendments that align with international regulations.
Key Provisions
The Motor Vehicle Standards Act 1989 (the Act), under which the Australian Design Rule (ADR) 81/02 – Fuel Consumption Labelling for Light Vehicles 2008 Amendment 4 has been made, empowers the Minister to determine vehicle standards for road vehicles or vehicle components (section 7). The Act applies to all vehicles supplied to the Australian market, whether manufactured locally or imported. The ADR 81/02 Amendment 4 is primarily an update to correct minor drafting errors in the existing ADR 81/02, which prescribes the fuel consumption labelling requirements for light vehicles. Schedule 1 of the amendment provides these corrections, ensuring the ADR remains clear and precise in its requirements.
The obligations imposed by the ADR 81/02 Amendment 4 primarily concern vehicle manufacturers and importers. They must ensure that all light vehicles supplied in Australia comply with the amended labelling requirements. This includes displaying accurate and standardised information about fuel consumption on vehicle labels. The ADR sets out specific formats, units of measurement, and other details that must be adhered to. Vehicle manufacturers and importers need to be aware of these requirements to avoid non-compliance, which can lead to regulatory action.
Breaches of the provisions in the ADR 81/02 Amendment 4 can result in both civil and criminal consequences. Under the Motor Vehicle Standards Act 1989, non-compliance with the vehicle standards can lead to penalties. For example, section 119 of the Act allows for fines and other sanctions for those who fail to comply with the standards. The maximum penalties can vary depending on the severity and frequency of the breach, but they are designed to ensure compliance and protect consumers by providing accurate information about vehicle fuel consumption. Additionally, failure to comply can also result in legal action, including court proceedings, which could further escalate the financial and reputational costs for the offending party.