EXPLANATORY STATEMENT

Jervis Bay Territory Acceptance Act 1915

Administration Ordinance 1990

Water and Sewerage Services Fees Determination 2012 (Jervis Bay Territory)

The Administration Ordinance 1990 was made pursuant to Subsection 4F(1) of the Jervis Bay Territory Acceptance Act 1915 (the Act) which provides that the Governor-General may make Ordinances for the peace, order and good government of the Jervis Bay Territory (the Territory). 

Subsection 3B(1) of the Administration Ordinance 1990 enables the Minister responsible for Australia’s Territories to determine fees for the provision of utilities and services provided by the Australian Government in the Territory.  The Minister has delegated the power to determine fees for these utilities and services to specific official positions within the Department of Regional Australia, Local Government, Arts and Sport (the Department). The signatory of this Determination is such a delegate under the Christmas Island, Cocos (Keeling) Islands, and Jervis Bay Territory Delegation Instrument 2012 dated 8 March 2012.

The purpose of this Determination is to set the water and sewerage fees for the Territory to apply from 1 July 2012.

The water fees take into account Australian Government policy to supply services to JBT residents at a standard based on general parity with those in the surrounding region. The fees, as far as practicable, observe the National Water Initiative pricing reform principles which have a basis for cost recovery commensurate with the level of consumption.

The sewerage fees take into account a number of factors including prices in the Shoalhaven region and the costs of maintaining the sewerage network within the Territory.

With the increase across the range of fees in the Determination, residents in the Territory will continue to pay equivalent or lower water availability and usage fees, and equivalent or lower sewerage-service availability fees than residents in the nearby Shoalhaven region.

The Territory does not have an economy of scale to enable full recovery for all the costs related to the provision of water and sewerage services.

Consultation

The Department published in the Jervis Bay Territory Community Bulletin (the Bulletin) and the Department’s Internet, a notice of the proposed increase in fees and an invitation to comment on the proposal. The Bulletin was posted to all water and sewerage account holders in the Territory. It advised the availability of the then draft Determination and a comparison of the new fees and what was in force at the time of consultation.

No submissions were received in response to the Bulletin.

Compatibility with Human Rights

The Statement of Compatibility with Human Rights is set out in Attachment A.

DETAILS OF THE Jervis Bay Territory Water and Sewerage Services Fees Determination 2012

Section 1 of the Determination provides that it may be cited as the Water and Sewerage Services Fees Determination 2012.

Section 2 provides that the Determination commences on 1 July 2012.

Section 3 provides for the revocation of the previous Water and Sewerage Fee Determination.

Section 4 defines the terms used in this Determination.

Section 5 provides for the water usage fees and that Schedule 1 determines the fees payable for the provision of water.

The water availability fee is the price charged to have water services made available and is dependent on the water connection size. All annual water availability fees are equivalent or lower than those charged in the nearby Shoalhaven region.

The water usage fee is the price charged per kilolitre of water used. Residents in the nearby region of Shoalhaven paid $1.50 per kilolitre up to 450KL and 1.85 per KL for usage greater than 450KL in 2011-12. With the new fee, residents in JBT will still be charged one of the lowest water usage fees in Australia, at $0.86 per KL.

The supply of water is GST-free — see section 38.285 of the A New Tax System (Goods and Services Tax) Act 1999.

Section 6 provides that Schedule 2 determines the fees payable for the provision of sewerage services.

The sewerage-service availability fee is the price charged to have sewerage services made available and is dependent on the water connection size. The annual sewerage-service availability fees are equivalent or lower than those charged in the nearby Shoalhaven region.

The supply of sewerage services is GST-free — see section 38.290 of the A New Tax System (Goods and Services Tax) Act 1999.

Section 7 provides for water and sewerage fees being payable for each water meter service connection.

Section 8 provides for the period of payment and due date for the payment of fees.

Jervis Bay Territory Water and Sewerage Services Fees Comparison Table

ATTACHMENT A

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Water and Sewerage Services Fees Determination 2012

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

This Legislative Instrument sets the water and sewerage services fees for the Jervis Bay Territory.

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.