Bills Digest No. 20 2003-04
Ozone Protection (Licence Fees - Imports) Amendment Bill
2003
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Endnotes
Contact Officer & Copyright Details
Passage History
Ozone Protection (Licence
Fees - Imports) Amendment Bill 2003
Date Introduced: 5 June
2003
House:
House of Representatives
Portfolio:
Environment and
Heritage
Commencement:
On Royal
Assent
To extend the current payments applying to the
importation of prescribed ozone-depleting substances to certain
synthetic greenhouse gases. The Bill also allows for an increase in
these payments.
The Ozone Protection (Licence Fees - Imports)
Amendment Bill 2003 (the Bill) is one of a package of three Bills
dealing with ozone protection. The policy background to this
package is contained in the Digest for the Ozone Protection and
Synthetic Greenhouse Gas Legislation Amendment Bill 2003.
Existing Section 4 of the
Ozone Protection (Licence Fees - Imports) Act 1995
provides that the holder of a controlled substances(1)
licence must pay a fee to the Commonwealth for any HCFC or methyl
bromide imported by them during a quarter. The fee is calculated by
clause 4 of the Ozone
Protection (Licence Fees Imports) Regulations.
Items 1-3 all make minor
consequential changes as a result of regulation of synthetic
greenhouse gas being introduced under the Ozone Protection and
Synthetic Greenhouse Gas Legislation Amendment Bill 2003.
Item 4 substitutes a
new section 4
that provides that the holder of a controlled substances licence is
liable to pay a levy to the Commonwealth for the importation of any
substance allowed by that licence. As for existing section 4, the
amount is payable on quarterly basis and is to be calculated under
regulations.(2) Where the importation of a SGG is
permitted by regulations made under section 13(1A) of the Ozone
Protection and Synthetic Greenhouse Gas Legislation Amendment Bill
2003, no levy is payable: new subsection 4(2).
New subsection
4(4) sets an upper limit on the levy. The upper limits are
50% above the current fees.(3) According the Explanatory Memorandum to the
Bill:(4)
The original aim of the [Ozone Protection Act 1989] was
that meeting Environment Australia s administrative and industry
support activities be financed through fees paid by industry.
However, commencing in 2010, Environment Australia s costs are
expected to exceed the combined revenue available from accumulated
financial reserves and future revenue from payments under existing
fee structures. In order to meet obligations extending through to
2020 when ODS will no longer be needed for most applications,
Environment Australia is seeking increases of 50 percent in
selected licence application fees, increases of 50 percent in
activity fees and the introduction of fees for certain
administrative functions now performed free of charge.
Licence application fees have not risen since
1995. In the ensuing period, normal parameter adjustments in the
average cost to Environment Australia of employing staff to process
licence applications have been experienced. Second, in the next
10-15 years the revenue which Environment Australia obtains from
activity fees will decline sharply as legislative limits covering
industry access to imports of two prominent ODS -
hydrochlorofluorocarbons (HCFCs) and methyl bromide used for
horticultural purposes - progressively restrict imports. A decline
in revenue from activity fees will occur at the same time
[Environment Australia] faces the greatest demand on its
resources to assist industry in adjusting to ozone benign
alternatives.
Note that new section 4 uses the term
levy as opposed to the existing fee . A levy is a form of taxation.
The change of wording from fee to levy is consistent with Office of
Parliamentary Drafting Directions that state that taxation should
be imposed by express words .(5)
Endnotes
1.
These are
hydrochloroflurocarbons (HCFCs) and methyl bromide.
2.
Note that this
quarterly activity levy is additional to the costs of
holding a controlled
substances licence. A controlled substances licence, which is valid
for two years, costs $10 000. See Explanatory Memorandum, p.
5.
3.
There is no
current fee for SGGs as these are not covered by current
legislation.
4.
P. 4.
5.
Drafting
Direction 4/1993, See also Drafting Direction 6/1982.
Angus Martyn
25 August 2003
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 2003
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2003.
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