2013-2014 

 

The Parliament of the 

Commonwealth of Australia 

 

HOUSE OF REPRESENTATIVES 

 

 

 

 

Presented and read a first time 

 

 

 

 

Competition and Consumer Amendment 

(Industry Code Penalties) Bill 2014 

 

No.      , 2014 

 

(Treasury) 

 

 

 

A Bill for an Act to amend the Competition and 

Consumer Act 2010, and for related purposes 

   

   

 

 

No.      , 2014 

Competition and Consumer Amendment (Industry Code Penalties) Bill 

2014 

i 

 

Contents 

1 

Short title ........................................................................................... 1

 

2 

Commencement ................................................................................. 1

 

3 

Schedule(s) ........................................................................................ 2

 

Schedule 1--Amendments

 

3

 

Competition and Consumer Act 2010

 

3

 

 

 

 

No.      , 2014 

Competition and Consumer Amendment (Industry Code Penalties) Bill 

2014 

1 

 

A Bill for an Act to amend the Competition and 

1 

Consumer Act 2010, and for related purposes 

2 

The Parliament of Australia enacts: 

3 

1  Short title 

4 

 

  This Act may be cited as the Competition and Consumer 

5 

Amendment (Industry Code Penalties) Act 2014. 

6 

2  Commencement 

7 

 

  This Act commences on 1 January 2015. 

8 

   

   

 

 

2 

Competition and Consumer Amendment (Industry Code Penalties) Bill 

2014 

No.      , 2014 

 

3  Schedule(s) 

1 

 

  Each Act that is specified in a Schedule to this Act is amended or 

2 

repealed as set out in the applicable items in the Schedule 

3 

concerned, and any other item in a Schedule to this Act has effect 

4 

according to its terms. 

5 

Amendments  Schedule 1 

   

 

 

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Competition and Consumer Amendment (Industry Code Penalties) Bill 

2014 

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Schedule 1

--Amendments 

1 

   

2 

Competition and Consumer Act 2010 

3 

1  Subsection 51ACA(1) 

4 

Insert: 

5 

infringement notice means an infringement notice issued under 

6 

subsection 151ACD(1). 

7 

infringement notice compliance period: see 

8 

subsection 151ACI(1). 

9 

2  Section 51AD 

10 

Renumber as section 51ACB. 

11 

3  After Division 2 of Part IVB 

12 

Insert: 

13 

Division 2A--Infringement notices 

14 

51ACC  Purpose and effect of this Division 

15 

 

(1)  The purpose of this Division is to provide for the issue of an 

16 

infringement notice to a person for an alleged contravention of a 

17 

civil penalty provision of an industry code as an alternative to 

18 

proceedings for an order under section 76 for the payment of a 

19 

pecuniary penalty. 

20 

 

(2)  This Division does not: 

21 

 

(a)  require an infringement notice to be issued to a person for an 

22 

alleged contravention of a civil penalty provision of an 

23 

industry code; or 

24 

 

(b)  affect the liability of a person to proceedings under 

25 

section 76 in relation to an alleged contravention of a civil 

26 

penalty provision of an industry code if: 

27 

 

(i)  an infringement notice is not issued to the person for the 

28 

contravention; or 

29 

Schedule 1  Amendments 

   

 

 

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Competition and Consumer Amendment (Industry Code Penalties) Bill 

2014 

No.      , 2014 

 

 

(ii)  an infringement notice issued to the person for the 

1 

contravention is withdrawn under section 51ACJ; or 

2 

 

(c)  prevent a court from imposing a higher penalty than the 

3 

penalty specified in the infringement notice if the person does 

4 

not comply with the notice. 

5 

51ACD  Issuing an infringement notice 

6 

 

(1)  If the Commission has reasonable grounds to believe that a person 

7 

has contravened a civil penalty provision of an industry code, the 

8 

Commission may issue an infringement notice to the person. 

9 

 

(2)  The Commission must not issue more than one infringement notice 

10 

to the person for the same alleged contravention of the civil penalty 

11 

provision of the industry code. 

12 

 

(3)  The infringement notice does not have any effect if the notice: 

13 

 

(a)  is issued more than 12 months after the day that the 

14 

contravention of the civil penalty provision of the industry 

15 

code is alleged to have occurred; or 

16 

 

(b)  relates to more than one alleged contravention of a civil 

17 

penalty provision of the industry code by the person. 

18 

51ACE  Matters to be included in an infringement notice 

19 

 

(1)  An infringement notice must: 

20 

 

(a)  be identified by a unique number; and 

21 

 

(b)  state the day on which it is issued; and 

22 

 

(c)  state the name and address of the person to whom it is issued; 

23 

and 

24 

 

(d)  identify the Commission and state how it may be contacted; 

25 

and 

26 

 

(e)  give details of the alleged contravention, including: 

27 

 

(i)  the day of the alleged contravention; and 

28 

 

(ii)  the civil penalty provision of the industry code that was 

29 

allegedly contravened; and 

30 

 

(f)  state the maximum pecuniary penalty that the court could 

31 

order the person to pay under section 76 for the alleged 

32 

contravention; and 

33 

Amendments  Schedule 1 

   

 

 

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(g)  specify the penalty that is payable in relation to the alleged 

1 

contravention; and 

2 

 

(h)  state that the penalty is payable within the infringement 

3 

notice compliance period for the notice; and 

4 

 

(i)  state that the penalty is payable to the Commission on behalf 

5 

of the Commonwealth; and 

6 

 

(j)  explain how payment of the penalty is to be made; and 

7 

 

(k)  explain the effect of sections 51ACG, 51ACH, 51ACI and 

8 

51ACJ. 

9 

51ACF  Amount of penalty 

10 

 

  The penalty to be specified in an infringement notice that is to be 

11 

issued to a person, in relation to an alleged contravention of a civil 

12 

penalty provision of an industry code, must be a penalty equal to 

13 

the following amount: 

14 

 

(a)  if the person is a body corporate--50 penalty units; 

15 

 

(b)  otherwise--10 penalty units. 

16 

51ACG  Effect of compliance with an infringement notice 

17 

 

(1)  This section applies if: 

18 

 

(a)  an infringement notice for an alleged contravention of a civil 

19 

penalty provision of an industry code is issued to a person; 

20 

and 

21 

 

(b)  the person pays the penalty specified in the infringement 

22 

notice within the infringement notice compliance period and 

23 

in accordance with the notice; and 

24 

 

(c)  the infringement notice is not withdrawn under 

25 

section 51ACJ. 

26 

 

(2)  The person is not, merely because of the payment, regarded as 

27 

having contravened the civil penalty provision of the industry code. 

28 

 

(3)  No proceedings (whether criminal or civil) may be started or 

29 

continued against the person, by or on behalf of the 

30 

Commonwealth, in relation to the alleged contravention of the civil 

31 

penalty provision of the industry code. 

32 

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51ACH  Effect of failure to comply with an infringement notice 

1 

 

  If: 

2 

 

(a)  an infringement notice for an alleged contravention of a civil 

3 

penalty provision of an industry code is issued to a person; 

4 

and 

5 

 

(b)  the person fails to pay the penalty specified in the 

6 

infringement notice within the infringement notice 

7 

compliance period and in accordance with the notice; and 

8 

 

(c)  the infringement notice is not withdrawn under 

9 

section 51ACJ; 

10 

the person is liable to proceedings under section 76 in relation to 

11 

the alleged contravention of the civil penalty provision of the 

12 

industry code. 

13 

51ACI  Infringement notice compliance period for infringement 

14 

notice 

15 

 

(1)  Subject to this section, the infringement notice compliance period 

16 

for an infringement notice is the period of 28 days beginning on the 

17 

day after the day that the infringement notice is issued by the 

18 

Commission. 

19 

 

(2)  The Commission may extend, by notice in writing, the 

20 

infringement notice compliance period for the infringement notice 

21 

if the Commission is satisfied that it is appropriate to do so. 

22 

 

(3)  Only one extension may be given and the extension must not be for 

23 

longer than 28 days. 

24 

 

(4)  Notice of the extension must be given to the person who was 

25 

issued the infringement notice. 

26 

 

(5)  A failure to comply with subsection (4) does not affect the validity 

27 

of the extension. 

28 

 

(6)  If the Commission extends the infringement notice compliance 

29 

period for an infringement notice, a reference in this Division to 

30 

the infringement notice compliance period for an infringement 

31 

notice is taken to be a reference to the infringement notice 

32 

compliance period as so extended. 

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51ACJ  Withdrawal of an infringement notice 

1 

Representations to the Commission 

2 

 

(1)  A person to whom an infringement notice has been issued for an 

3 

alleged contravention of a civil penalty provision of an industry 

4 

code may make written representations to the Commission seeking 

5 

the withdrawal of the infringement notice. 

6 

 

(2)  Evidence or information that the person, or a representative of the 

7 

person, gives to the Commission in the course of making 

8 

representations under subsection (1) is not admissible in evidence 

9 

against the person or representative in any proceedings (other than 

10 

proceedings for an offence based on the evidence or information 

11 

given being false or misleading). 

12 

Withdrawal by the Commission 

13 

 

(3)  The Commission may, by written notice (the withdrawal notice) 

14 

given to the person to whom an infringement notice was issued, 

15 

withdraw the infringement notice if the Commission is satisfied 

16 

that it is appropriate to do so. 

17 

 

(4)  Subsection (3) applies whether or not the person has made 

18 

representations seeking the withdrawal. 

19 

Content of withdrawal notices 

20 

 

(5)  The withdrawal notice must state: 

21 

 

(a)  the name and address of the person; and 

22 

 

(b)  the day on which the infringement notice was issued to the 

23 

person; and 

24 

 

(c)  that the infringement notice is withdrawn; and 

25 

 

(d)  that proceedings under section 76 may be started or 

26 

continued against the person in relation to the alleged 

27 

contravention of the civil penalty provision of the industry 

28 

code. 

29 

Schedule 1  Amendments 

   

 

 

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Competition and Consumer Amendment (Industry Code Penalties) Bill 

2014 

No.      , 2014 

 

Time limit for giving withdrawal notices 

1 

 

(6)  To be effective, the withdrawal notice must be given to the person 

2 

within the infringement notice compliance period for the 

3 

infringement notice. 

4 

Refunds 

5 

 

(7)  If the infringement notice is withdrawn after the person has paid 

6 

the penalty specified in the infringement notice, the Commission 

7 

must refund to the person an amount equal to the amount paid. 

8 

4  Section 51AE 

9 

Before "The", insert "(1)". 

10 

5  At the end of section 51AE 

11 

Add: 

12 

 

(2)  If regulations prescribe an industry code, the industry code may 

13 

prescribe pecuniary penalties not exceeding 300 penalty units for 

14 

civil penalty provisions of the industry code. 

15 

6  Subparagraph 76(1)(a)(iii) 

16 

Repeal the subparagraph, substitute: 

17 

 

(iii)  section 95AZN; 

18 

 

(iv)  a civil penalty provision of an industry code; or 

19 

7  After paragraph 76(1A)(c) 

20 

Insert: 

21 

 

(ca)  for each act or omission to which this section applies that 

22 

relates to a civil penalty provision of an industry code--the 

23 

amount set out in the civil penalty provision of the industry 

24 

code; and 

25 

8  After paragraph 76(1B)(a) 

26 

Insert: 

27 

 

(aaa)  for each act or omission to which this section applies that 

28 

relates to a civil penalty provision of an industry code--the 

29 

Amendments  Schedule 1 

   

 

 

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amount set out in the civil penalty provision of the industry 

1 

code; and 

2