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2010 - 2011 - 2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
GREENHOUSE AND ENERGY MINIMUM STANDARDS
(REGISTRATION FEES) BILL 2012
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Climate Change and Energy Efficiency,
the Honourable Greg Combet AM MP)
GREENHOUSE AND ENERGY MINIMUM STANDARDS
(REGISTRATION FEES) BILL 2012
GENERAL OUTLINE
Purpose
The Greenhouse and Energy Minimum Standards Bill 2012 will establish a national legislative
framework for regulating the energy efficiency of products supplied or used within Australia. This
national framework will allow the work of Australia's Equipment Energy Efficiency (E3) Program to
continue under a more comprehensive and consistent framework. The Greenhouse and Energy
Minimum Standards (Registration Fees) Bill 2012 (the GEMS (Registration Fees) Bill) will
accompany the Greenhouse and Energy Minimum Standards Bill 2012, to establish legislative power
to charge registration fees as part of the E3 Program.
Background
Australia's E3 Program has developed into a popular and effective mechanism for reducing energy
costs and greenhouse gas emissions. The E3 Program has proven so successful that, in 2005, 83% of
surveyed Australian consumers reported referring to the Energy Rating Labels when purchasing major
household appliances. In 2010, the energy savings arising from the more efficient air conditioners and
refrigerators required by the E3 Program was calculated at 6.6 terawatt hours, a benefit valued at over
$1 billion.
Australian governments recognise the value of the E3 Program for improving energy efficiency and
the potential to achieve greater efficiencies by moving the Program to a more consistent, national
footing. For these reasons, the Australian Government undertook to expand the E3 Program beyond
electrical equipment as part of its Solar SchoolsSolar Homes election commitment in 2007. This
commitment was reinforced in July 2009 when the Council of Australian Governments issued the
National Strategy on Energy Efficiency, with a commitment to establish national legislation to
regulate product energy efficiency.
The national legislation will allow the E3 Program to continue on a more consistent and
comprehensive basis, with an expanded range of products and a strengthened compliance regime.
Under the new framework, the E3 Program will continue to levy registration fees from businesses that
deal with regulated products. These fees will recover a portion of the costs incurred administering the
Program, for example, the cost of processing registration applications and costs incurred monitoring
compliance with the Act.
In contrast to fees to recover the cost of processing applications, fees charged to recover costs of the
compliance monitoring regime may constitute a levy by a public authority for public purposes, not a
fee for services rendered. Fees that are not for services rendered may constitute a tax so, in accordance
with section 55 of the Australian Constitution, legislative authority to charge such fees is established
in a law dealing solely with this issue. For these reasons the GEMS (Registration Fees) Bill is drafted
separately to, but in support of, the Greenhouse and Energy Minimum Standards Bill 2012 and the
expanded E3 Program.
Financial Implications
This Bill will authorise registration fees under the E3 Program that are forecast to accrue
$11.6 million over the five financial years from 2012-2013 to 2016-2017. Fee revenue will be Budget
neutral as the Australian Government directed, in the 2012-2013 Budget, that income from
registration fees under this Act would offset the costs of the E3 Program.
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2. REGULATORY IMPACT STATEMENT
Registration fees are charged under the existing E3 Program. The GEMS (Registration Fees) Bill
therefore does not introduce a proposal that carries any new regulatory burden for Australian
individuals or businesses. For these reasons the Office of Best Practice Regulation has advised that a
formal Regulatory Impact Statement is not required for the GEMS (Registration Fees) Bill.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Greenhouse and Energy Minimum Standards (Registration Fees) Bill 2012
This Bill 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 Bill
The GEMS (Registration Fees) Bill 2012 accompanies the Greenhouse and Energy Minimum
Standards Bill 2012. Together, these Bills will establish a national framework to regulate
energy efficiency and product labelling standards, transferring Australia's Equipment Energy
Efficiency (E3) Program to a national legislative basis.
The GEMS (Registration Fees) Bill establishes the legislative basis for the Regulator,
established by the main GEMS Bill, to levy fees from businesses registering product models
under the main GEMS Bill. The GEMS Bill requires registration of regulated product models
to maintain the existing practice of the E3 Program, ensuring the Regulator can monitor the
range of regulated product models that enter the Australian market.
Registration fees will recover costs incurred under the E3 Program, including the costs of
processing registration applications and a portion of the costs of monitoring compliance with
the GEMS Bill. As compliance costs may not constitute a direct fee for service but a charge
to raise funds for public purposes, the GEMS (Registration Fees) Bill establishes legislative
power to impose fees as taxes. Consistent with section 55 of the Australian Constitution, the
power to establish fees as taxes is established separate from other provisions.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
The Hon Greg Combet AM MP
Minister for Climate Change and Energy Efficiency
Minister for Industry and Innovation
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Notes on Clauses
Part 1Preliminary
Clause 1 Short Title
1. Clause 1 establishes the short title of the Act as the Greenhouse and Energy Minimum
Standards (Registration Fees) Act 2012.
Clause 2 Commencement
2. Clause 2 establishes the commencement date for various portions of the Act. The
preliminary sections 1 and 2 commence on the day the Act receives Royal Assent,
while the remainder of the Act commences on 1 October 2012 to coincide with the
commencement of the Greenhouse and Energy Minimum Standards Act 2012.
Clause 3 Act binds the Crown
3. Clause 3 ensures the Act binds the Crown, to the extent the Crown can be bound to pay
fees to register products for use or supply under the Equipment Energy Efficiency
Program.
Clause 4 External Territories
4. Clause 4 extends the operation of the Act to Australia's external territories, ensuring
that registration fees can be levied on persons located in, and with regard to
applications made in, the external territories.
Clause 5 Extraterritorial application
5. Clause 5 extends the operation of the Act beyond Australia's territorial jurisdiction,
ensuring that registration fees can be levied on persons located overseas and with
regard to applications made overseas.
Clause 6 Act does not impose tax on property of a state
6. The Act is created with an expectation that governments - federal, state and territory -
would pay registration fees for any product models that a government registers under
the Greenhouse and Energy Minimum Standards Act 2012.
7. However, should a question arise whether this would amount to taxation imposed on
property belonging to a state, clause 6 ensures the Act should be construed as not
intending to impose taxation on property belonging to a state. If registration fees were
found to be a form of taxation on property of a state, clause 6 would excuse the state
from any legal obligation to pay those fees. Nothing would prevent a state voluntarily
paying registration fees.
Clause 7 Definitions
8. Clause 7 provides definitions of particular terms used within the Act, to assist
interpretation.
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Part 2Registration fees
Clause 8 Imposition of registration fees
9. Clause 8 permits the Regulator to specify fees for applications to register products
under the Greenhouse and Energy Minimum Standards Act 2012. Registration fees may
be expressed as a single fee, or as two or more fees (e.g. one fee related to the costs of
registration services and one fee related to compliance monitoring costs).
10. Fees must be specified in a legislative instrument, as opposed to specified in this Act or
the Greenhouse and Energy Minimum Standards Act 2012. This will help to strike the
correct balance between providing certainty for people attempting to plan registration
fee payments and ensuring flexibility to alter fees as necessary in the future. Specifying
fees in legislative instruments ensures that fees are developed in a transparent manner,
subject to regulatory impact assessment and tabled in Parliament for the public record.
Clause 9 Matters relating to amount of fees
11. Clause 9 permits legislative instruments to specify registration fees by nominating an
amount to be paid or a method or formula for calculating registration fees. Specifying
fees in legislative instruments, as opposed to on the face of the Act itself, ensures
flexibility to change fees over time. Specifying fees in legislative instruments also
ensures that fees are subject to impact assessments and tabled in Parliament.
12. Clause 9 states that registration fees need not be calculated with reference to the cost of
registration services and compliance monitoring. This is not intended to mean that fees
are not fundamentally a cost recovery mechanism, but that the costs recovered under
registration fees need not be related to these activities only and may relate to other
under the Program activities.
13. Rather than specify a maximum fee in dollar terms, the Act clarifies that registration
fees are for the purpose of cost recovery, meaning registration fees should never exceed
the reasonable costs taken into account when specifying the amount of registration fees.
At the time of drafting, the Act anticipates that the costs of processing registration
applications and the costs of monitoring compliance with the Act will be taken into
account when specifying the amount of registration fees. The Act specifies that other
costs also may be taken into account in determining the registration fees.
Clause 10 Regulations
14. Clause 10 permits the Governor-General to make Regulations to prescribe any matters
convenient or necessary to carry out or give effect to the Greenhouse and Energy
Minimum Standards (Registration Fees) Act 2012.
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