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2022
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (IMPORT LEVY)
AMENDMENT BILL 2022
OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (MANUFACTURE
LEVY) AMENDMENT BILL 2022
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for the Environment and Water,
the Hon. Tanya Plibersek MP)
OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (IMPORT LEVY)
AMENDMENT BILL 2022
OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (MANUFACTURE
LEVY) AMENDMENT BILL 2022
GENERAL OUTLINE
The Ozone Protection and Synthetic Greenhouse Gas Management (Import Levy)
Amendment Bill 2022 (the Import Levy Amendment Bill) and the Ozone Protection and
Synthetic Greenhouse Gas Management (Manufacture Levy) Amendment Bill 2022 (the
Manufacture Levy Amendment Bill) complement the Ozone Protection and Synthetic
Greenhouse Gas Management Reform (Closing the Hole in the Ozone Layer) Bill 2022 (the
OPSGG Bill) by making minor changes to the existing cost recovery model under the Ozone
Protection and Synthetic Greenhouse Gas Management (Import Levy) Act 1995 (the Import
Levy Act) and Ozone Protection and Synthetic Greenhouse Gas Management (Manufacture
Levy) Act 1995 (the Manufacture Levy Act).
These changes are to:
• remove the caps on the rate that levies can be set at. This would ensure the
Commonwealth's likely costs in connection with the administration of the Ozone
Protection and Synthetic Greenhouse Gas Management Program (OPSGG Program)
are able to be appropriately recovered. In order to ensure that the levy rate is
appropriate and does not exceed the Commonwealth's expected costs, before the
Governor-General makes regulations setting the rate, the Minister would have to be
satisfied that the levy rate would recover no more than the Commonwealth's likely
costs in connection with the administration of the OPSGG Program. This is
consistent with the Australian Government Charging Framework;
• remove the existing levy on the import of ODS (ozone depleting substance)
equipment;
• allow for the Minister to delegate the power to exempt a person from paying the levy
to appropriate Departmental officials;
• make other minor and machinery changes to improve the operation of the Act and to
modernise and update the drafting style.
The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the OPSGG
Act) implements Australia's obligations under the Vienna Convention for the Protection of
the Ozone Layer and its associated Montreal Protocol on Substances that Deplete the Ozone
Layer (the Montreal Protocol), as well as the United Nations Framework Convention on
Climate Change and its Kyoto Protocol, including by establishing a licensing scheme for the
import, export, manufacture and end use of scheduled substances. The OPSGG Bill would
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amend the OPSGG Act to update and streamline the Act to ensure that the OPSGG Program
can effectively implement Australia's international obligations. The Manufacture Levy Act,
with the Import Levy Act, allow the administration of the OPSGG Program to be cost
recovered as appropriate.
FINANCIAL IMPACT STATEMENT
There would be no immediate financial impact from the proposed amendments. The
Department intends to review the OPSGG Program cost recovery model following
amendment of the legislation. Any change to the levy rate made through regulations would
take place after the review of cost recovery arrangements and would be consistent with the
Australian Government Charging Framework.
Removal of the levy on import of ODS equipment would have no financial impact as imports
of this equipment are at very low levels and no importers of this equipment have been liable
for levy payments since the introduction of the low levy waiver on 1 January 2018.
The cost recovery implementation statement can be found on the Department's website:
https://www.awe.gov.au/environment/protection/ozone/publications/cris-2018-19.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
The Bills are 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.
The full statements of compatibility with human rights are attached to this explanatory
memorandum.
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OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (IMPORT LEVY)
AMENDMENT BILL 2022
NOTES ON CLAUSES
Clause 1 - Short title
1. Clause 1 would provide that the Bill may be cited as the Ozone Protection and
Synthetic Greenhouse Gas (Import Levy) Amendment Act 2022 (Import Levy
Amendment Bill).
Clause 2 - Commencement
2. Clause 2 would have the effect that Clauses 1 to 3 of the Import Levy Amendment Bill
would commence on the day after it receives the Royal Assent. Schedule 1 (which
contains the proposed amendments) would commence at the same time as Schedule 1 to
the Ozone Protection and Synthetic Greenhouse Gas Management Reform (Closing the
Hole in the Ozone Layer) Act 2022 (OPSGG Amendment Act).
3. However, the Import Levy Amendment Bill would not commence if the OPSGG
Amendment Act does not commence.
Clause 3 - Schedules
4. Clause 3 would provide that the legislation that is specified in a Schedule to the Import
Levy Amendment Bill is amended or repealed as set out in the applicable items in the
Schedule concerned, and any other items in a Schedule has effect according to its terms.
5. This clause would allow the Import Levy Amendment Bill to amend the Ozone
Protection and Synthetic Greenhouse Gas (Import Levy) Act 1995 (the Import Levy Act)
as set out in Schedule 1.
SCHEDULE 1 - AMENDMENTS
Item 1
6. Item 1 would amend the long title of the Import Levy Act to omit the reference to "ODS
equipment". This amendment would be consequential to item 19 which would repeal
section 4B of the Import Levy Act to remove the levy on the import of ODS equipment.
Item 2
7. Item 2 would amend the heading of section 2A of the Import Levy Act to omit
"Definition" and substitute "Definitions". This would be consequential to the
amendments made by item 3, which would insert more definitions into this section.
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Item 3
8. Item 3 would amend section 2A of the Import Levy Act to insert a number of new
definitions for terms that are used in this Schedule.
9. One of the definitions would be amount which would be defined as including a nil
amount. This would remove any doubt that the regulations could set the levy amounts at
nil if considered appropriate.
Item 4
10. Item 4 would repeal existing section 3 of the Import Levy Act and substitute a new
section 3.
11. New section 3 would clarify how expressions used in the Import Levy Act should be
interpreted.
12. New subsection 3(1) would provide that expressions used in the Import Levy Act have
the same meaning as they have in the Ozone Protection and Synthetic Greenhouse Gas
Management Act 1989 (the OPSGG Act).
13. New subsection 3(2) would clarify that, without limiting subsection 3(1), section 9 of the
OPSGG Act applies in relation to the Import Levy Act in the same way as that section
applies in relation to the OPSGG Act. Section 9 of the OPSGG Act sets out what is
included in, and what is excluded from, the meaning of bulk scheduled substances and
equipment for the purposes of the OPSGG Act. The purpose of new subsection 3(2) of
the Import Levy Act would be to ensure that the meaning of those terms would be
consistent between the Import Levy Act and the OPSGG Act.
14. New subsection 3(3) would clarify that, in determining for the purposes of the Import
Levy Act whether a licence allows the licensee to carry out an activity, any suspension
of licence is to be disregarded. The note following this subsection would refer readers to
subsection 19D(4) of the OPSGG Act (as would be amended by the OPSGG Bill) for the
effect of a licence suspension.
15. The purpose of this subsection would be to ensure that the Import Levy Act would still
apply in circumstances where a person imports scheduled substances or equipment under
a licence which is later suspended, or imports scheduled substances or equipment
purportedly under a licence which is suspended. It is intended that the fact that the
person's licence was suspended should not remove their liability to pay the levy in
respect of any imports occurring before or during that suspension.
16. A person who imports scheduled substances or equipment under a licence that is
suspended may also, separately, be liable for an offence or civil penalty under the
OPSGG Act.
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Item 5
17. Section 3A of the Import Levy Act deals with the imposition of a levy on the import of
SGGs.
18. Subject to limited exceptions, subsection 3A(1) imposes a levy on a person who:
• holds a controlled substances licence that allows the person to import SGGs,
and
• imports an SGG during a reporting period in which the licence is in force.
The levy is imposed in respect of the import.
19. Item 5 would add a note following subsection 3A(1) of the Import Levy Act to clarify
that this subsection applies only in relation to the import of SGGs that are bulk scheduled
substances under subsection 3(2) of the Import Levy Act and subsection 9(1) of the
OPSGG Act. The note would also refer readers to section 4A of the Import Levy Act for
SGG equipment imported under an equipment licence.
Item 6
20. Item 6 would amend subsection 3A(2) to omit "circumstances that are prescribed for the
purposes of subsection 13(3) of the Ozone Protection and Synthetic Greenhouse Gas
Management Act 1989" and substitute a reference to circumstances, or for a purpose,
prescribed for the purposes of subsection 13AA(2) of the OPSGG Act.
21. This is a consequential amendment intended to update the cross-reference to the relevant
section of the OPSGG Act, as it would be amended.
Item 7
22. Existing subsection 3A(5) of the Import Levy Act clarifies that subsection 3A(1), which
imposes levy on imports of SGG, does not apply to the import of an SGG contained in
ODS equipment or SGG equipment. This is because section 3A is intended to only cover
imports of SGGs that are bulk scheduled substances.
23. Item 7 would repeal existing subsection 3A(5) of the Import Levy Act. This provision is
redundant because paragraph 3A(1)(a) already specifies that levy is imposed on a
licensee if the licensee holds a controlled substances licence allowing the import of
SGGs. A controlled substances licence is only issued for the import of bulk scheduled
substances. Therefore, paragraph 3A(1)(a) already achieves the same outcome as
existing subsection 3A(5).
Item 8
24. Existing subsection 3A(7) of the Import Levy Act sets out a formula to work out the
amount of the levy imposed under subsection 3A(1). That formula is the number of
tonnes of SGG multiplied by the prescribed rate. The prescribed rate is defined in
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existing subsection 3A(7) as $165 or, if a lower amount is prescribed by the
regulations, that amount. This means that, under existing subsection 3A(7), the
amount of the levy imposed on the import of SGGs is capped at $165.
25. Item 8 would amend the definition of prescribed rate in subsection 3A(7) of the
Import Levy Act to remove the $165 cap and allow the prescribed rate to be an
amount prescribed in the regulations.
26. The purpose of the levy (in combination with the other levies imposed by the Import
Levy Act and the Ozone Protection and Synthetic Greenhouse Gas (Manufacture
Levy) Act 1995 (the Manufacture Levy Act)) is to recover the costs associated with
administering the OPSGG Program, which is necessary to ensure Australia remains in
compliance with its international obligations.
27. The cap has been in place since the levy was instituted in 2003. As such, it does not
reflect the current cost of administering the OPSGG Program. Removing the cap would
allow the levy to be adjusted periodically so that activities under the OPSGG Act and
regulations are able to be fully cost recovered.
28. It is appropriate for the prescribed rate to be an amount prescribed by regulations.
Consistent with Australian Government policy, the amount of any prescribed rate would
be set at a level that is designed to recover, in combination with the other levies imposed
by the Import Levy Act and the Manufacture Levy Act, no more than the estimated cost
of administering the OPSGG Program. A requirement to this effect would be inserted by
item 11 of this Schedule.
29. It is not intended that the rate of the levy would be set at an amount that would recover
the costs of assessing licence applications, as this amount would be covered by the
licence application fees set by the OPSGG Act and regulations.
Item 9
30. Subsection 3A(9) of the Import Levy Act allows the Minister to, by written notice,
exempt a licensee from paying the levy imposed under subsection 3A(1) in respect of the
import of an SGG in certain circumstances.
31. Under existing subparagraph 3A(9)(b)(iii) of the Import Levy Act, the Minister may
exempt a licensee from paying the levy imposed under subsection 3A(1) in respect of the
import of an SGG if the Minister is satisfied that the SGG is to be used in equipment
prescribed for the purposes of paragraph 8D(1)(c) of the OPSGG Act.
32. Existing paragraph 8D(1)(c) of the OPSGG Act allows the regulations to prescribe
equipment that was taken, for the purposes of that Act, not to be SGG equipment. The
OPSGG Bill would repeal section 8D of the OPSGG Act and move the definition of
SGG equipment to section 7 of that Act (dealing with definitions). The new definition of
SGG equipment in section 7 of the OPSGG Act would not allow the regulations to
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continue to prescribe equipment that is taken not to be SGG equipment; however the
same effect would be achieved by the regulations being able to prescribe equipment that
is not subject to the prohibitions on import or manufacture.
33. Item 9 would amend existing subparagraph 3A(9)(b)(iii) of the Import Levy Act to
replace the reference to equipment prescribed for the purposes of (repealed) paragraph
8D(1)(c) of the OPSGG Act, with a reference to equipment that is prescribed for the
purpose of paragraph 13(4)(a) or paragraph 13AA(6)(a).
34. This would mean subparagraph 3A(9)(b)(iii) continues to have the effect that where the
import or manufacture of equipment containing a scheduled substance does not require a
licence (and therefore does not require payment of a levy), the Minister is also able to
exempt a person from payment of the levy for the import of an SGG that is being
imported as a bulk scheduled substance for use in that same equipment.
Item 10
35. Under existing subparagraph 3A(9)(b)(iv), the Minister may exempt a licensee from
paying the levy imposed under subsection 3A(1) in respect of the import of an SGG if
the Minister is satisfied that the SGG is to be used in the manufacture of equipment
specified in an instrument in force under paragraph 8D(1)(d) of the OPSGG Act.
36. Existing paragraph 8D(1)(d) of the OPSGG Act allows the Minister to make a legislative
instrument specifying equipment that was taken, for the purposes of that Act, not to be
SGG equipment. The OPSGG Bill would repeal section 8D of the OPSGG Act and
move the definition of SGG equipment to section 7 of that Act (dealing with definitions).
The new definition of SGG equipment would be inserted into section 7 of the OPSGG
Act by the OPSGG Bill, which does not contain an equivalent of repealed paragraph
8D(1)(d). This would have the effect that the Minister would no longer be able to make a
legislative instrument specifying equipment that was taken, for the purposes of that Act,
not to be SGG equipment.
37. Item 10 would amend existing subsection 3A(9) of the Import Levy Act to repeal
subparagraph 3A(9)(b)(iv) as this provision is now redundant. This would be a
consequential amendment to the repeal of section 8D of the OPSGG Act by the OPSGG
Bill.
Item 11
38. Existing subsections 3A(12) and (13) of the Import Levy Act set limits on when the
Minister can make a recommendation to the Governor-General about regulations to be
made for the purposes of subsection 3A(3) or subparagraph 3A(9)(b)(v). Subsection
3A(3) allows the regulations to exempt imports of SGGs for prescribed purposes from
the levy imposed under subsection 3A(1). Subparagraph 3A(9)(b)(v) has the effect that
the Minister may exempt a licensee from paying the levy imposed under subsection
3A(1) in respect of the import of an SGG if the Minister is satisfied that the SGG is to be
used for a purpose prescribed by the regulations.
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39. Item 11 would repeal existing subsections 3A(12) and (13) and substitute new
subsections 3A(12), (13) and (14).
40. New subsection 3A(12) would allow the Minister to, by writing, delegate the Minister's
power in subsection 3A(9) (to exempt a licensee from paying the levy) to the Secretary,
Senior Executive Service employees and APS employees in an Executive Level 2
position in the Department. In exercising this power, delegates must comply with any
directions of the Minister (new subsection 3A(13)). This will ensure that the power in
subsection 3A(9) is exercised appropriately and consistently.
41. Effective delegation is a fundamental component of good governance and risk
management. It enables powers and functions (including decision-making) to be
exercised by persons other than the person to whom the power or function is vested in
circumstances where it is not practical or reasonable for the one person to exercise the
power or function themselves.
42. Limiting delegations to officials at Executive Level 2 ensures that only persons with
appropriate seniority and expertise would be exercising the power in subsection 3A(9) to
exempt a person from paying the levy. Delegating powers and functions to Executive
Level officers is consistent with the Australian Administrative Law Guide which
provides that it may be appropriate for such officers to make decisions, particularly
where there is a limited exercise of discretion (such as subsection 3A(9)). This would not
prevent significant decisions being made by persons of higher classifications (such as
SES employees or acting SES employees) and it is intended that such limitations would
be operationally imposed in the administration of the Import Levy Act.
43. The note after new subsection 3A(12) refers the reader to the relevant provisions of the
Acts Interpretation Act 1901 that deal with delegations.
44. New subsection 3A(14) would update and modernise the drafting of the requirements in
existing subsection 3A(12) and (13) so that they are easier to understand. It would also
add requirements that must be satisfied before the Minister can make a recommendation
to the Governor-General about regulations to be made for the purpose of subsection
3A(7) (setting the prescribed rate in respect of the levy to be imposed on the import of
SGGs).
45. Under table item 1 of the table in new subsection 3A(14), before the Governor-General
makes regulations for the purpose of subsection 3A(3) (prescribing a purpose for which
the import of SGGs is exempt from the levy), the Minister would have to be satisfied
that:
• it would be impracticable to impose levy on the import of an SGG that is to be
used for a purpose to be prescribed by those regulations; or
• a purpose to be prescribed by those regulations is a medical, veterinary, health
or safety purpose.
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This table item would reflect the requirements in existing subsection 3A(12).
46. Under table item 2 of the table in new subsection 3A(14), before the Governor-
General makes regulations for the purpose of subsection 3A(7) (prescribing the rate of
the levy imposed on the import of SGGs), the Minister would have to be satisfied that
the effect of the Import Levy Act and the Manufacture Levy Act would be to recover
no more than the Commonwealth's likely costs of the kind in paragraphs 65D(a), (b),
(c) or (ca) of the OPSGG Act, being costs that are unlikely to be offset by fees
charged under the OPSGG Act or regulations made under it. These costs relate to the
administration of the OPSGG Program. This requirement would ensure that the levy
rate is appropriate and does not exceed the Commonwealth's expected costs,
consistent with the Australian Government Charging Framework.
47. The rate of the levy would not be set at an amount that would recover the costs of
assessing licence applications, as this amount would be covered by the licence
application fees set by the OPSGG Act and regulations.
48. Under table item 3 of the table in new subsection 3A(14), before the Governor-General
makes regulations for the purpose of subparagraph 3A(9)(b)(v) (prescribing a purpose
for which Minister may decide to exempt the licensee from paying the levy for the
import of SGGs), the Minister would have to be satisfied that:
• it would be impracticable to require payment of levy on the import of an SGG
that is to be used for a purpose to be prescribed by those regulations; or
• a purpose to be prescribed by those regulations is a medical, veterinary, health
or safety purpose.
This table item would reflect the requirement in existing subsection 3A(13).
Item 12
49. Section 4 of the Import Levy Act deals with the imposition of a levy on the import of
substances other than SGGs. Subject to limited exceptions, subsection 4(1) imposes a
levy on a person who:
• holds a controlled substances licence that allows the licensee to import a
substance or substances (other than an SGG); and
• imports any such substance during a reporting period during which the licence
is in force.
The levy is imposed in respect of the import.
50. Subsection 4(1) also provides for the rate of the levy imposed in respect of the import of
substances other than SGGs to be prescribed in the regulation.
10
51. Item 12 would amend existing subsection 4(1) of the Import Levy Act to omit "at the
rate prescribed by the regulations".
52. The effect of this amendment would be to allow the operation of new subsection 4(5), as
amended by item 15, which would enable the regulations to prescribe either the rate of
levy, or a method for working out the rate of the levy. This would provide flexibility, as
there may be circumstances where it is appropriate to prescribe a method rather than a
set amount. It would also allow for consistency with the levies imposed under section 3A
(in respect of imports of SGGs) and 4A (in respect of imports of SGG equipment), both
of which are worked out by a method set out in the legislation.
Item 13
53. Item 13 would add a note at the end of subsection 4(1) of the Import Levy Act to clarify
that subsection 4(1) would apply only in relation to the import of scheduled substances
(other than SGGs) that are bulk scheduled substances. The note would also refer readers
to subsection 3(2) of the Import Levy Act and subsection 9(1) of the OPSGG Act for an
explanation of the term bulk scheduled substance.
Item 14
54. Existing subsection 4(2) of the Import Levy Act clarifies that subsection 4(1), which
imposes levy on imports of substances other than an SGG, does not apply to the import
of an SGG contained in ODS equipment or SGG equipment. This is because section 4 is
intended to only cover imports of substances other than SGGs that are bulk scheduled
substances.
55. Item 14 would repeal existing subsection 4(2) of the Import Levy Act. This provision is
redundant because paragraph 4(1)(a) already specifies that levy is imposed on a licensee
if the licensee holds a controlled substances licence allowing the import of a substance
other than SGGs. A controlled substances licence is only issued for the import of bulk
scheduled substances. Therefore, paragraph 4(1)(a) already achieves the same outcome
as existing subsection 4(2).
Item 15
56. Existing subsection 4(5) of the Import Levy Act imposes a cap on the levy that can be
imposed in respect of the import of HCFCs ($3000 per ODP tonne) or methyl bromide
($135 per tonne).
57. Item 15 would amend section 4 of the Import Levy Act to repeal existing subsection 4(5)
(and the note following it) and replace it with a new subsections 4(5), (6) and (7).
58. New subsection 4(5) would provide that the amount of levy imposed by subsection 4(1)
in a reporting period is the amount prescribed, or worked out in accordance with a
method prescribed, by the regulations. This would have the effect of removing the cap
11
on the levy that could be prescribed in respect of the import of HCFCs and methyl
bromide.
59. New subsection 4(6) would require that, before the Governor General makes regulations
for the purposes of subsection 4(1), the Minister would have to be be satisfied that the
effect of the Import Levy Act and the Manufacture Levy Act would be to recover no
more than the Commonwealth's likely costs of the kind mentioned in paragraph 65D(a),
(b), (c) or (ca) of the OPSGG Act. These costs relate to the administration of the OPSGG
Program.
60. New subsection 4(7) would provide that for the purposes of new subsection 4(6), any
costs that are likely to be offset by fees charged under the OPSGG Act or regulations
made under it should be disregarded.
61. The purpose of the levy imposed by section 4 (in combination with the other levies
imposed by the Import Levy Act and the Manufacture Levy Act) is to recover the costs
associated with administering the OPSGG Program, which is necessary to ensure
Australia remains in compliance with its international obligations.
62. The cap on levies in respect of the import of HCFCs and methyl bromide has been in
place since 2003. As such, it does not reflect the current cost of administering the
OPSGG Program. Removing the cap allows the levy to be adjusted periodically so that
activities under the OPSGG Act and regulations are able to be fully cost recovered in the
future.
63. It is appropriate for the rate of the levy to be prescribed by regulations. Consistent with
Australian Government policy and new subsection 4(6), the amount of any prescribed
rate would be set at a level that is designed to recover (in combination with the other
levies imposed by the Import Levy Act and the Manufacture Levy Act) no more than the
estimated cost of administering the OPSGG Program.
64. The levy would not be set at an amount that would recover the costs of assessing licence
applications, as this amount would be covered by the licence application fees set by the
OPSGG Act and regulations.
Item 16
65. Section 4A of the Import Levy Act deals with the imposition of a levy on the import of
SGG equipment. SGG equipment is defined in section 7 of the OPSGG Act as
equipment that contains an SGG or that uses an SGG in its operation (and does not
contain or use an ODS).
66. Subject to limited exceptions, subsection 4(1) imposes a levy on a person who:
• holds an equipment licence that allows the person to import SGG equipment;
and
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• imports SGG equipment during a reporting period during which the licence is
in force.
The levy is imposed in respect of the import.
67. Subsections 4A(2) and (3) provide that subsection 4A(1) does not apply to the import of
SGG equipment prescribed in the regulations (paragraph 4A(2)(a)), SGG equipment
specified in a legislative instrument made by the Minister (paragraph 4A(2)(b)) or if the
import is covered by the private or domestic use, or low volume import exemption as
outlined by subsections 13(5) and (6) of the OPSGG Act. This means that no levy is
imposed in respect of such SGG equipment.
68. The OPSGG Bill would amend section 13 of the OPSGG Act (and insert new sections
13AA and 13AB) to provide further clarity to when the import, manufacture or export of
scheduled substances or equipment is prohibited without a licence, and to update and
modernise the drafting style. New section 13AA of the OPSGG Act would include
several additional exceptions from licensing requirements for the import of SGG
equipment, including where the equipment is imported temporarily, and where the SGG
equipment being imported is returned Australian equipment.
69. Item 16 would repeal existing subsections 4A(2) and (3) and substitute new subsections
4A(2) and 4A(3).
70. New subsection 4A(2) would provide that subsection 4A(1) does not apply to the import
of SGG equipment prescribed by the regulations. This would have the effect of removing
the ability of the Minister to specify equipment in a legislative instrument. This is
because it is no longer considered appropriate for the Minister to be able to exempt SGG
equipment from the levy imposed by subsection 4A(1) by way of legislative instrument.
It is sufficient that the regulations can prescribe SGG equipment that is exempt from the
levy.
71. New subsection 4A(3) would provide that subsection 4A(1) does not apply to the import
of SGG equipment if the import is covered by the low volume imports exemption under
subsection 13AA(4) of the OPSGG Act, as would be amended by the OPSGG Bill, or
the import is covered by the prescribed equipment exception, private or domestic use
exception, temporary imports exception, or returning Australian equipment exception (as
outlined in subsections 13AA(6), (7), (8) and (9) of the OPSGG Act, as would be
amended by the OPSGG Bill). This would ensure that imports of SGG equipment that do
not require a licence under the OPSGG Act likewise do not have levy imposed on the
import.
72. The intention of this amendment is to maintain the policy that imports of SGG
equipment that are exempt from licensing requirements under the OPSGG Act should
also be exempt from the levy imposed under subsection 4A(1) of the Import Levy Act.
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Item 17
73. Existing subsection 4A(5) of the Import Levy Act sets out a formula to work out the
amount of the levy imposed under subsection 4A(1). That formula is the number of
tonnes of SGG contained in the equipment multiplied by the prescribed rate. The
prescribed rate is defined as $165 or, if a lower amount is prescribed by the regulations,
that amount. This means that, under existing subsection 4A(5), the amount of the levy
imposed on the import of SGG equipment is capped at $165 per tonne.
74. Item 17 would amend the definition of prescribed rate in subsection 4A(5) of the Import
Levy Act to remove the $165 cap and allow the prescribed rate to be an amount
prescribed in the regulations.
75. The purpose of the levy (in combination with the other levies imposed by the Import
Levy Act and the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy)
Act 1995 (Manufacture Levy Act) is to recover the costs associated with administering
the OPSGG Program, which is necessary to ensure Australia remains in compliance with
its international obligations.
76. The cap has been in place since 2003. As such, it does not reflect the current cost of
administering the OPSGG Program. Removing the cap allows the levy to be adjusted
periodically so that activities under the OPSGG Act and regulations are able to be fully
cost recovered in the future.
77. It is appropriate for the prescribed rate to be an amount prescribed by regulations.
Consistent with Australian Government policy, the amount of any prescribed rate would
be set at a level that is designed to recover, in combination with the other levies imposed
by the Manufacture Levy Act and the Import Levy Act, no more than the estimated cost
of administering the OPSGG Program. A requirement to this effect would be inserted by
item 18.
78. It is not intended that the rate of the levy would be set at an amount that would recover
the costs of assessing licence applications, as this amount would be covered by the
licence application fees set by the OPSGG Act and regulations.
Item 18
79. Item 18 would amend section 4A of the Import Levy Act to repeal subsections 4A(8)
and (9) and substitute a new subsection 4A(8).
80. Existing subsection 4A(8) would no longer be required as a consequence of the
amendment made by item 16 of this Schedule.
81. Existing subsection 4A(9) of the Import Levy Act set limits on when the Minister can
make a recommendation to the Governor-General about regulations to be made for the
purposes of subsection 4A(7). Subsection 4A(7) allows the regulations to exempt SGG
in imported equipment from being included under the method in subsection 4A(5) for
14
working out the levy amount to be imposed on a licensee, if the SGG in the equipment is
for a prescribed purpose.
82. New subsection 4A(8) would update and modernise the drafting of the requirements in
existing subsection 4A(9) so that they are easier to understand. It would also add
requirements that must be satisfied before the Minister can make a recommendation to
the Governor-General about regulations to be made for the purpose of subsection 4A(5)
(setting the prescribed rate in respect of the levy to be imposed on the import of SGG
equipment).
83. Under table item 1 of the table in new subsection 4A(9), before the Governor-General
makes regulations for the purpose of subsection 4A(5), the Minister would have to be
satisfied that the effect of those regulations will be to recover no more than the
Commonwealth's likely costs of the kind mentioned in paragraphs 65D(a), (b), (c) or
(ca) of the OPSGG Act, being costs that are unlikely to be offset by fees charged under
the OPSGG Act or regulations made under it. These costs relate to the administration of
the OPSGG Program. This requirement would ensure that the levy rate is appropriate
and does not exceed the Commonwealth's expected costs, consistent with the Australian
Government Charging Framework.
84. The rate of the levy would not be set at an amount that would recover the costs of
assessing licence applications, as this amount would be covered by the licence
application fees set by the OPSGG Act and regulations.
85. Under table item 2 of the table in new subsection 4A(9), before the Governor-General
makes regulations for the purpose of subparagraph 4A(7) (prescribing a purpose for
which the import of SGG equipment is exempt from being included in the levy rate
calculation), the Minister would have to be satisfied that:
• it would be impracticable to work out an amount of levy by reference to an
SGG that is used, or for use, for a purpose to be prescribed by those
regulations; or
• a purpose to be prescribed by those regulations is a medical, veterinary, health
or safety purpose.
This item of the table reflects the requirement in existing subsection 4A(9).
Item 19
86. Item 19 would repeal sections 4B and 5 of the Import Levy Act and substitute a new
section 5 to deal with regulations.
87. Existing section 4B deals with the imposition of a levy on the import of ODS equipment.
Imposing this levy is no longer considered appropriate as licences for the import of ODS
equipment are only able to be granted under the OPSGG Act in very limited
circumstances (such as where the equipment is essential for medical, veterinary, defence,
15
industrial safety, public safety or scientific purposes, and no practical alternative exists).
It is not considered appropriate to impose a levy on the import of ODS equipment in
such circumstances.
88. New section 5 would rewrite the existing regulation-making power to remove the
reference to section 4B, which is being repealed. New section 5 would enable the
Governor-General to make regulations prescribing matters required or permitted by the
Import Levy Act to be prescribed by the regulations, or necessary or convenient to be
prescribed for carrying out or giving effect to the Import Levy Act.
Item 20
89. Item 20 would set out the application and saving provisions relating to the amendments
that would be made by this Schedule.
90. Sub-item 20(1) would provide that the amendments made by this Schedule would apply
in relation to reporting periods that start on or after the commencement of this item.
91. Sub-item 20(2) would provide that the Import Levy Act, as in force immediately before
the commencement of this item, continues to apply in relation to reporting periods
starting before that commencement.
92. Sub-item 20(3) would provide that regulations made under section 5 of the Import Levy
Act, that were in force immediately before the commencement of this item, continue in
force (subject to subitem 20(4)), and may be dealt with, as if they had been made under
section 5 of the Import Levy Act, as would be amended by this Schedule.
93. Subitem 20(4) would provide that the regulations made for the purposes of a specified
provision of the Import Levy Act that were in force immediately before the
commencement of this item, continue to be in force (and may be dealt with) as if they
had been made for the purposes of the corresponding provision of the Import Levy Act,
as would be amended by this Schedule. The table following this subitem would set out
the relevant old provisions of the Import Levy Act, and their corresponding new
provisions as would be amended by this Schedule.
94. The purpose of these saving provisions is to provide certainty for both industry and
government officials concerning how the details relating to the imposition of import levy
would be dealt with upon the commencement of the amendments made by this Schedule.
It would also allow the existing levy rates to continue until new regulations are made to
change the amounts.
16
OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS (MANUFACTURE
LEVY) AMENDMENT BILL 2022
NOTES ON CLAUSES
Clause 1 - Short title
95. Clause 1 would provide that the Bill may be cited as the Ozone Protection and Synthetic
Greenhouse Gas (Manufacture Levy) Amendment Act 2022 (Manufacture Levy
Amendment Bill).
Clause 2 - Commencement
96. Clause 2 would have the effect that Clauses 1 to 3 of the Manufacture Levy Amendment
Bill would commence on the day after it receives the Royal Assent. Schedule 1 (which
contains the proposed amendments) would commence at the same time as Schedule 1 to
the Ozone Protection and Synthetic Greenhouse Gas Management Reform (Closing the
Hole in the Ozone Layer) Act 2022 (OPSGG Amendment Act).
97. However, the Manufacture Levy Amendment Bill would not commence if the OPSGG
Amendment Act does not commence.
Clause 3 - Schedules
98. Clause 3 would provide that the legislation that is specified in a Schedule to the
Manufacture Levy Amendment Bill is amended or repealed as set out in the applicable
items in the Schedule concerned, and any other items in a Schedule has effect according
to its terms.
99. This clause would allow the Manufacture Levy Amendment Bill to amend the Ozone
Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 (the
Manufacture Levy Act) as set out in Schedule 1.
SCHEDULE 1 - AMENDMENTS
Item 1
100. Item 1 would amend the heading of section 2A of the Manufacture Levy Act to omit
"Definition" and substitute "Definitions". This would be consequential to the
amendments made by item 2, which inserts more definitions into this section.
Item 2
101. Item 2 would amend section 2A of the Manufacture Levy Act to insert a number of new
definitions for terms that are used in this Schedule.
102. One of the definitions would be amount which would be defined as including a nil
amount. This would remove any doubt that the regulations could set the levy amounts at
nil if considered appropriate.
17
Item 3
103. Item 3 would repeal existing section 3 of the Manufacture Levy Act and substitute it
with a new section 3 to clarify how expressions used in the Manufacture Levy Act
should be interpreted.
104. New section 3 would clarify how expressions used in the Manufacture Levy Act should
be interpreted.
105. New subsection 3(1) would provide that expressions used in the Manufacture Levy Act
have the same meanings in the Manufacture Levy Act as they have in the Ozone
Protection and Synthetic Greenhouse Gas Management Act 1989 (the OPSGG Act).
106. New subsection 3(2) would clarify that, without limiting subsection 3(1), section 9 of the
OPSGG Act applies in relation to the Manufacture Levy Act in the same way as that
section applies in relation to the OPSGG Act. Section 9 of the OPSGG Act sets out what
is included in, and what is excluded from, the meaning of bulk scheduled substances and
equipment for the purposes of the OPSGG Act. The purpose of new subsection 3(2) of
the Manufacture Levy Act would be to ensure that the meaning of those terms would be
consistent between the Manufacture Levy Act and the OPSGG Act.
107. New subsection 3(3) would clarify that, in determining for the purposes of the
Manufacture Levy Act whether a licence allows the licensee to carry out an activity, any
suspension of licence is to be disregarded. The note following this subsection would
refer readers to subsection 19D(4) of the OPSGG Act (as would be amended by the
OPSGG Bill) for the effect of a licence suspension.
108. The purpose of this subsection would be to ensure that the Manufacture Levy Act would
still apply in circumstances where a person manufactures scheduled substances under a
licence which is later suspended, or manufactures scheduled substances purportedly
under a licence which is suspended. It is intended that the fact that the person's licence
was suspended should not remove their liability to pay the levy in respect of any
manufacturing occurring before or during that suspension.
109. A person who manufactures scheduled substances under a licence that is suspended may
also, separately, be liable for an offence or civil penalty under the OPSGG Act.
Item 4
110. Section 3A of the Manufacture Levy Act deals with the imposition of a levy on the
manufacture of SGGs. Subject to limited exceptions, subsection 3A(1) imposes a levy on
a person who:
• holds a controlled substances licence that allows the person to manufacture
SGGs; and
• manufactures an SGG during a reporting period in which the licence is in
force.
18
The levy is imposed in respect of the manufacture.
111. Item 4 would add a note following subsection 3A(1) of the Manufacture Levy Act to
clarify that this subsection applies only in relation to the manufacture of SGGs that are
bulk scheduled substances under subsections 3(2) of the Manufacture Levy Act and
subsection 9(1) of the OPSGG Act.
Item 5
112. Item 5 would amend subsection 3A(2) to omit "circumstances that are prescribed for the
purposes of subsection 13(3) of the Ozone Protection and Synthetic Greenhouse Gas
Management Act 1989" and substitute with it with a reference to circumstances, or for a
purpose, prescribed for the purposes of subsection 13(2) of the OPSGG Act.
113. This is a consequential amendment intended to update the cross-reference to the relevant
section of the OPSGG Act, as it would be amended.
Item 6
114. Existing subsection 3A(5) sets out a formula to work out the amount of the levy imposed
under subsection 3A(1). That formula is the number of tonnes of SGG multiplied by the
prescribed rate. The prescribed rate is defined in existing subsection 3A(5) as $165 or, if
a lower amount is prescribed by the regulations, that amount. This means that, under
existing subsection 3A(5), the amount of the levy imposed on the manufacture of SGGs
is capped at $165 per tonne.
115. Item 6 would amend the definition of prescribed rate in subsection 3A(5) of the
Manufacture Levy Act to remove the $165 cap and allow the prescribed rate to be an
amount prescribed in the regulations.
116. The purpose of the levy (in combination with the other levies imposed by the
Manufacture Levy Act and the Ozone Protection and Synthetic Greenhouse Gas (Import
Levy) Act 1995 (Import Levy Act)) is to recover the costs associated with administering
the OPSGG Program, which is necessary to ensure Australia remains in compliance with
its international obligations.
117. The cap has been in place since the levy was instituted in 2003. As such, it does not
reflect the current cost of administering the OPSGG Program. Removing the cap allows
the levy to be adjusted periodically so that activities under the OPSGG Act and
regulations are able to be fully cost recovered.
118. It is appropriate for the prescribed rate to be an amount prescribed by regulations.
Consistent with Australian Government policy, the amount of any prescribed rate would
be set at a level that is designed to recover, in combination with the other levies imposed
by the Manufacture Levy Act and the Import Levy Act) no more than the estimated cost
of administering the OPSGG Program. A requirement to this effect would be inserted by
item 9.
19
119. The rate of the levy would be set at an amount that would not recover the costs of
assessing licence applications, as this amount would be covered by the licence
application fees set by the OPSGG Act and regulations.
Item 7
120. Subsection 3A(7) of the Manufacture Levy Act allows the Minister to, by written notice,
exempt a licensee from the levy imposed under subsection 3A(1) in respect of the
manufacture of an SGG in certain circumstances.
121. Under existing subparagraph 3A(7)(b)(iii), the Minister may exempt a licensee from levy
imposed under subsection 3A(1) in respect of the manufacture of an SGG if the Minister
is satisfied that the SGG is to be used in equipment prescribed for the purposes of
paragraph 8D(1)(c) of the OPSGG Act.
122. Existing paragraph 8D(1)(c) of the OPSGG Act allows the regulations to prescribe
equipment that was taken, for the purposes of that Act, not to be SGG equipment. The
OPSGG Bill would repeal section 8D of the OPSGG Act and move the definition of
SGG equipment to section 7 of that Act (dealing with definitions). The new definition of
SGG equipment in section 7 of the OPSGG Act would not allow the regulations to
continue to prescribe equipment that is taken not to be SGG equipment; however the
same effect would be achieved by the regulations being able to prescribe equipment that
is not subject to the prohibitions on import or manufacture.
123. Item 7 would amend existing subparagraph 3A(7)(b)(iii) of the Manufacture Levy Act to
replace the reference to equipment prescribed for the purposes of (repealed) paragraph
8D(1)(c) of the OPSGG Act, with a reference to equipment that is prescribed for the
purpose of paragraph 13(4)(a) or paragraph 13(6)(a).
124. This would mean subparagraph 3A(7)(b)(iii) continues to have the effect that where the
manufacture of equipment containing a scheduled substance or that uses a scheduled
substance in its operation does not require a licence, the Minister is also able to exempt a
person from payment of the levy for the manufacture of an SGG that is a bulk scheduled
substance intended for use in that same equipment.
Item 8
125. Under existing subparagraph 3A(7)(b)(iv), the Minister may exempt a licensee from
paying the levy imposed under subsection 3A(1) in respect of the manufacture of an
SGG if the Minister is satisfied that the SGG is to be used in the manufacture of
equipment specified in an instrument in force under paragraph 8D(1)(d) of the OPSGG
Act.
126. Existing paragraph 8D(1)(d) of the OPSGG Act allows the Minister to make a legislative
instrument specifying equipment that was taken, for the purposes of that Act, not to be
SGG equipment. The OPSGG Bill would repeal section 8D of the OPSGG Act and
move the definition of SGG equipment to section 7 of that Act (dealing with definitions).
20
The new definition of SGG equipment would be inserted into section 7 of the OPSGG
Act by the OPSGG Bill does not contain an equivalent of repealed paragraph 8D(1)(d).
This would have the effect that the Minister is no longer able to make a legislative
instrument specifying equipment that was taken, for the purposes of that Act, not to be
SGG equipment.
127. Item 8 would amend existing subsection 3A(7) of the Manufacture Levy Act to repeal
subparagraph 3A(9)(b)(iv) as this provision is now redundant. This is a consequential
amendment to the repeal of section 8D of the OPSGG Act by the OPSGG Bill.
Item 9
128. Existing subsections 3A(10) and (11) of the Manufacture Levy Act set limits on when
the Minister can make a recommendation to the Governor-General about regulations to
be made for the purposes of subsection 3A(3) or subparagraph 3A(7)(b)(v). Subsection
3A(3) allows the regulations to exempt the manufacture of SGGs for prescribed purposes
from the levy imposed under subsection 3A(1). Subparagraph 3A(7)(b)(v) has the effect
that the Minister may exempt a licensee from paying the levy imposed under subsection
3A(1) in respect of the manufacture of an SGG if the Minister is satisfied that the SGG is
to be used for a purpose prescribed by the regulations.
129. Item 9 would repeal existing subsections 3A(10) and (11) and substitute new subsections
3A(10), (11) and (12).
130. New subsection 3A(10) would allow the Minister to, by writing, delegate the Minister's
power in subsection 3A(7) (to exempt a licensee from paying the levy) to the Secretary,
Senior Executive Service employees and APS employees in an Executive Level 2
position in the Department. In exercising this power, delegates must comply with any
directions of the Minister (new subsection 3A(11)). This will ensure that the power in
subsection 3A(7) is exercised appropriately and consistently.
131. Effective delegation is a fundamental component of good governance and risk
management. It enables powers and functions (including decision-making) to be
exercised by persons other than the person to whom the power or function is vested in
circumstances where it is not practical or reasonable for the one person to exercise the
power or function themselves.
132. Limiting delegations to officials at Executive Level 2 ensures that only persons with
appropriate seniority and expertise would be exercising the power in subsection 3A(7) to
exempt a person from paying the levy. Delegating powers and functions to Executive
Level officers is consistent with the Australian Administrative Law Guide which
provides that it may be appropriate for such officers to make decisions, particularly
where there is a limited exercise of discretion (such as subsection 3A(7)). This would not
prevent significant decisions being made by persons of higher classifications (such as
SES employees or acting SES employees). and it is intended that such limitations would
be operationally imposed in the administration of the Manufacture Levy Act.
21
133. The note after new subsection 3A(10) refers the reader to the relevant provisions of the
Acts Interpretation Act 1901 that deal with delegations
134. New subsection 3A(12) would update and modernise the drafting of the requirements in
existing subsection 3A(10) and (11) so that they are easier to understand. It would also
add requirements that must be satisfied before the Minister can make a recommendation
to the Governor-General about regulations to be made for the purpose of subsection
3A(5) (setting the prescribed rate in respect of the levy to be imposed on the
manufacture of SGGs).
135. Under table item 1 of the table in new subsection 3A(12), before the Governor-General
makes regulations for the purpose of subsection 3A(3) (prescribing a purpose for which
the manufacture of SGGs is exempt from the levy), the Minister would have to be
satisfied that:
• it would be impracticable to impose levy on the manufacture of an SGG that is
to be used for a purpose to be prescribed by those regulations; or
• a purpose to be prescribed by those regulations is a medical, veterinary, health
or safety purpose.
This table item would reflect the requirements in existing subsection 3A(10).
136. Under table item 2 of the table in new subsection 3A(12), before the Governor-General
makes regulations for the purpose of subsection 3A(5) (setting the prescribed rate of the
levy imposed on the manufacture of SGGs), the Minister would have to be satisfied that
the effect of those regulations will be to recover no more than the Commonwealth's
likely costs of the kind in paragraphs 65D(a), (b), (c) or (ca) of the OPSGG Act, being
costs that are unlikely to be offset by fees charged under the OPSGG Act or regulations
made under it. These costs relate to the administration of the OPSGG Program. This
requirement would ensure that the levy rate is appropriate and does not exceed the
Commonwealth's expected costs, consistent with the Australian Government Charging
Framework.
137. The rate of the levy would not be set at an amount that would recover the costs of
assessing licence applications, as this amount would be covered by the licence
application fees set by the OPSGG Act and regulations.
138. Under table item 3 of the table in new subsection 3A(12), before the Governor-General
makes regulations for the purpose of subparagraph 3A(7)(b)(v) (prescribing a purpose
for which Minister may decide to exempt the licensee from paying the levy for the
manufacture of SGGs), the Minister would have to be satisfied that:
• it would be impracticable to require payment of the levy on the manufacture of
an SGG that is to be used for a purpose to be prescribed by those regulations;
or
22
• a purpose to be prescribed by those regulations is a medical, veterinary, health
or safety purpose.
This table item would reflect the requirement in existing subsection 3A(11).
Item 10
139. Section 4 of the Manufacture Levy Act deals with the imposition of a levy on the
manufacture of substances other than SGGs. Subject to limited exceptions, subsection
4(1) imposes a levy on a person who:
• holds a controlled substances licence allows the licensee to manufacture a
substance or substances (other than an SGG); and
• manufactures any such substance during a reporting period during which the
licence is in force.
The levy is imposed in respect of the manufacture.
140. Subsection 4(1) also provides for the rate of the levy imposed in respect of the
manufacture of substances other than SGGs to be prescribed in the regulations.
141. Item 10 would amend existing subsection 4(1) of the Manufacture Levy Act to omit "at
the rate prescribed by the regulations." The effect of this amendment would be to allow
the operation of new subsection 4(4), as amended by item 12, which would enable the
regulations to prescribe either the rate of levy, or a method for working out the rate of
the levy. This would provide flexibility, as there may be circumstances where it is
appropriate to prescribe a method rather than a set amount. It would also allow for
consistency with the levies imposed under section 3A in respect of manufacture of
SGGs, which are worked out by a method set out in the legislation.
Item 11
142. Item 11 would add a note at the end of subsection 4(1) of the Manufacture Levy Act to
clarify that subsection 4(1) would apply only in relation to the manufacture of scheduled
substances (other than SGGs) that are bulk scheduled substances. The note would also
refer readers to subsection 3(2) of the Manufacture Levy Act and subsection 9(1) of the
OPSGG Act for an explanation of the term bulk scheduled substance.
Item 12
143. Existing subsection 4(4) of the Manufacture Levy Act imposes a cap on the levy that can
be imposed in respect of the manufacture of HCFCs (being $3000 per ODP tonne) or
methyl bromide (being $135 per tonne).
144. Item 12 would amend section 4 of the Manufacture Levy Act to repeal existing
subsection 4(4) (and the note following it) and substitute new subsections 4(4), (5) and
(6).
23
145. New subsection 4(4) would provide that the amount of levy imposed by subsection 4(1)
in a reporting period is the amount prescribed, or worked out in accordance with a
method prescribed, by the regulations. This would have the effect of removing the cap
on the levies that could be prescribed in respect of the manufacture of HCFCs and
methyl bromide.
146. New subsection 4(5) would require that, before the Governor General makes regulations
for the purposes of subsection 4(1), the Minister would have to be satisfied that the effect
of the Import Levy Act and the Manufacture Levy Act would be to recover no more than
the Commonwealth's likely costs of the kind mentioned in paragraph 65D(a), (b), (c) or
(ca) of the OPSGG Act. These costs relate to the administration of the OPSGG Program.
147. New subsection 4(6) would provide that for the purposes of new subsection 4(5), any
costs that are likely to be offset by fees charged under the OPSGG Act or regulations
made under it should be disregarded.
148. The purpose of the levy imposed by section 4 (in combination with the other levies
imposed by the Import Levy Act and the Manufacture Levy Act) is to recover the costs
associated with administering the OPSGG Program, which is necessary to ensure
Australia remains in compliance with its international obligations.
149. The cap has been in place since the levy was instituted in 2003. As such, it does not
reflect the current cost of administering the OPSGG Program. Removing the cap allows
the levy to be adjusted periodically so that activities under the OPSGG Act and
regulations are able to be fully cost recovered.
150. It is appropriate for the rate of the levy to be prescribed by regulations. Consistent with
Australian Government policy and new subsection 4(5), the amount of any prescribed
rate would be set at a level that is designed to recover (in combination with the other
levies imposed by the Import Levy Act and the Manufacture Levy Act) no more than the
estimated cost of administering the OPSGG Program.
151. The rate of the levy would not be set at an amount that would recover the costs of
assessing licence applications, as this amount would be covered by the licence
application fees set by the OPSGG Act and regulations.
Item 13
152. Item 13 would repeal section 5 of the Manufacture Levy Act and substitute with a new
section 5 to deal with regulations.
153. New section 5 would enable the Governor-General to make regulations prescribing
matters required or permitted by the Manufacture Levy Act to be prescribed by the
regulations, or necessary or convenient to be prescribed for carrying out or giving effect
to the Manufacture Levy Act.
24
154. The purpose of this amendment would be to update this provision to ensure it reflects
modern drafting practices. It would not expand the scope of the existing regulation-
making power.
Item 14
155. Item 14 would set out the application and saving provisions relating to the amendments
that would be made to the Manufacture Levy Act.
156. Sub-item 14(1) would provide that the amendments made by this Schedule would apply
in relation to reporting periods that start on or after the commencement of this item.
157. Sub-item 14(2) would provide that the Manufacture Levy Act, as in force immediately
before the commencement of this item, continues to apply in relation to reporting periods
starting before that commencement.
158. Sub-item 14(3) would provide that regulations made under section 5 of the Manufacture
Levy Act, that were in force immediately before the commencement of this item,
continue in force (subject to subitem 14(4)), and may be dealt with, as if they had been
made under section 5 of the Manufacture Levy Act, as would be amended by this
Schedule.
159. Sub-item 14(4) would provide that the regulations made for the purposes of a specified
provision of the Manufacture Levy Act that were in force immediately before the
commencement of this item, continue to be in force (and may be dealt with) as if they
had been made for the purposes of the corresponding provision of the Manufacture Levy
Act, as would be amended by this Schedule. The table following this subitem would set
out the relevant old provisions of the Manufacture Levy Act, and their corresponding
new provisions as would be amended by this Schedule.
160. The purpose of these saving provisions is to provide certainty for both industry and
government officials concerning how the details relating to the imposition of
manufacture levy would be dealt with upon the commencement of the amendments made
by this Schedule.
25
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Ozone Protection and Synthetic Greenhouse Gas Management (Import Levy)
Amendment Bill 2022
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 Ozone Protection and Synthetic Greenhouse Gas Management (Import Levy)
Amendment Bill 2022 (the Import Levy Amendment Bill) complements the Ozone Protection
and Synthetic Greenhouse Gas Management Reform (Closing the Hole in the Ozone Layer)
Bill 2022 (OPSGG Bill) by making minor changes to the existing cost recovery model under
the Ozone Protection and Synthetic Greenhouse Gas Management (Import Levy) Act 1995
(Import Levy Act) by removing the cap on the rate that levies can be set out, and removing
the levy on the import of ODS equipment.
This would ensure the Commonwealth's likely costs in connection with the administration of
the Ozone Protection and Synthetic Greenhouse Gas Management Program (OPSGG
Program) are able to be appropriately recovered, consistent with the Australian Government
Charging Framework.
The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the OPSGG
Act) implements Australia's obligations under the Vienna Convention for the Protection of
the Ozone Layer and its associated Montreal Protocol on Substances that Deplete the Ozone
Layer (the Montreal Protocol), as well as the United Nations Framework Convention on
Climate Change and its Kyoto Protocol, including by establishing a licensing scheme for the
import, export, manufacture and end use of scheduled substances.
The OPSGG Amendment Bill would amend the OPSGG Act to update and streamline the Act
to ensure that the OPSGG Program can effectively implement Australia's international
obligations. The Import Levy Act, with the Ozone Protection and Synthetic Greenhouse Gas
Management (Manufacture Levy) Act 1995, allow the administration of the OPSGG Program
to be cost recovered as appropriate.
Human rights implications
The Import Levy Amendment Bill would amend the Import Levy Act to make minor changes
to the cost recovery settings for the OPSGG Program, consistent with the Australian
Government Charging Framework.
26
Therefore, the Import Levy Amendment Bill does not engage any of the applicable rights or
freedoms.
Conclusion
The Import Levy Amendment Bill is compatible with human rights as it does not raise any
human rights issues.
Circulated by authority of the Minister for the Environment and Water,
the Hon. Tanya Plibersek MP
27
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Ozone Protection and Synthetic Greenhouse Gas Management (Manufacture Levy)
Amendment Bill 2022
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 Ozone Protection and Synthetic Greenhouse Gas Management (Manufacture Levy)
Amendment Bill 2022 (the Manufacture Levy Amendment Bill) complements the Ozone
Protection and Synthetic Greenhouse Gas Management Reform (Closing the Hole in the
Ozone Layer) Bill 2022 (OPSGG Bill) by making minor changes to the existing cost recovery
model under the Ozone Protection and Synthetic Greenhouse Gas Management (Manufacture
Levy) Act 1995 (Manufacture Levy Act) by removing the cap on the rate that levies can be set
out. This would ensure the Commonwealth's likely costs in connection with the
administration of the Ozone Protection and Synthetic Greenhouse Gas Management Program
(OPSGG Program) are able to be appropriately recovered, consistent with the Australian
Government Charging Framework.
The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the OPSGG
Act) implements Australia's obligations under the Vienna Convention for the Protection of
the Ozone Layer and its associated Montreal Protocol on Substances that Deplete the Ozone
Layer (the Montreal Protocol), as well as the United Nations Framework Convention on
Climate Change and its Kyoto Protocol, including by establishing a licensing scheme for the
import, export, manufacture and end use of scheduled substances. The OPSGG Amendment
Bill would amend the OPSGG Act to update and streamline the Act to ensure that the
OPSGG Program can effectively implement Australia's international obligations. The
Manufacture Levy Act, with the Ozone Protection and Synthetic Greenhouse Gas
Management (Import Levy) Act 1995, allow the administration of the OPSGG Program to be
cost recovered as appropriate.
Human rights implications
The Manufacture Levy Amendment Bill would amend the Manufacture Levy Act to make
minor changes to the cost recovery settings for the OPSGG Program, consistent with the
Australian Government Charging Framework.
Therefore, the Manufacture Levy Amendment Bill does not engage any of the applicable
rights or freedoms.
28
Conclusion
The Manufacture Levy Amendment Bill is compatible with human rights as it does not raise
any human rights issues.
Circulated by authority of the Minister for the Environment and Water,
the Hon. Tanya Plibersek MP
29