Commonwealth of Australia Explanatory Memoranda

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QUARANTINE CHARGES (IMPOSITION-EXCISE) AMENDMENT BILL 2014

                                  2013-2014




      THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                      HOUSE OF REPRESENTATIVES




QUARANTINE CHARGES (IMPOSITION - GENERAL) AMENDMENT BILL 2014

QUARANTINE CHARGES (IMPOSITION - CUSTOMS) AMENDMENT BILL 2014

 QUARANTINE CHARGES (IMPOSITION - EXCISE) AMENDMENT BILL 2014




                    EXPLANATORY MEMORANDUM




            (Circulated by authority of the Minister for Agriculture,

                         the Hon. Barnaby Joyce MP)


2


QUARANTINE CHARGES (IMPOSITION - GENERAL) AMENDMENT BILL 2014 QUARANTINE CHARGES (IMPOSITION - CUSTOMS) AMENDMENT BILL 2014 QUARANTINE CHARGES (IMPOSITION - EXCISE) AMENDMENT BILL 2014 General Outline The Biosecurity Bill will replace the Quarantine Act 1908 (Quarantine Act) as the primary source for managing Australia's biosecurity system. Australia's biosecurity system refers to the management of the risk of pests and diseases entering Australian territory and causing harm to animal, plant and human health, the environment and the economy. The amendments in these three Bills will allow the Commonwealth to ensure there is an appropriate legal structure to support the recovery of costs associated with indirect services under the Biosecurity Bill. The three Bills (Quarantine Charges Amendment Bills) amend the following Imposition Acts: Quarantine Charges (Imposition - General) Act 2014 Quarantine Charges (Imposition - Customs) Act 2014 Quarantine Charges (Imposition - Excise) Act 2014. The amendments will allow the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Bill. The legislation will sit alongside the fee-for-service cost-recovery mechanism within the Biosecurity Bill and support Australia's capacity to manage biosecurity risks into the future. Authority to collect charges imposed by the Imposition Acts is provided by the Biosecurity Bill. The Quarantine Charges (Collection) Act 2014 is being repealed by the Biosecurity (Consequential Amendments and Transitional Provisions) Bill 2014. Quarantine Charges (Imposition-General) Amendment Bill 2014 The Quarantine Charges (Imposition-General) Amendment Bill 2014 amends the Quarantine Charges (Imposition-General) Act 2014 to enable cost-recovery of activities connected with the administration of the Biosecurity Bill that provide benefits to users of the biosecurity system - particularly the recovery of costs for indirect biosecurity services, such as scientific analysis, intelligence and surveillance. The Bill is enabling and mechanistic in character. It does not itself set the amount of charges and will not impose any financial impacts on businesses. The Bill authorises the imposition of charges in relation to matters connected with the administration of the Biosecurity Bill. These matters will be prescribed in the delegated legislation and will reflect the indirect biosecurity services provided by the department. The amount of the cost-recovery charges and who is liable to pay will also be set in delegated legislation. Setting the charges through delegated legislation will allow the Minister for Agriculture to make appropriate and timely adjustments to the charges, avoiding future over or under recoveries. 3


Quarantine Charges (Imposition-Customs) Amendment Bill 2014 The Quarantine Charges (Imposition-Customs) Amendment Bill 2014 amends the Quarantine Charges (Imposition-Customs) Act 2014 to enable cost-recovery of activities connected with the administration of the Biosecurity Bill that provide benefits to users of the biosecurity system - particularly the recovery of costs for indirect biosecurity services, such as scientific analysis, intelligence and surveillance where a charge is considered a duty of customs as defined by section 55 of the Constitution. The Bill is enabling and mechanistic in character. Its provisions mirror the Quarantine Charges (Imposition-General) Amendment Bill 2014 in operative function and effect. Quarantine Charges (Imposition-Excise) Amendment Bill 2014 The Quarantine Charges (Imposition-Excise) Amendment Bill 2014 amends the Quarantine Charges (Imposition-Excise) Act 2014 to enable cost-recovery of activities connected with the administration of the Biosecurity Bill that provide benefits to users of the biosecurity system - particularly the recovery of costs for indirect biosecurity services, such as scientific analysis, intelligence and surveillance where a charge is considered a duty of excise as defined by section 55 of the Constitution. The Bill is enabling and mechanistic in character. Its provisions mirror the Quarantine Charges (Imposition-General) Amendment Bill 2014 in operative function and effect. Financial Impact Statement The Bills have no financial impact on the Commonwealth or industry. The Bills do not set the amount of the charges and will not impose any financial impacts on businesses. 4


Human Rights Compatibility Statement Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Quarantine Charges (Imposition-General) Amendment Bill 2014 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 Quarantine Charges (Imposition-General) Amendment Bill 2014 amends the Quarantine Charges (Imposition-General) Act 2014 to enable the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. The amendments in the Bill are enabling and mechanistic in nature. It does not itself set the amount of the charges and will not impose any financial impacts on businesses. The amount of the cost-recovery charges and who is liable to pay them will be set in regulation under the Bill. The legislation will complement the fee-for-service cost-recovery mechanisms under the Biosecurity Act and support Australia's capacity to manage biosecurity risks into the future. 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 engage any human rights issues. Minister for Agriculture, the Hon. Barnaby Joyce MP 5


Human Rights Compatibility Statement Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 Quarantine Charges (Imposition-Customs) Amendment Bill 2014 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 Quarantine Charges (Imposition-Customs) Amendment Bill 2014 amends the Quarantine Charges (Imposition-Customs) Act 2014 to enable the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. The amendments in the Bill are enabling and mechanistic in nature. It does not itself set the amount of the charges (duties of customs) and will not impose any financial impacts on businesses. The amount of the cost-recovery charges and who is liable to pay them will be set in regulation under the Bill. The legislation will complement the fee-for-service cost-recovery mechanisms under the Biosecurity Act and support Australia's capacity to manage biosecurity risks into the future. 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 engage any human rights issues. Minister for Agriculture, the Hon. Barnaby Joyce MP 6


Human Rights Compatibility Statement Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011. Quarantine Charges (Imposition-Excise) Amendment Bill 2014 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 Quarantine Charges (Imposition-Excise) Amendment Bill 2014 amends the Quarantine Charges (Imposition-Excise) Act 2014 to enable the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. The amendments in the Bill are enabling and mechanistic in nature. It does not itself set the amount of the charges (duties of excise) and will not impose any financial impacts on businesses. The amount of the cost-recovery charges and who is liable to pay them will be set in regulation under the Bill. The legislation will complement the fee-for-service cost-recovery mechanisms under the Biosecurity Act and support Australia's capacity to manage biosecurity risks into the future. 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 engage any human rights issues. Minister for Agriculture the Hon. Barnaby Joyce MP 7


Notes on Clauses Quarantine Charges (Imposition-General) Amendment Bill 2014 Clause 1 Short title This clause provides that the Bill, when enacted, may be cited as the Quarantine Charges (Imposition-General) Amendment Act 2014. Clause 2 Commencement This clause provides for the commencement of the Bill. Each provision of the Bill specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 in the table. Item 1 of the table provides that clauses 1 to 3 of the Bill (and anything in the Bill not elsewhere covered by the table) will commence on the day the Bill receives Royal Assent. Item 2 of the table provides that Schedule 1 of the Bill--relating to repealing and amending Quarantine Charges (Imposition-General) Act 2014 (the Act)--will commence at the same time as section 3 of the Biosecurity Act. This timing ensures that the amendments to the Act will only take effect once all of the provisions in the Biosecurity Act commence. Clause 3 Schedules The clause provides that Quarantine Charges (Imposition-General) Act 2014 is amended or repealed as set out in the Schedule. The items in the Schedule will provide for the details and effect of the amendments. Schedule 1--Amendments Item 1 This item substitutes the words `Quarantine Act 1908' (Quarantine Act) in the title of the Act with `Biosecurity Act 2014'.The purpose of this amendment is to update the title of the Quarantine Charges (Imposition-General) Act 2014 to reference the Biosecurity Act, consistent with the repeal of the Quarantine Act by other related legislation. Item 2 This item substitutes the words `Quarantine Charges (Imposition-General) Act 2014' in section 1 of the Act with `Biosecurity Charges Imposition (General) Act 2014'. The purpose of this amendment is to update the name of the Act to reflect that charges imposed by the Act will be related to the administration of the Biosecurity Act. Item 3 This item repeals section 5 of the Act and replaces it with a new section 5 which simplifies the extraterritorial application of the Act and provides a definition of `Coastal sea' which is not defined in the Biosecurity Act. This section extends the operation of the Act beyond Australia's territorial jurisdiction, ensuring that charges in relation to prescribed matters connected with the administration of the Biosecurity Act can be imposed on persons and organisations located overseas. This clause is necessary to impose charges on persons wishing to import goods into Australia who are located overseas. This clause also defines `Australian territory'. A reference to `Australian territory' is a reference to Australia, and any external Territory to which that provision extends (such as Christmas Island 8


and Cocos (Keeling) Islands) and the airspace over these areas. It also refers to the coastal sea. `Coastal sea' is defined in subsection 15B(4) of the Acts Interpretation Act 1901. Item 4 This item substitutes section 7 of the Act with a new section 7 which permits the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. These matters will be prescribed in the delegated legislation and will reflect the indirect biosecurity services provided by the department, such as, but not limited to scientific analysis, intelligence and surveillance. Charges imposed under the Act are imposed as taxes only for the purposes of cost recovery and will not raise additional revenue above the costs of providing the indirect biosecurity services by the department. Two or more charges may be prescribed in relation to the same matter or a single charge may cover two or more matters. This will provide the department with sufficient flexibility to ensure that any charges best reflect the indirect biosecurity services provided and allow the cost-recovery for such services to be appropriate in all circumstances. Charges imposed under this Act are only valid insofar as the charge is neither a duty of customs or excise within the meaning of section 55 of the Constitution. This ensures that persons liable to pay a charge under the Act will not be liable to pay an additional charge for the provision of the same service or product under either the Biosecurity Charges Imposition (Customs) Act 2014 or the Biosecurity Charges Imposition (Excise) Act 2014. The purpose of this amendment is to reflect that biosecurity will be managed under the Biosecurity Act, allowing the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. Item 5 This item repeals section 9 of the Act which allowed the regulations to prescribe who is liable to pay a charge and that one or more persons may be liable to pay a particular charge or charges prescribed under the Act. The management of collection of charges, including who is liable to pay the charges, is provided for under section 628 of the Biosecurity Act. This will ensure consistency in collection provisions for charges provided under this Act and fees-for-service under the Biosecurity Act. Regulations enacted under section 628 will detail who is liable to pay charges under the Act. Item 6 This item repeals Part 3 of the Act which validates fees charged under the Quarantine Act. Part 3 operated to validate fees purported to be charged under the Quarantine Act by a section 86E determination immediately before the commencement of the Act and does not have operation in relation to a purported fee that has not already been paid to the Commonwealth. This Part does not have any ongoing operation. 9


Notes on Clauses Quarantine Charges (Imposition-Customs) Amendment Bill 2014 Clause 1 Short title This clause provides that the Bill, when enacted, may be cited as the Quarantine Charges (Imposition-Customs) Amendment Act 2014. Clause 2 Commencement This clause provides for the commencement of the Bill. Each provision of the Bill specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 in the table. Item 1 of the table provides that clauses 1 to 3 of the Bill (and anything in the Bill not elsewhere covered by the table) will commence on the day the Bill receives Royal Assent. Item 2 of the table provides that Schedule 1 of the Bill--relating to repealing and amending Quarantine Charges (Imposition-Customs) Act 2014 (the Act)--will commence at the same time as section 3 of the Biosecurity Act. This timing ensures that the amendments to the Act will only take effect once all of the provisions in the Biosecurity Act commence. Clause 3 Schedules The clause provides that Quarantine Charges (Imposition-Customs) Act 2014 is amended or repealed as set out in the Schedule. The items in the Schedule will provide for the details and effect of the amendments. Schedule 1--Amendments Item 1 This item substitutes the words `Quarantine Act 1908' (Quarantine Act) in the title of the Act with `Biosecurity Act 2014'. The purpose of this amendment is to update the title of the Quarantine Charges (Imposition-Customs) Act 2014 to reference the Biosecurity Act, consistent with the repeal of the Quarantine Act by other related legislation. Item 2 This item substitutes the words `Quarantine Charges (Imposition-Customs) Act 2014' in section 1 of the Act with `Biosecurity Charges Imposition (Customs) Act 2014'. The purpose of this amendment is to update the name of the Act to reflect that charges imposed by the Act will now be related to the administration of the Biosecurity Act. Item 3 This item repeals section 5 of the Act and replaces it with a new section 5 which simplifies the extraterritorial application of the Act and provides a definition of `Coastal sea' which is not defined in the Biosecurity Act. This section extends the operation of the Act beyond Australia's territorial jurisdiction, ensuring that charges in relation to prescribed matters connected with the administration of the Biosecurity Act can be imposed on persons and organisations located overseas. This clause is necessary to impose charges on persons wishing to import goods into Australia who are located overseas. 10


This clause also defines `Australian territory'. A reference to `Australian territory' is a reference to Australia, and any external Territory to which that provision extends (such as Christmas Island and Cocos (Keeling) Islands) and the airspace over these areas. It also refers to the coastal sea. `Coastal sea' is defined in subsection 15B(4) of the Acts Interpretation Act 1901. Item 4 This item substitutes section 7 of the Act with a new section 7 which permits the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. These matters will be prescribed in the delegated legislation and will reflect the indirect biosecurity services provided by the department, such as, but not limited to scientific analysis, intelligence and surveillance. Charges imposed under the Act are imposed as taxes only for the purposes of cost recovery and will not raise additional revenue above the costs of providing the indirect biosecurity services by the department. Two or more charges may be prescribed in relation to the same matter or a single charge may cover two or more matters. This will provide the department with sufficient flexibility to ensure that any charges best reflect the indirect biosecurity services provided and allow the cost-recovery for such services to be appropriate in all circumstances. Charges imposed under this Act are only valid insofar as the charge is a duty of customs within the meaning of section 55 of the Constitution. This ensures that persons liable to pay a charge under the Act will not be liable to pay an additional charge for the provision of the same service or product under either the Biosecurity Charges Imposition (General) Act 2014 or the Biosecurity Charges Imposition (Excise) Act 2014. The purpose of this amendment is to reflect that biosecurity will be managed under the Biosecurity Act, allowing the Commonwealth impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. Item 5 This item repeals section 9 of the Act which allowed the regulations to prescribe who is liable to pay a charge and that one or more persons may be liable to pay a particular charge or charges prescribed under the Act. The management of collection of charges, including who is liable to pay the charges, is provided for under section 628 of the Biosecurity Act. This will ensure consistency in collection provisions for charges provided under this Act and fees-for-service under the Biosecurity Act. Regulations enacted under section 628 will detail who is liable to pay charges under this Act. Item 6 This item repeals Part 3 of the Act which validates fees charged under the Quarantine Act. Part 3 operated to validate fees purported to be charged under the Quarantine Act by a section 86E determination immediately before the commencement of the Act and does not have operation in relation to a purported fee that has not already been paid to the Commonwealth. This Part does not have any ongoing operation. 11


Notes on Clauses Quarantine Charges (Imposition-Excise) Amendment Bill 2014 Clause 1 Short title This clause provides that the Bill, when enacted, may be cited as the Quarantine Charges (Imposition-Excise) Amendment Act 2014. Clause 2 Commencement This clause provides for the commencement of the Bill. Each provision of the Bill specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 in the table. Item 1 of the table provides that clauses 1 to 3 of the Bill (and anything in the Bill not elsewhere covered by the table) will commence on the day the Bill receives Royal Assent. Item 2 of the table provides that Schedule 1 of the Bill--relating to repealing and amending Quarantine Charges (Imposition-Excise) Act 2014 (the Act)--will commence at the same time as section 3 of the Biosecurity Act. This timing ensures that the amendments to the Act will only take effect once all of the provisions in the Biosecurity Act commence. Clause 3 Schedules The clause provides that Quarantine Charges (Imposition-Excise) Act 2014 is amended or repealed as set out in the Schedule. The items in the Schedule will provide for the details and effect of the amendments. Item 1 This item substitutes the words `Quarantine Act 1908' (Quarantine Act) in the title of the Act with `Biosecurity Act 2014'. The purpose of this amendment is to update the title of the Quarantine Charges (Imposition-Excise) Act 2014 to reference the Biosecurity Act, consistent with the repeal of the Quarantine Act by other related legislation. Item 2 This item substitutes the words `Quarantine Charges (Imposition-Excise) Act 2014' in section 1 of the Act with `Biosecurity Charges Imposition (Excise) Act 2014'. The purpose of this amendment is to update the name of the Act to reflect that charges imposed by the Act will now be related to the administration of the Biosecurity Act. Item 3 This item substitutes section 6 of the Act with a new section 6 which permits the Commonwealth to impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. These matters will be prescribed in the delegated legislation and will reflect the indirect biosecurity services provided by the department, such as, but not limited to scientific analysis, intelligence and surveillance. Charges imposed under the Act are imposed as taxes only for the purposes of cost recovery and will not raise additional revenue above the costs of providing the indirect biosecurity services by the department. Two or more charges may be prescribed in relation to the same matter or a single charge may cover two or more matters. This will provide the department with sufficient flexibility to ensure that any charges best reflect the indirect biosecurity services provided and allow the cost-recovery for such services to be appropriate in all circumstances. 12


Charges imposed under this Act are only valid insofar as the charge is a duty of excise within the meaning of section 55 of the Constitution. This ensures that persons liable to pay a charge under the Act will not be liable to pay an additional charge for the provision of the same service or product under either the Biosecurity Charges (Imposition-General) Act 2014 or the Biosecurity Charges (Imposition-Customs) Act 2014. The purpose of this amendment is to reflect that biosecurity will be managed under the Biosecurity Act, allowing the Commonwealth impose charges in relation to prescribed matters connected with the administration of the Biosecurity Act. Item 4 This item repeals section 8 of the Act which allowed the regulations to prescribe who is liable to pay a charge and that one or more persons may be liable to pay a particular charge or charges prescribed under the Act. The management of collection of charges, including who is liable to pay the charges, is provided for under section 628 of the Biosecurity Act. This will ensure consistency in collection provisions for charges provided under this Act and fees-for-service under the Biosecurity Act. Regulations enacted under section 628 will detail who is liable to pay charges under this Act. Item 5 This item repeals Part 3 of the Act which validates fees charged under the Quarantine Act. Part 3 operated to validate fees purported to be charged under the Quarantine Act by a section 86E determination immediately before the commencement of the Act and does not have operation in relation to a purported fee that has not already been paid to the Commonwealth This Part does not have any ongoing operation. 13


 


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