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Treasury Legislation Amendment Bill 2002
TREASURY LEGISLATION AMENDMENT
BILL 2002
EXPLANATORY NOTES
GENERAL OUTLINE
Objectives of the Legislation
The objective of the Bill is to make a number of technical changes to
Acts administered by the Treasury Department. Apart from the
amendments to the Pay-roll Tax Act 1971 and the Electricity Act 1994,
these amendments do not involve any significant policy issues.
Reasons for the Objectives and how they will be achieved
The Treasury Department approved the implementation of a program of
omnibus legislation in order to make a number of technical amendments to
Acts administered by the Department on a regular basis. The amendments
which will be included in the omnibus Bills will generally be of a technical
nature and are not suitable for inclusion in a Statute Law (Miscellaneous
Provisions) Bill.
Administrative costs to Government of Implementation
There will be no administrative cost to Government as a result of the
amendments in the Bill.
Fundamental legislative principles
The Bill is generally consistent with fundamental legislative principles
except for one amendment to the Electricity Act 1994, which
retrospectively validates existing commercial transactions for the on-
selling of electricity by bodies corporate. In this case, it is fully supported
by industry stakeholders in the interests of commercial certainty and it will
not adversely impact on existing contractual arrangements between bodies
corporate, retailers and consumers.
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Treasury Legislation Amendment Bill 2002
Consultation
There has been consultation within the Queensland Government in
relation to the various amendments in the Bill. Apart from the Business
Regulation Reform Unit's ("BRRU") concerns in relation to the
amendments to the Gas Act 1965, all parties consulted are generally in
agreement with the amendments in the Bill.
BRRU is of the view that a cost/benefit study should be completed and
recommendations formulated for the Government's consideration prior to
any proposed amendments to the Gas Act 1965. It is also concerned that
the mechanism being proposed for effecting changes to current
contestability arrangements, that is via the making of a regulation, could
undermine the contestability arrangements established by the principal
legislation. This could influence and add an element of uncertainty to the
market.
The Office of Energy within the Treasury Department does not agree
with BRRU's concerns. The Government's policy is not changing. The
implementation of full retail contestability will still be subjected to a cost/
benefit analysis. Ultimately the contestability arrangements that are
enacted by regulation will be in accordance with the Gas Act 1965 and will
accord with Government policy so there can be no undermining of that
policy.
NOTES ON PROVISIONS
PART 1--PRELIMINARY
Clause 1 sets out the short title of the Bill.
Clause 2 specifies the dates for commencement of the relevant Parts in
the Bill. Parts 2 to 4 and 6 to 8 will commence on assent. Part 5 will
commence on 1 November 2002.
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Treasury Legislation Amendment Bill 2002
PART 2--AMENDMENT OF DUTIES ACT 2001
Clause 3 introduces the amendment to the Duties Act 2001.
Clause 4 amends section 9 of the Duties Act 2001 to ensure that the
vesting of dutiable property under any Act or court order constitutes a
dutiable transaction.
PART 3--AMENDMENT OF ELECTRICITY ACT 1994
Clause 5 introduces the amendments to the Electricity Act 1994.
Clause 6 amends section 23 of the Electricity Act 1994 to provide that
the definition of a customer includes a relevant body corporate.
Clause 7 amends section 64N(1) of the Electricity Act 1994 to remove
the limitation on the number of energy arbitrators that can be appointed.
Clause 8 inserts a new section 254AB to clarify that a reference in the
Electricity Act 1994 to a customer's premises or to premises owned or
occupied by a customer is a reference to the premises for which the
relevant body corporate is established. In addition, for further clarification
it is stated that a reference in this Act to a customer or person who owns or
occupies premises or has the right to use premises is a reference to the
relevant body corporate established for the premises.
Clause 9 provides for the phrase "And Validation Provisions" to be
included in the heading for Chapter 14, and that a new part entitled "Part
4--Validation Provision" and comprising a new section 304 be inserted.
New section 304 validates the prior actions of a body corporate which,
before the commencement of this legislation, entered into an agreement to
supply and sell electricity for use in the premises for which the body
corporate was established. The agreement and all acts done by the body
corporate are taken to be validly made or done as if the agreement were
entered into after the commencement of this legislation. This amendment
ensures retrospectivity to previous arrangements entered into by bodies
corporate with respect to the on-selling of electricity to unit occupiers.
Clause 10(1) amends Schedule 5 to include a new definition of "relevant
body corporate".
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Treasury Legislation Amendment Bill 2002
Clause 10(2) amends Schedule 5 so that the definition of a customer
includes a relevant body corporate, consistent with the amendment to
section 23.
PART 4--AMENDMENT OF GAS ACT 1965
Clause 11 introduces the amendments to the Gas Act 1965.
Clause 12 deletes redundant definitions and inserts other definitions
relevant to new provisions to the Gas Act 1965 included in this Bill.
Clause 13 deletes, then inserts, a new subsection 33A(4), defining a
contestable consumer (as at 1 January 2003 ) as one contestable on 31
December 2002 under subsections (1) to (3), or one who is contestable
under the certification mechanisms provided by provisions to be inserted
by this Bill.
Clause 14(1) inserts "new non-contestable consumer" in the section
heading.
Clause 14(2) deletes reference to "31 December 2002" in subsection
33B (1), so that it now defines a non-contestable consumer as a franchise
consumer who is not a contestable consumer.
Clause 14(3) deletes subsection 33B(3), which defines gas in this section
as natural gas. The subsection is unnecessary, since s33A defines
contestable consumers as natural gas consumers, and all other franchise
consumers (e.g of LPG) are subject to their franchise holder's exclusive
right to supply.
Clause 15 inserts new Part 5 Divisions 2 and 3.
New s 33BA provides that if a consumer is contestable under s 33A and
the registered owner of the lot/s on which the premises is situated, then the
consumer is also a contestable consumer for replacement premises and any
other premises on the lot/s. However, the consumer is not a contestable
consumer for premises on the lot/s existing before the consumer became
contestable, for which the consumer did not become contestable when the
consumer became contestable for the original premises.
New 33BB provides that the subsequent registered owner of a
contestable consumer's premises will be contestable for the premises. New
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Treasury Legislation Amendment Bill 2002
owners will not be contestable for premises which existed prior to their
ownership and for which the original owner was not contestable.
New s 33BC provides that that if a consumer becomes contestable under
this division, the consumer will remain contestable despite the consumer's
consumption of gas and the purpose for which the consumer uses the
premises.
New Part 5 Division 3 inserted following new section 33BC.
New Subdivision 1 - Application for contestable customer certification
inserted following division heading.
New s 33BD provides that a consumer may apply in writing to the
relevant fuel gas supplier for certification of the consumer's contestable
status at the consumer's premises.
New s 33BE provides that a fuel gas supplier must decide within one
month of receiving an application under s 33BD, on the basis of actual or
estimated consumption at the applicant's premises, whether or not the
applicant is contestable. If the supplier does not decide within one month,
the supplier is taken to have refused the application.
New s 33BF provides that a fuel gas supplier must, as soon as practicable
after deciding to grant an application, provide an applicant with written
certification of contestable status.
New s 33BG provides that a fuel gas supplier must, as soon as
practicable after deciding to refuse an application, provide an applicant
with written notification of the decision, the reasons for the decision, and
the applicant's right of appeal to the Minister under s 33BH.
New Subdivision 2 - Review of decision to refuse contestable consumer
certification inserted following new s 33BG.
New s 33BH provides that if a gas supplier refuses, or is taken to refuse,
an application for contestability certification, a consumer may request a
Ministerial review of the decision.
New s 33BI provides that the reviewer may request information from the
gas supplier or consumer (the review parties) in order to make a decision
and that the reviewer will notify the parties in writing of the decision and
the reasons.
New s 33BJ provides that in making a decision, the reviewer may seek
information from persons other than the review parties and must disclose
any information to the review parties.
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Treasury Legislation Amendment Bill 2002
New s 33BK provides that, if the reviewer discloses information received
under s 33BJ to the review parties, it will be an offence for a party to
disclose the information to another person without reasonable excuse; if a
review party discloses the information for the review or an appeal, this is a
reasonable excuse.
New s 33BL provides that a review decision binds all parties, with appeal
under the Judicial Review Act 1991.
Clause 16(1) inserts a new Part 5 division heading, "Division
1--Preliminary", before s 33A.
Clause 16(2) inserts a new Part 5 division heading, "Division 4 - Other
provisions relating to contestability", after s 33BL. This provides a division
heading for existing Part 5 provisions currently numbered ss 33BC, 33BD,
33BE and 33BF.
PART 5--AMENDMENT OF PAY-ROLL TAX ACT 1971
Clause 17 introduces the amendments to the Pay-roll Tax Act 1971.
Clause 18 renumbers section 5 of the Pay-roll Tax Act 1971 to correct a
numbering error.
Clause 19 amends section 10 of the Pay-roll Tax Act 1971 so that the
exemption in section 10(2)(j) does not apply to wages paid to an existing
worker.
New section 10(3) outlines the circumstances in which an employee will
be considered to be an existing worker of an employer.
New sections 10(4) and (5) allow the exemption to apply to an existing
worker where an employee commenced a Certificate II traineeship
(whether before or after commencement of the Treasury Legislation
Amendment Bill 2002) to which the exemption in section 10(2) applied or
applies and, having successfully completed the traineeship, commences a
Certificate III traineeship with the same employer. Conditions must be
satisfied.
New section 10(6) prevents circumvention of section 10(3) through an
arrangement having the purpose of obtaining funding for a traineeship or
the pay-roll tax exemption in section 10(2)(j).
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Treasury Legislation Amendment Bill 2002
New section 10(7) will ensure that the exemption continues to apply in
circumstances similar to those outlined in section 10(4) and (5), but where
the ownership of the business in which the worker is employed changes
hands after the worker commences the Certificate II traineeship.
PART 6--AMENDMENT OF QUEENSLAND
COMPETITION AUTHORITY ACT 1997
Clause 20 introduces the amendments to the Queensland Competition
Authority Act 1997.
Clause 21 removes section 63(3). This section is no longer relevant as it
refers to the requirements of section 62, which was removed in a prior
amendment.
Clause 22 restates in clearer terms the previous section 187B(2), which
requires the chairperson to include in a mediation any associate member
appointed for a specific mediation.
Clause 23 restates in clearer terms the previous section 190(2), which
requires the chairperson to include in an arbitration any associate member
appointed for a specific arbitration.
Clause 24 creates a panel of associate members and replaces the
previous arrangements in which associate members were appointed only
for specific tasks.
Clause 25 amends a number of terms in the Schedule. The terms
amended are:
"associate member" is amended to include a person appointed as a
member of the panel of associate members;
"government agency", "government company", "public facility" and
"water supplier" are amended to avoid problems which might arise if the
concept of "the State" were interpreted too narrowly;
"member" is amended to include only associate members appointed for
specific arbitrations and investigations. The previous reference to associate
members appointed for mediations has been removed as mediations are
conducted by the mediator not the authority; and
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Treasury Legislation Amendment Bill 2002
"panel of associate members" is included to accommodate the new
provision for a panel of associate members which will be kept available to
ensure timely availability to the Authority of suitably qualified independent
people for emerging tasks such as investigations, mediations and
arbitrations.
PART 7--AMENDMENT OF QUEENSLAND TREASURY
CORPORATION ACT 1988
Clause 26 introduces the amendments to the Queensland Treasury
Corporation Act 1988.
Clause 27(1) amends section 24(3) to clarify that the subsection applies
to the Corporation or an affiliate.
Clauses 27(2) to 27(4) inclusive, amend section 24(4) to clarify that the
subsection applies to the Corporation or an affiliate and that "related
arrangements", as defined in clause 27(11), may contain the termination
provisions referred to in section 24(4).
Clauses 27(5) and 27(6) amend section 24(5) to clarify that the
subsection applies to the Corporation or an affiliate.
Clauses 27(7), 27(9) and 27(10) amend section 24(6) to clarify that a
severance provision contained in a financial arrangement or other
arrangement entered into by the Corporation or an affiliate, or a "related
arrangement", will have effect despite any other law and without a
provision stating that it will have effect despite any other law being
included in the relevant arrangement.
Clause 27(8) amends section 24(6) to clarify that buildings, structures or
fixtures severed from land under a severance provision contained in a
relevant arrangement will be chattels and not realty.
Clause 27(10) inserts a definition of "related arrangements" which
clarifies that it is not necessary for the Corporation or an affiliate to be a
party to the arrangements which contain the termination provision referred
to in section 24(4) or the severance provision referred to in section 24(6),
provided the arrangement that contains such provision gives effect to, or is
part of, financial arrangements or other arrangements entered into by the
Corporation or an affiliate.
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Treasury Legislation Amendment Bill 2002
PART 8--AMENDMENT OF TAXATION
ADMINISTRATION ACT 2001
Clause 28 introduces the amendment to the Taxation Administration Act
2001.
Clause 29 amends section 60 of the Taxation Administration Act 2001 to
remove the requirement, when remitting assessed interest by way of an
assessment, to issue a notice to the taxpayer where, after any remission and
application of payments received, there is no unpaid amount for an
instrument or transaction.
© State of Queensland 2002