Explanatory Memorandum
(Circulated by the authority of the Minister for the Environment and Energy, the Hon Josh Frydenberg MP)PRODUCT EMISSIONS STANDARDS (EXCISE) CHARGES BILL 2017
NOTES ON INDIVIDUAL CLAUSES
Clause 1 - Short title
1. This clause provides the short title by which the Act may be cited is the Product Emissions Standards (Excise) Charges Act 2017.
Clause 2 - Commencement
2. This clause provides that the whole of the Excise Charges Act will commence at the same time as the Bill commences. However, if the Bill does not commence, the provisions of the Excise Charges Act will also not commence.
Clause 3 - Act binds the Crown
3. This clause provides that the Excise Charges Bill binds the Crown in each of its capacities.
Clause 4 - Definitions
4. This clause defines key terms used in the Excise Charges Bill. For example, the term amount, for the purposes of the Excise Charges Bill, is defined to include a nil amount.
Clause 5 - Imposition of charge
5. This clause imposes a charge on the manufacture of emissions-controlled products. The liability to pay the charge will arise at the time of manufacture. Although the Bill does not directly regulate manufacturers of emissions-controlled products, imposing a charge on the domestic manufacture of these products ensures that the imposition of the charge is applied consistently in relation to all emissions-controlled products that are supplied to the Australian market (clause 5 of the Customs Charges Bill imposes a charge on the importation of emissions-controlled products).
6. The Excise Charges Bill, together with the Customs Charges Bill, would enable full cost recovery of the costs associated with regulating emissions-controlled products. This is done through the imposition of a charge on the import and manufacture of emissions-controlled products, as well as the imposition of any fees under the Bill.
Rules made under clause 51 (Rules) of the Bill for particular types or classes of emissions-controlled products may provide for the collection and recovery of charges imposed under the Excise Charges Bill. This would include details of when the charge must be paid. It is necessary that this detail be specified in the rules for an emissions-controlled product as the circumstances in which the collection and recovery of the charge associated with the manufacture of the emissions-controlled product may change depending on the type of product.
Clause 6 - Amount of charge
7. This clause would enable the amount of the charge to be imposed on the manufacture of an emissions-controlled product to be prescribed by the regulations or worked out in accordance with a method prescribed by the regulations. As the amount of the charge includes a nil amount (see the definitions at clause 4), the regulations may prescribe a threshold below which the liability to pay the charge is waived. Alternatively, the regulations may also prescribe a cap on the amount of charge to be paid for a particular period. A method prescribed by the regulations may include, for example, the ability for the charge to increase in accordance with the Consumer Price Index, or some other specified formula.
8. It is necessary to have the flexibility to prescribe the detail of the amount of the charge, or the method for working out the amount of the charge, in the regulations as different charges may be prescribed for different emissions-controlled products. Consistent with Australian Government policy, the amount of any applicable charge for different types of emissions-controlled products will be determined on a case-by-case basis through a Cost Recovery Implementation Statement. The amount of the charge imposed would be set at a level that is designed to recover no more than the estimated cost of regulating the type of emissions-controlled product.
Clause 7 - Liability for charge
9. This clause imposes the liability to pay the charge on the manufacture of an emissions-controlled on the person who manufactures the emissions-controlled product.
10. Clause 22 of the Bill requires a person who makes the first supply of an emissions-controlled product that is manufactured in Australia to provide a report to the Secretary. The information contained in this report will assist in determining a manufacturer's liability to pay the charge on the manufacture of the emissions-controlled product.
Clause 8 - Regulations
11. This clause enables the Governor-General to make regulations prescribing matters that are either required or permitted by the Excise Charges Bill to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Excise Charges Bill.