Senate

Supplementary Explanatory Memorandum

Circulated by authority of the Minister for Infrastructure, Transport, Regional Development and Local Government the Honourable Anthony Albanese, MP

NOTES ON CLAUSES

Amendment 1

This amendment has the same effect as Item 1 in the Bill but simplifies the wording used. That is, the Fuel Tax Credit is now reduced by the amount of the road user charge (21 cents per litre unless determined by the Transport Minister) rather than the road user charge being only that determined by the Transport Minister.

Amendment 2

This amendment opposes Item 3 in the Bill which would have added a reference to the definition of 'road user charge'. This reference to a new definition is no longer required given Amendment 6 below.

Amendment 3

This amendment is a consequence of reverting the declaration of a rate of the road user charge back to a Ministerial determination as described in Amendment 6.

Amendment 4

This amendment is a consequence of removing the ability to automatically index the rate of the road user charge through a regulatory mechanism as described in Amendment 7.

Amendment 5

This amendment is a consequence of reverting the setting of the rate of the road user charge from a rate prescribed by regulation to a determination by the Transport Minister as described in Amendment 6.

Amendment 6

This amendment reverts the setting of the rate of the road user charge from a rate prescribed by regulation to a determination by the Transport Minister. Removing the ability to automatically index the rate by regulation allows reversion to a determination by the Minister. This determination would be a disallowable legislative instrument.

Amendment 7

This amendment replaces the ability to automatically index the rate of the road user charge through a regulatory mechanism with a provision that will allow the Transport Minister to determine a rate of the road user charge by disallowable legislative instrument.

A new subsection (9) is introduced which establishes two conditions that must be met before the Transport Minister can make a determination that would increase the rate of the road user charge. These conditions are:

a.

a period of at least 60 days public consultation during which time the Transport Minister must publish:

i.

the proposed rate of the road user charge; and

ii.

any information (i.e. data, methodologies or calculations) used in determining the proposed increase in the rate of the road user charge; and

b.

the Transport Minister must have regard to comments received during the period of public consultation.

A new subsection (10) provides that, should an alternative rate of the road user charge other than that originally proposed by the Transport Minister be identified or recommended as a result of comments received during the period of public consultation, the Minister can determine this alternative rate without having to undertake a new period of public consultation.

Amendment 8

This amendment is a consequence of reverting the setting of the rate of the road user charge from a regulation to a determination by the Transport Minister as described in Amendment 6. The definitions which were to be repealed in the Bill are now required.