Regulatory Reform Omnibus Act 2025 (73 of 2025)

Schedule 4   Amendments to increase government efficiency and improve productivity

Part 5   Improving fuel security

Division 1   Temporary reduction power

Fuel Security Act 2021

21   After section 16

Insert:

16A Temporary reduction by Minister

(1) The Minister may, by legislative instrument, reduce the quantity of stocks of an MSO product that an entity must hold on specified obligation days.

Note: For specification by class, see subsection 13(3) of the Legislation Act 2003.

(2) However, the Minister may do so only if the Minister is satisfied that the reduction is necessary:

(a) to meet Australia's obligations under the International Energy Agreement; or

(b) to prevent or alleviate a disruption or likely disruption to supply of the product.

(3) The reduction must not be greater, or apply to more obligation days, than is reasonably necessary:

(a) to meet those obligations; or

(b) to prevent or alleviate the disruption or likely disruption.

(3A) In addition, the period of the reduction must not exceed 6 months. However, the Minister may make reductions under this section for the MSO product for the entity for additional periods not exceeding 6 months each.

Interaction with section 18 reductions

(4) If the reduction applies on an obligation day that falls within a temporary reduction period under section 18 for the entity and the product, the reduction for the entity for the day is the greater of the following:

(a) the reduction under this section;

(b) the reduction under section 18.

Working with Energy Ministers

(5) Before making a reduction under this section, the Minister must inform the Energy Ministers (within the meaning of the Liquid Fuel Emergency Act 1984) of the proposed reduction.

(6) The Minister must consider making such a reduction if requested by one of those Energy Ministers to do so.