Commonwealth of Australia Explanatory Memoranda

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ROAD CHARGES LEGISLATION REPEAL AND AMENDMENT BILL 2008

2008




               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA






                                   SENATE







           ROAD CHARGES LEGISLATION REPEAL AND AMENDMENT BILL 2008






                    SUPPLEMENTARY EXPLANATORY MEMORANDUM





     Amendments and New Clauses to be Moved on Behalf of the Government









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

           ROAD CHARGES LEGISLATION REPEAL AND AMENDMENT BILL 2008



OUTLINE


The Road Charges Legislation Repeal and Amendment Bill 2008, as introduced,
repeals the Road Transport Charges (Australian Capital Territory) Act 1993
and the parts of the Road Transport Reform (Heavy Vehicles Registration)
Act 1997 which refer to the Road Transport Charges (Australian Capital
Territory) Act.  The Bill also amends the Fuel Tax Act 2006 to implement
changes to the heavy vehicle road user charge necessary to give effect to
revised heavy vehicle charges agreed by all Australian Transport Ministers
on 29 February 2008.

These Senate amendments to the Bill remove the provision allowing the rate
of road user charge to be automatically indexed.  Instead, the proposed
amendments will enable the Transport Minister to declare any changes in the
rate of the road user charge by disallowable legislative instrument.

The proposed amendments will also require that the Transport Minister allow
for public consultation of at least 60 days prior to declaring any increase
in the rate of the road user charge.  In seeking this public feedback, the
Minister must also publish all data, methodologies and formulae used to
arrive at the proposed increased rate of the road user charge.

Finally, the proposed amendments will require that the Transport Minister
have regard to the outcomes of the public consultation process.  However,
if the Minister decides to declare an alternative rate of the road user
charge as a result of the outcomes of the public consultation process, the
Minister is not required to recommence the period of public consultation.


Financial impact statement


The removal of automatic indexation of the road user charge will increase
Australian Government fuel tax credit expenses by $0.0 million in 2008-09,
$40.0 million in 2009-10, $80.0 million in 2010-11, $140.0 million in 2011-
12.
ROAD CHARGES LEGISLATION REPEAL AND AMENDMENT BILL 2008



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.