Explanatory Memorandum
(Circulated by authority of the Minister for the Environment and Heritage, Senator the Hon Robert Murray Hill)General outline and financial impact
The purpose of this legislation is to establish a product stewardship system for waste oil, to encourage greater recycling and reuse of waste oil. The initiative fulfils a commitment the Federal Government made in May 1999 as an outcome of negotiations on the implementation of the A New Tax System - Measures for a Better Environment.
The Product Stewardship (Oil) Bill is the primary legislation that establishesthe machinery and administrative provisions necessary to give administrative support to that purpose. Consequential amendments are made under separate enactments to:
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- the Customs Tariff Act 1995, by the Customs Tariff Amendment (Product Stewardship for Waste Oil) Bill 2000 ;
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- the Excise Tariff Act 1921, by the Excise Tariff Amendment (Product Stewardship for Waste Oil) Bill 2000 ; and the
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- Taxation Administration Act 1953 by the Product Stewardship (Oil) (Consequential Amendments) Bill 2000.
Date of effect: Most provisions in the primary legislation, the Product Stewardship (Oil) Act, will commence on the day on which the Act receives Royal Assent, or on 1 January 2001, whichever is the later. Several Parts dealing with registration for benefits under the Act will commence when the Act receives Royal Assent. This will ensure that instruments and determinations may be made and registration mechanisms can be established before the primary legislation, the Product Stewardship (Oil) Act, takes full effect. This will avoid undue delay in claimants receiving their benefits.
Financial impact: Grants provided under this Act are expected to be in the order of $25.0 million per year, increasing as the volume of recycling increases. As the grants are entitlement-based, the actual figure will vary depending on the total eligible claims paid. The full cost of the grants will be offset by revenue collected through tariff amendments contained in the Customs Tariff Amendment (Product Stewardship for Waste Oil) Bill 2000 and the Excise Tariff Amendment (Product Stewardship for Waste Oil) Bill 2000.
A Regulation Impact Statement is provided in the following section.
Compliance cost impact: The provisions of these Bills will result in compliance costs for those seeking product stewardship benefits under the Product Stewardship (Oil) Act .
The arrangement will provide Commonwealth product stewardship benefits only to eligible claimants. The Government considers it appropriate that those seeking access to the product stewardship benefits maintain sufficient records and evidence to substantiate their claims. These records and evidence will also be needed to enable the Commissioner of Taxation to make a correct assessment of a person's entitlement to the product stewardship benefits.
These compliance costs, however, will be minimal, as the record keeping that is required to access product stewardship benefits under legislation is essentially the same as the record keeping that occurs in the normal course of commercial life.
The Government has been conscious of the compliance costs required for Product Stewardship (Oil) Act in the development of the provisions contained in this Bill and has sought to keep those costs to a minimum.
Application: It is intended that product stewardship benefits will be available for eligible recycling or reuse of oils that occurs on or after 1 January 2001.