House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Urban Infrastructure and Cities the Hon Paul Fletcher MP)

OUTLINE

The Road Vehicle Standards (Consequential and Transitional Provisions) Bill 2018 ("the Bill") contains transitional and consequential provisions to support the commencement of the Road Vehicle Standards Bill 2018 (Road Vehicle Standards Bill) as it replaces the Motor Vehicle Standards Act 1989 (Motor Vehicle Standards Act) as the Commonwealth's primary legislation for regulating road vehicle and certain road vehicle components.

Road vehicles and road vehicle components are currently regulated under the Motor Vehicle Standards Act and related delegated legislation (referred to in this document as the old law). The passage of the Road Vehicle Standards Bill will deliver a modern piece of legislation to increase road vehicle safety, provide greater choice and competition in the Australia vehicle market. This Bill makes provision for a twelve-month transition period starting from the full commencement of the Road Vehicle Standards Bill that will allow industry stakeholders to make the necessary changes to transition to the new regulatory framework.

Whilst the Motor Vehicle Standards Act has enabled the effective management of safety, environmental and anti-theft risks to date, the Road Vehicle Standards Bill provides a much simpler and modern legislative framework that covers the changing road vehicle industry, reduces unnecessary regulation and provides a flexible basis in which the legislation can adapt to new innovative technologies into the future.

This Bill provides for a transitional period of twelve months from the commencement of the Road Vehicle Standards Bill during which aspects of the Motor Vehicle Standards Act and related legislation will continue to have effect to ensure that entities currently operating under the old law have sufficient time to transition the Road Vehicle Standards Bill and supporting instruments (referred to in this document as the new law). Clear guidance will be provided to industry stakeholders and the general public to ensure they are aware of any rights or obligations which will apply.

This Bill also provides incentives to certain approval holders to become early adopters of the new regulatory framework introduced by the Road Vehicle Standards Bill. Certain holders of approvals under the Motor Vehicle Standards Act will be able to use the evidence that was submitted to the regulator for their current approvals to obtain new approvals under the Road Vehicle Standards Bill.

This Bill is being introduced to:

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Repeal the Motor Vehicle Standards Act upon full commencement of the Road Vehicle Standards Bill (Schedule 2);

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Make transitional provisions to provide for the regulation of road vehicles and road vehicle components during the transition from the Motor Vehicle Standards Act to the Road Vehicle Standards Bill (Schedule 3); and

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Make consequential amendments to Commonwealth legislation to reflect the repeal of the Motor Vehicle Standards Act and substitute relevant references to the Road Vehicle Standards Bill (Schedule 4).