House of Representatives

Explanatory Memorandum

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

OVERVIEW

Schedule 1 - Transitional national road vehicle standards

SCHEDULE 1 of the Bill sets that in the first twelve months after Royal Assent of the Road Vehicle Standards Act that the national vehicle standards made under section 7 of the Motor Vehicle Standards Act are taken to be national vehicle standards under clause 12 of the Road Vehicle Standards Bill.

Schedule 2 - Repeal of the Motor Vehicle Standards Act 1989

SCHEDULE 2 of the Bill repeals the Motor Vehicle Standards Act. Repeal of the Motor Vehicle Standards Act will allow for the Road Vehicle Standards Bill to become the Commonwealth's primary legislation for the regulation of the importation and provision of road vehicles and certain road vehicle components into Australia.

Schedule 3- Transitional provisions

SCHEDULE 3 of the Bill will transition various matters currently provided for under the Motor Vehicle Standards Act to the new regulatory framework to be established by the new law. It will also provide for the regulation of road vehicles during the transitional period, starting from the twelve months after the new law receives Royal Assent. The transitional period will be for a period of twelve months and will offer incentives for certain approval holders to make an early transition to operation under the new law.

The Bill also allows for the continuation of Registered Automotive Workshop approvals under the old law arrangements for a period of twelve months - despite the Motor Vehicle Standards Act being repealed.

Part 1 of Schedule 3 sets out key definitions that apply to Schedule 3 of the Bill.

Part 2 of Schedule 3 provides for national vehicle standards, such as the Australian Design Rules made under section 7 of the Motor Vehicle Standards Act, to continue to apply as if they were made under the Road Vehicle Standards Bill. It also provides for the Motor Vehicle Standards (Procedures for Inspecting and Testing Used Imported Vehicles) Determination 2002 made under section 9 of the Motor Vehicle Standards Act to continue to apply for 7 years after commencement of the Bill for the purposes of keeping records.

Part 3 of Schedule 3 includes two divisions. Division 1 provides for the operation of approvals under subsections 10A(1) or (2) of the Motor Vehicle Standards Act to continue in force during the transitional period. Subsection 10A(1) approvals under the Motor Vehicle Standards Act are also known as standard full volume type approvals. Subsection 10A(2) approvals under the Motor Vehicle Standards Act are also known as minor and inconsequential non-compliance full volume type approvals. Division 1 also provides for these approval holders to take up early adoption of type approvals under the new law, with provisions that allow for an easier transition to the new law if it is undertaken in the first six month period of the transitional period.

Division 1 also provides for how approvals under subsection 10A(3) (known as the new low volume schem e) of the Motor Vehicle Standards Act will operate during the transitional period and allows for identification plates to be placed in accordance with the approval during the transitional period.

Division 1 also allows pending applications at the commencement of the transitional period for subsections 10A(1),(2) and (3) of the Motor Vehicle Standards Act to be approved in the transitional period under the provisions of the old law.

Division 2 allows existing Registered Automotive Workshops to continue to apply under section 13C of the Motor Vehicle Standards Act for approval to place a used import plate on a used imported vehicle during the transitional period. Further, it makes provisions for the old law to continue to apply in relation to the granting of such an approval.

During the transitional period, it also provides for approvals granted under section 13D of the Motor Vehicle Standards Act to continue to apply, for pending applications made under section 13C of the old law to be decided under the old law, and for the new law not to apply to the provision of used imported vehicles that have had used import plates placed on them in accordance with an approval granted under the old law.

Part 4 of Schedule 3 includes three Divisions. Division 1 allows for approvals under section 14A (known as nonstandard type approvals) of the Motor Vehicle Standards Act to continue in force during the transitional period; for pending applications at the commencement of the transitional period to be decided under the old law; and for the new law not to apply to the provision of a vehicle during the transitional period if that vehicle was provided in accordance with an approval in force under the old law.

This Division also allows holders of approvals under section 14A of the Motor Vehicle Standards Act to take up early adoption of type approvals under the new law during the first six months of the transitional period. Doing so will allow holders of such approvals to have a smoother transition to the new system, by allowing them to rely on previous evidence submitted to the regulator that supported them obtaining their old law approval.

Division 2 allows for certain approvals granted under the Motor Vehicle Standards Regulations 1989 to continue to apply and allows vehicles covered by such approvals to be imported and provided during the transitional period. During the transitional period, it also provides for pending applications that were made under the old law for such approvals to be decided in accordance with the old law, and for the new law not to apply during the transitional period to the importation of a vehicle or provision of a vehicle imported in accordance with an approval granted under the old law.

Division 3 allows for section 17 of the Motor Vehicle Standards Act, which provides that the importation of standard road vehicles is subject to specified conditions, to continue to apply during the transitional period. Further, the division also allows for the operation of section 17A of the Motor Vehicle Standards Act, which deals with the issue of an authority to deal with an imported road vehicle under the Customs Act 1901, to continue to apply during the transitional period.

This Division also allows for the importation during the transitional period of nonstandard vehicles if, at the commencement of the transitional period, the person had an approval under subsection 19(1) or paragraph 20(1)(b) of the Motor Vehicle Standards Act but had not yet imported the vehicle. Furthermore, it provides for how pending applications for such approvals are to be considered if, at the time of the transitional period commencing, a decision had not been made. It also provides for the new law not to apply to actions taken in accordance with approvals granted under subsection 19(1) or paragraph 20(1)(b) of the Motor Vehicle Standards Act.

In addition, this division provides for the continued existence of the old Register of Specialist and Enthusiast Vehicles (SEVs) established under section 21 of the Motor Vehicle Standards Act during the transitional period. It also empowers the Minister to enter a vehicle onto a new register of Specialist and Enthusiast vehicles to be established under the new law if it is considered to benefit the community.

Part 5 of Schedule 3 provides that if an approval of a Registered Automotive Workshop made under section 21B of the Motor Vehicle Standards Acts was in force prior to the commencement of the transitional period then the approval will continue for the transitional period and be subject to the provisions of the old law. It also outlines how the Minister is to decide pending applications under section 21A and 21C of the Motor Vehicle Standards Act and how those approvals are to be regulated.

Part 6 of Schedule 3 creates an obligation for approval holders to comply with certain conditions after the end of the transitional period. Part 6 also creates offences provisions if an approval holder does not retain a record or export or destroy a vehicle in accordance with the conditions of their approval.

Part 7 of Schedule 3 allows for the Administrator and Associate Administrators appointed under section 22 of the Motor Vehicle Standards Act to continue to hold office during the transitional period. This Part also provides that the Administrator and Associate Administrators will continue to have the same functions and powers under the old law during the transitional period. Additionally, this Part provides that any instrument of delegation will continue during the transitional period, as will the fees that are payable under the old law.

Compliance and enforcement powers under the Road Vehicle Standards Bill will begin at the commencement of the transitional period, and will apply for the purposes of ensuring compliance with this Schedule and any provisions of the old law that apply because of this Schedule. This means the monitoring and investigation powers, located in the Regulatory Powers Act and triggered by the Road Vehicle Standards Bill, can be used to monitor and investigate compliance of approvals with this Bill and the old law provisions.

Part 8 of Schedule 3 replicates provisions in the Motor Vehicle Standards Act in relation to evidentiary certificates and legal proceedings against the Commonwealth.

Part 9 of Schedule 3 empowers the Minister to approve forms and make rules prescribing matters of a transitional nature relating to the amendment or repeals made by this Bill or the enactment of this Bill or the Road Vehicle Standards Bill.

Schedule 4 - Consequential amendments

SCHEDULE 4 of the Bill makes minor consequential amendments to the following Commonwealth legislation:

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Age Discrimination Act 2004;

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A New Tax System (Luxury Car Tax) Act 1999;

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Customs Act 1901;

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Fuel Tax Act 2006;

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Interstate Road Transport Act 1985;

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Interstate Road Transport Charge Act 1985;

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National Environment Protection Council Act 1994; and

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Trans-Tasman Mutual Recognition Act 1997.

Financial impact statement

No significant direct or indirect financial impact on the Commonwealth will arise from the introduction of this Bill.

Regulation impact statement

Refer to the explanatory memorandum for the Road Vehicle Standards Bill 2018.