Senate

Supplementary Explanatory Memorandum

(Circulated by authority of the Minister for Regional Services, Minister for Sport and the Minister for Local Government and Decentralisation, Senator the Hon Bridget McKenzie)

Outline

The Industrial Chemicals (Consequential Amendments and Transitional Provisions) Bill 2017 (the bill) was introduced to the House of Representatives on 1 June 2017.

The bill is part of a legislative package that establishes the legislative framework for a new risk-based regulatory scheme for the Commonwealth to continue to regulate the introduction of industrial chemicals in Australia. The scheme will see regulatory effort more proportionate to the level of risk to human health and safety or the environment from the introduction and use of industrial chemicals, while maintaining Australia's robust health, safety and environmental standards.

The bill provides the legal framework to deal with transitional matters that arise from the enactment of the Industrial Chemicals Bill 2017 (referred to throughout this supplementary explanatory memorandum as 'the new law') as it replaces the Industrial Chemicals (Notification and Assessment) Act 1989 (referred to throughout this supplementary explanatory memorandum as 'the old law').

The amendments to the bill included in this Supplementary Explanatory Memorandum will change specific dates throughout the bill consistent with amendments to the Industrial Chemicals Bill 2017 that change the commencement date of the new scheme to 1 July 2020 and will align and clarify certain aspects of the transitional arrangements to reduce the need to rely on the rule making power for modification of the bill provided for in item 50 of the bill.

The amendments in relation to changing specific dates will:

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change all references to 1 July 2018 to the new commencement date of 1 July 2020.

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change all references relating to the registration year at the time of commencement of the new scheme from the registration year beginning on 1 September 2017 to the registration year beginning on 1 September 2019.

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change all references to the new registration year commencing under the new law from the registration year beginning on 1 September 2018 to the registration year beginning on 1 September 2020.

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change all references to the end of the 12 month transition period occurring on 1 July 2019 to 1 July 2021 to reflect that this will occur 12 months after commencement of the new scheme.

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change references to the end of the 24 month period for potential modifications under the rules from 1 July 2020 to 1 July 2022.

The amendments that align and clarify certain aspects of the transitional arrangements will:

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put beyond doubt the intent to preserve any conditions relating to early introduction permits issued under the old law which will continue to authorise the introduction of a low risk chemical under the new law until a decision is made on the related application for an assessment certificate;

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make it clear that existing notification obligations under the old law relating to assessment certificates, which apply if additional information becomes available regarding an adverse effect of a chemical, will continue to apply to assessment certificates issued under the old law and transitioned to the new law; and

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remove the reference to pending applications for renewal of commercial evaluation, low volume and controlled use permits from the bill, which will instead be dealt with in the rules. The rules will set out that a pending renewal application will be treated as though it was an application to vary the period of a commercial evaluation authorisation or an assessment certificate consistent with the arrangements under the new law.

Financial Impact Statement

There are no financial impacts from introducing these amendments.