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19 April 2013
On 11 April 2013 the Council of Australian Governments (COAG) Standing Council on Environment and Water (the Council) released a Consultation Regulation Impact Statement (RIS) which seeks stakeholder feedback on options to reduce emissions from wood heaters.
The Consultation RIS suggests that particulate emissions (small pieces of solid matter) from wood heaters are a significant contributor to ‘ambient’, or outside, levels of particle pollution. Some studies show a strong association between exposure to increased particulate levels and adverse health impacts, including respiratory and cardiovascular effects which can increase morbidity and mortality. Some people with certain pre-existing conditions may be more acutely affected.
Owners of wood heaters do not face the full cost resulting from particulate emissions from their heaters. Therefore, the level of wood heater use may be higher than the socially optimal level. The associated health impacts may provide a basis for government intervention.
The RIS considers a number of policy measures that could be implemented to reduce emissions from wood heaters:
- introducing wood heater design or performance standards;
- measures to promote compliance of retail models against these standards; and
- measures influencing the in-service operational performance of wood heaters.
These measures could be delivered through a range of policy ‘vehicles’. The policy delivery approaches examined are a voluntary national program, a collaborative approach or a national regulatory approach. In total the RIS considers 13 policy options.
The closing date for submissions is 15 July 2013. Further information can be found at www.scew.gov.au.
A Consultation RIS was prepared by the Council and assessed as adequate by the Office of Best Practice Regulation.
19 April 2013
In October 2012, the National Marine Safety Committee published the National Standard for General Safety Requirements for Vessels, as approved by the Standing Council on Transport and Infrastructure. The standard applies to domestic commercial vessels not required to be in survey (ie not required to undergo regular mandated inspection). These are low-risk operations involving vessels less than 7.5 metres in sheltered waters.
The National Standard addresses three main problems associated with the current approach to regulating such vessels. Firstly, it creates national consistency in regulatory requirements, which reduces confusion and costs across states & territories. Secondly, it reduces regulatory complexity as the current requirements rely on varying layers of regulation. Finally, it better reflects the risks to crew and passengers of operating such vessels than the various current state requirements.
The impacts of the National Standard will vary by jurisdiction and by vessel type. Overall the impact on the industry is expected to be a reduction in costs. In particular, construction and survey costs are expected to fall significantly for some vessels in most jurisdictions.
The changes were generally supported by industry and come into effect nationally on 1 July 2013.
The RIS was prepared by the National Marine Safety Committee and assessed as adequate by the Office of Best Practice Regulation.
19 April 2013
On 17 April 2013 the Council of Australian Governments (COAG) Standing Council on Environment and Water (the Council) released a Consultation Regulation Impact Statement (RIS) on the management of chemical environmental risks.
The Consultation RIS suggests that the regulatory framework surrounding the management of chemical environmental risks in Australia is incomplete and needs improvement to address unmanaged risks to the environment. In some circumstances, a realisation of these risks could result in loss of ecosystem function, contamination of water or soil, effects on human health, loss of amenity and costly remediation.
In general, responsibilities for regulation are shared between jurisdictions. The Commonwealth undertakes most hazard and risk assessment at a national scale and the states and territories typically deal with on-ground risk management and control of use. The RIS suggests that the key problem in the environment area is that jurisdictions are often not undertaking the risk management actions recommended. These actions may be needed to protect the environment from those industrial chemicals identified by the National Industrial Chemicals Notification and Assessment Scheme as likely to have environmental impacts unless managed appropriately.
The RIS seeks stakeholder feedback on the appropriateness of four options:
- status quo;
- non-statutory development of national environmental risk management decisions;
- national decision adopted using Commonwealth, state and territory legislation; and
- new risk management framework fully implemented under a single national system.
The closing date for submissions is 28 June 2013. Further information can be found at COAG Standing Council on Environment and Water website.
A Consultation RIS was prepared by the Council and assessed as adequate by the Office of Best Practice Regulation.
19 April 2013
On 21 March 2013, the Minister for Climate Change, Industry and Innovation announced the Australian Government’s response to the Climate Change Authority (CCA) review of the Renewable Energy Target (RET) scheme.
The CCA is required by statute to review the RET scheme every two years having regard to a number of broad principles including economic efficiency, environmental effectiveness, equity and consistency. The final report from the first such review was released on 19 December 2012.
The review considered the current operating environment for the RET scheme, which now includes the Carbon Pricing Mechanism. The review found that the RET scheme is complementary to the carbon price as a transitional measure while a carbon price is being established.
The Government response largely agreed with the CCA’s recommendations based on the evidence outlined in the review. Specifically, the Australian Government has agreed to retain the key design features of the RET scheme including:
- separate large-scale and small-scale components; and
- the current profile of annual legislated targets, fixed in terms of gigawatt-hours, under the large-scale component.
A Regulation Impact Statement was prepared by the former Department of Climate Change and Energy Efficiency and assessed as adequate by the Office of Best Practice Regulation.
12 April 2013
On 28 July 2009 the Minister for Finance and Deregulation announced reforms to the Australian Government Procurement Statement which included the requirement for all Government contractors in the textile, clothing and footwear industry to be accredited or be seeking accreditation with the Homeworker’s Code of Practice.
A Regulation Impact Statement was not prepared for the joint proposal by the Department of Education, Employment and Workplace Relations and the Department of Finance and Deregulation for that decision. Consequently, a Post-implementation Review (PIR) was required to be undertaken in line with the Government’s best practice regulation process.
The inclusion of the accreditation requirements in the Australian Government Procurement Statement were introduced to ensure that Australian Government agencies are engaging businesses that promote fair, cooperative and productive workplaces in which employees are treated fairly and with respect.
The impact on stakeholders due to the introduction of the requirement is difficult to quantify since there is no requirement on agencies to report with regard to compliance. Due to the small number of businesses affected by the requirement, it was found that the proposal has had a negligible impact on those manufacturers tendering specifically for Australian Government contracts. The main cost associated with the proposal is an annual fee for businesses seeking accreditation under the Code.
The PIR was prepared by the Department of Education, Employment and Workplace Relations and assessed as adequate by the Office of Best Practice Regulation.
12 April 2013
On 8 April 2013, the Civil Aviation Safety Authority (CASA) announced amendments to the Civil Aviation Order Part 48 to introduce new arrangements for management of flight crew fatigue based on the following 3 tier system:
- Businesses with simple operations will not be required to meet new fatigue management obligations (Tier 1).
- Operations that pose a moderate fatigue risk will be able to continue those operations by meeting certain obligations with minimal cost impact (Tier 2).
- Complex operations that pose a significant fatigue risk will be required to either develop a Fatigue Risk Management System (FRMS), or significantly change their operations in order to comply with the prescriptive limits to avoid the need for an FRMS (Tier 3).
The new arrangements are consistent with International Civil Aviation Organization standards and address deficiencies in the current regulations to take account of advancements in the science of fatigue and evidence of accidents and near misses, both within Australia and internationally.
A Regulation Impact Statement was prepared by CASA and has been assessed as adequate by the Office of Best Practice Regulation.
12 April 2013
Superannuation reporting standards require regulated superannuation funds to provide certain information to the Australian Prudential Regulation Authority (APRA). These reporting standards were previously updated in 2004. Since then, the superannuation industry has evolved significantly and become considerably larger and more complex. In particular, superannuation entities now have a greater number of products, investment options and sub-funds/sub-plans than were previously contemplated.
In addition, the Australian Government’s 2012 ‘Stronger Super’ legislative reforms have given APRA greater data collection powers, coupled with greater obligations to publish industry data. APRA also released new prudential standards in November 2012, which apply to regulated superannuation funds.
On 28 March 2013, APRA released its final package of 35 final reporting standards, reporting forms and instructions for APRA-regulated superannuation funds. The standards implement recommendations from the Government’s Stronger Super reforms, and support the implementation of the revised prudential standards.
The new standards will take account of developments in the superannuation market as well as the prudential regulation framework. In particular, the standards are intended to strengthen APRA’s ability to identify, evaluate and, where appropriate, investigate and respond to risks faced by superannuation entities. It also enables APRA to periodically amend its prudential framework in response to shifts in the size, nature and complexity of the superannuation industry.
The industry is expected to experience both implementation and ongoing costs in complying with the new system. Implementation costs are likely to include new compliance and reporting systems (including IT setup); educating key personnel; and updating internal and external governance arrangements.
Estimates of IT startup costs varied significantly among entities, with responses ranging from $2-8 million. Supplementary service provider costs and extra premiums to meet short timeframes were also varied, with estimates ranging from $400 000 to $1.2 million. The costs per entity may also vary based on the level of support provided by the parent entity. Ongoing compliance costs are expected to be comparatively minor.
The requirements in 24 of the final reporting standards will take effect from 1 July 2013, with the remaining 11 taking effect from 1 July 2014. The first publication using the new data will be published in late 2013, and APRA expects to consult with industry regarding its proposals for new publications later this year.
A Regulation Impact Statement was prepared by APRA and assessed as adequate by the Office of Best Practice Regulation.
11 April 2013
On 22 March 2013, the Equipment Energy Efficiency Committee released a Consultation Regulation Impact Statement (RIS) which examines a proposal to mandate the inclusion of ‘smart appliance’ interfaces in air conditioners, pool pumps, water heaters and electric vehicle chargers.
Along with other policy initiatives, this proposal aims to tackle the broader problem of peak electricity demand, and the significant network investment that is required to meet this (occasional) demand—investment that is passed onto consumers via electricity bills.
More specifically, the mandatory option in the RIS proposes that certain household appliances which contribute to peak demand are fitted with a device—a demand response interface—that can be remotely controlled by an electricity provider. At certain times of the year, such as on very hot summer days when electricity demand peaks, electricity providers can, with the prior approval of households, reduce the energy use of these appliances. This ‘direct load control’ approach takes pressure off the electricity supply network and can help to defer costly network investment.
The public consultation process for this proposal runs for around six weeks and includes meetings in five cities. Submissions close on Friday 3 May 2013. Following the public consultation process, a Decision RIS will be prepared.
The Consultation RIS was prepared by the Department of Climate Change and Energy Efficiency and was assessed as adequate by the Office of Best Practice Regulation.
10 April 2013
On February 23 the Minister for Immigration and Citizenship announced changes to the temporary work (skilled) (subclass 457) visa sponsorship obligations. Further announcements were subsequently made. These measures seek to enhance the enforceability of worker protection reforms which came into effect on 14 September 2009.
Since implementing the 2009 reforms, the Department for Immigration and Citizenship (DIAC) has been alerted to instances where subclass 457 sponsors may be circumventing the policy intent of these laws. These include instances where sponsored persons were not participating in their nominated occupation, program or activity, such as through engaging in certain on-hire or independent contracting arrangements. Some evidence also suggests that sponsors were circumventing their responsibility to not recover the costs of sponsorship by receiving up-front payments from the sponsored person. However, there is limited evidence of the extent of these breaches or of the economic or social harm which may result.
The Government has sought to address these issues through the following regulatory amendments:
- specifically prohibiting on-hire labour agreements that fall outside approved labour agreements;
- preventing sponsors from engaging in certain independent contracting arrangements; and
- strengthening the obligation for sponsors to not recover certain costs from a primary sponsored or secondary sponsored person.
A Regulation Impact Statement was prepared by DIAC and assessed as adequate by the Office of Best Practice Regulation.
22 March 2013
On 8 March 2013, the Minister for Employment and Workplace Relations Bill Shorten, announced further reforms to the Fair Work Act following on from the recommendations of the Fair Work Act Review. These reforms relate to amendments to bargaining for greenfields agreements, right of entry provisions and allowing limited access to workplace determinations in certain circumstances where bargaining has become intractable.
On 14 March 2013, the Prime Minister of Australia also announced amendments to the Fair Work Act which amend the modern awards objective so that the Fair Work Commission must consider the need to provide additional remuneration to certain employees. This amendment relates to employees who work shift work, overtime, unsocial, irregular, or unpredictable hours, or on weekends and public holidays.
The Prime Minister granted an exemption from the Regulation Impact Statement requirements for these amendments on the basis of exceptional circumstances. A Post-implementation review will be required within 1 to 2 years of implementation of the changes.
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Overview. Best Practice Regulation Updates publishes information about regulatory decisions announced by the Australian Government, and by COAG and Ministerial Councils, including Regulation Impact Statements (RIS), the OBPR’s RIS assessments, when a Prime Minister’s exemption has been granted and Post-implementation Reviews.
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