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Ban on importation of new psychoactive substances – Regulation Impact Statement – Attorney-General’s Department

On 17 July 2014, the Minister for Justice introduced the Crimes Legislation Amendment (Psychoactive Substances and Other Measures) Bill 2014, which proposes to ban the importation of all substances that have a psychoactive effect that are not otherwise regulated. The amendments criminalise the importation of new psychoactive substances and permit Australian Customs and Border Protection Service officers to seize unknown substances that are not existing illicit drugs or do not have a regulated legitimate use. The ban aims to address the importation of substances which mimic the psychoactive effects of, or are marketed as legal alternatives to, illicit drugs. The underlying concern is that these substances are frequently of unknown origin and are potentially harmful. There are examples where these drugs have proven equally as harmful as existing illicit drugs. The proposal would complement state and territory government actions to control the manufacture, sale and advertisement of these substances. Cost impacts are mostly limited to individuals and businesses that have sought to test the boundaries of existing illicit drug laws. There are also potential costs for businesses or individuals in demonstrating why a suspicious import should not be seized. However, it was assessed that there would only be rare cases where a legitimate import would be caught. The proposal has been assessed as likely to have a limited impact on the economy with minor impacts on competition. A Regulation Impact Statement (RIS) was prepared and certified by the Department under the March 2014 Australian Government best practice regulation requirements, and has been assessed as compliant by the Office of Best Practice Regulation. As the RIS was not able to demonstrate the net benefit of the proposal to the standard required by the best practice regulation requirements, it made no recommendation for regulatory change. However, the RIS noted that the Government may still choose to intervene on a precautionary basis to stop the growth of the market and reduce use. The Government has adopted this precautionary approach and has decided to regulate. A Regulation Impact Statement (RIS) for consultation was previously prepared by the Attorney-General’s Department and was published on 6 May 2014. The OBPR advises that the preparation of the RIS was not consistent with best practice because the RIS was not consulted on for at least 30 days. More details are provided in the OBPR’s assessment advice to the Attorney-General’s Department. The RIS estimates there is no annual regulatory cost burden. The OBPR has agreed to the regulatory cost estimate.