Management Arrangements for the Woomera Prohibited Area – Single-stage Regulation Impact Statement – Department of Defence

09 May 2014

On 27 March 2014, the Minister for Defence introduced to Parliament the Defence Legislation Amendment (Woomera Prohibited Area) Bill 2014 to establish a framework for the management of non-Defence use of the Woomera Prohibited Area (WPA) in co-existence with the primary Department of Defence (Defence) use. The framework is the final stage of implementation of the 2011 Review of the Woomera Prohibited Area. The new framework generally maintains existing arrangements for established users, but is designed to provide greater certainty of access to the WPA for new mining and resources activities and greater certainty for all non-Defence users around the extent of Defence use of the area. The framework is expected to reduce the transaction costs for mining and resources businesses of gaining access to the WPA by introducing standard permit arrangements in place of case-by-case negotiations. The Regulation Impact Statement (RIS) estimates that the changes will result in net savings in regulatory costs of around $69,000 annually, based on an assumption that four new mines would be established over a 10 year period (the equivalent of around $173,500 for each mining operation). The proposal has been assessed as likely to primarily impact a single sector and be of relatively minor significance in the broader economy. The Office of Best Practice Regulation (OBPR) has therefore given this a D rating (on a scale of A to D) in relation to the level of analysis required. A Single-stage RIS was prepared and certified by the Department of Defence, and has been assessed as adequate by the OBPR. The OBPR has agreed to the regulatory cost estimates. The OBPR notes that as no decision has been previously announced by the current Government, an Options-stage RIS was not required and a Single-stage RIS has been prepared. A Prime Minister’s exemption from the RIS requirements was granted by the then Prime Minister for the Government Response to the Review of the Woomera Prohibited Area, which was reported by the OBPR on 6 May 2011. As a result, a post-implementation review is required to be completed within 2 years of implementation. As the RIS reported here covers only part of the framework arising from the Review of the WPA, it does not replace the need to undertake a post-implementation review. The RIS was prepared under the July 2013 Australian Government best practice regulation requirements in conjunction with the interim RIS process guidance note.