On 3 June 2014, the Minister for Agriculture released for consultation an exposure draft mandatory port access code of conduct for bulk wheat exports and an associated Regulation Impact Statement (RIS). The RIS examines options for improving access to port terminals for bulk wheat exporters. One option is the introduction of a mandatory code of conduct for all port terminal service providers. The code is aimed at standardising access arrangements and improving the transparency of bulk wheat exports. If implemented by 30 September 2014, the code would replace the Wheat Export Marketing Act 2008. A RIS has been prepared by the Department of Agriculture for consultation, along with the draft code. Submissions on the draft code and RIS close at 5pm on Friday 24 June 2014.
Published Impact Analyses
Official website for Published Impact Analyses for decisions announced by the Australian Government, Ministerial Forums and National Standard Setting Bodies.
Compulsory superannuation is intended to address myopia – the tendency of people to not save adequately for retirement because it is too far into their future for them to make adequate provision for their needs. Since 1992, employers have been required to make superannuation contribution for their eligible employees, at a rate set by the Superannuation Guarantee (SG). The SG is intended to provide for a higher standard of living in retirement than is possible from relying on the age pension alone. The SG is currently legislated to increase from 9 to 12 per cent in a stepped process which commenced from 1 July 2013 with a 0.25 per cent increase to 9.25 per cent, with a further 0.25 per cent increase scheduled on 1 July 2014. It is then legislated to increase in increments of half a per cent each year until it reaches 12 per cent on 1 July 2019.
Regulatory Impact Statement - Attorney-General’s Department.
On 6 May 2014, the Attorney-General’s Department released a Regulation Impact Statement for consultation examining a proposal to ban the importation of substances which mimic the effects of illicit drugs. These substances are also known as new psychoactive substances. The Attorney-General’s Department has raised concerns that new psychoactive substances are not currently a prohibited import, unless they are listed on the criminal code, this allows potentially harmful pyschoactive substances to be legally imported into Australia. The Attorney-General’s Department invites submissions on the Regulation Impact Statement. Submissions were open until 5pm on Thursday, 22 May 2014.
On 30 January 2014, the Australian Prudential Regulation Authority (APRA) announced changes to the prudential and reporting standards for authorised deposit-taking institutions (ADIs). The changes primarily relate to liquidity requirements – that is, the amount of high-quality, liquid assets held by ADIs to provide a buffer during periods of prolonged liquidity stress in capital markets. Under the current regime, ADIs are required to hold liquid capital sufficient to allow them to continue operating for at least five business days in adverse operating circumstances specific to the ADI. Under the proposed changes, an ADI will need to demonstrate that it can survive for a period of at least 30 days using its own resources, without any need for extraordinary public sector intervention. These changes are intended to provide a more manageable time horizon for APRA and the Reserve Bank of Australia to resolve a liquidity crisis.
On 28 April 2014, the Treasurer announced the signing of an intergovernmental agreement (IGA) between Australia and the United States regarding the United States’ Foreign Account Tax Compliance Act (FATCA). FATCA aims to prevent US tax evasion by detecting untaxed income and assets held by US taxpayers in financial institutions outside the US. FATCA will commence on 1 July 2014 and will require foreign financial institutions – including financial institutions in Australia – to report details of accounts held by their US customers to the US Internal Revenue Service (IRS). Those institutions that do not comply will face a 30 per cent withholding tax on their US-sourced income.
On 2 April 2014, the Minister for Small Business released for consultation an exposure draft of amendments to the Franchising Code of Conduct ('the Code') and relevant provisions in the Competition and Consumer Act 2010 ('the CCA'). The amendments build upon the recommendations of the independent review of the Code by Alan Wein in 2013. The details-stage Regulation Impact Statement (RIS) prepared by the Treasury examines several problems with franchising in Australia. These include unnecessary obligations on franchisors preparing and updating agreements, inability of franchisees to understand complex agreements, inequitable situations during insolvency, onerous contractual terms and questionable behaviour such as bullying or unreasonable demands.
National Injury Insurance Scheme: Motor Vehicle Accidents –COAG Consultation Regulation Impact Statement –Standing Council on Federal Financial Relations On 16 April 2014, the Standing Council on Federal Financial Relations released a Consultation Regulation Impact Statement (RIS) on implementing a National Injury Insurance Scheme (NIIS)
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.
On 7 March 2014, the Reserve Bank of Australia (RBA) decided in principle to vary the ‘Access Regimes’ for the Mastercard and Visa systems in Australia and to remove the prudential oversight framework. To issue a Mastercard or Visa card in Australia you need to be an Authorised Deposit-taking Institution (ADI). While a specialised ADI category was created in 2004-05 (specialist credit card institutions) with the intention of encouraging market participation, it is considered that the requirement to be an ADI is preventing market access and restricting competition. In particular:
On 8 April 2014, Australia’s Minister for Trade and Investment Andrew Robb and his South Korean counterpart, the Minister for Trade, Industry and Energy Yoon Sang-jick, formally signed the Korea-Australia Free Trade Agreement (KAFTA) in Seoul. The Office of Best Practice Regulation (OBPR) assessed the agreement as likely to have a measurable impact on substantial sectors within the economy. Over the past decade Korea’s economic importance to Australia has expanded significantly to become Australia’s third-largest export market, fourth-largest trading partner and a growing investment partner. Korea is a particularly significant market for Australia’s agricultural exports, including raw sugar, beef, grains, dairy, wine, seafood and horticulture. Korea is also a significant export destination for Australia’s resources.