Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment

Current status

This bill became law on Dec 13th, 2022.

Policy area

Climate, energy & environment

What does this bill do?

Australia can now set import levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. rates for synthetic greenhouse gasesIndustrial gases covered by the bill that trap heat in the atmosphere and are regulated through import controls and levies. by regulation instead of keeping the old $165 cap, as long as the total levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. does not recover more than likely government program costs.

Why was it introduced?

Old levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. caps and an obsolete charge on ozone-depleting equipment left the government’s ozone program unable to update cost recovery cleanly, even though no importers had paid that equipment levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. since 1 January 2018. The bill lets levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. rates be set by regulation to recover likely program costs, removes the unused equipment levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them., and lets officials handle some exemptions.

Broader context

Australia’s ozone and synthetic greenhouse gas controls were built around the Montreal ProtocolThe international treaty Australia relies on for its ozone controls, and which the bill is presented as supporting., but by 2022 one part of the levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. system had become outdated: statutory caps limited clean cost recovery updates, and an equipment levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. for ozone-depleting substancesChemicals that damage the ozone layer and are still tightly controlled in a few special cases. had not been paid since 1 January 2018 because those imports had become rare and tightly limited. After similar reforms introduced in December 2021 lapsed before the election, the 2022 bill revived the changes by shifting levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them.-setting to regulations, removing the unused equipment charge, and streamlining exemptions, before passing Parliament and receiving Royal AssentThe final step that turns the bill into an Act of Parliament. in December 2022.

Key criticism

No significant public case against the bill is recorded so far, with the measures presented mainly as routine updates to levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. settings and exemption administration. No party represented in the debate opposed it, and coalition as well as government speakers described it as a sensible administrative reform.

Who supported it?

Hon Tanya Plibersek MP introduced this bill. It passed on the voices.

Introduced in House 28 Sept 2022
Passed House 30 Nov 2022
Passed Senate 01 Dec 2022
Became law 13 Dec 2022

Did it become law?

Yes

Became law 13 Dec 2022

Final passage

Passed without a counted vote

Members called out ‘aye’ or ‘no’ — no individual votes were recorded.

Passage speed

76 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

What does this bill do?

  1. Australia can now set import levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. rates for synthetic greenhouse gasesIndustrial gases covered by the bill that trap heat in the atmosphere and are regulated through import controls and levies. by regulation instead of keeping the old $165 cap, as long as the total levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. does not recover more than likely government program costs.

  2. Importers of HCFCsA type of controlled chemical mentioned in the levy rules and charged under its own rate-setting provisions. and methyl bromideA controlled fumigant chemical that is still subject to levy and import rules under the scheme. can now be charged under rates or calculation methods set in regulations, replacing the old capped amounts in the law.

  3. Australia stops charging the import levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. on equipment that uses ozone-depleting substancesChemicals that damage the ozone layer and are still tightly controlled in a few special cases., which now only comes in under very limited special-purpose cases.

  4. Imports of equipment containing synthetic greenhouse gasesIndustrial gases covered by the bill that trap heat in the atmosphere and are regulated through import controls and levies. stay free from levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. when the equipment does not need a licence, including low-volume, temporary, private or returning Australian equipment imports.

  5. Senior Environment Department officials can now decide some levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. exemptions instead of every exemption needing the minister, which should speed up routine decisions while keeping ministerial directions in place.

Show source excerpts
  1. Under table item 2 of the table in new subsection 3A(14), before the Governor-General makes regulations for the purpose of subsection 3A(7) (prescribing the rate of the levy imposed on the import of SGGs), the Minister would have to be satisfied that the effect of the Import Levy Act and the Manufacture Levy Act would be to recover no more than the Commonwealth’s likely costs of the kind in paragraphs 65D(a), (b), (c) or (ca) of the OPSGG Act, being costs that are unlikely to be offset by fees charged under the OPSGG Act or regulations made under it. These costs relate to the administration of the OPSGG Program. This requirement would ensure that the levy rate is appropriate and does not exceed the Commonwealth’s expected costs, consistent with the Australian Government Charging Framework.
    Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment explanatory memorandum
  2. New subsection 4(5) would provide that the amount of levy imposed by subsection 4(1) in a reporting period is the amount prescribed, or worked out in accordance with a method prescribed, by the regulations. This would have the effect of removing the cap on the levy that could be prescribed in respect of the import of HCFCs and methyl bromide.
    Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment explanatory memorandum
  3. Existing section 4B deals with the imposition of a levy on the import of ODS equipment. Imposing this levy is no longer considered appropriate as licences for the import of ODS equipment are only able to be granted under the OPSGG Act in very limited circumstances (such as where the equipment is essential for medical, veterinary, defence, industrial safety, public safety or scientific purposes, and no practical alternative exists). It is not considered appropriate to impose a levy on the import of ODS equipment in such circumstances.
    Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment explanatory memorandum
  4. New subsection 4A(3) would provide that subsection 4A(1) does not apply to the import of SGG equipment if the import is covered by the low volume imports exemption under subsection 13AA(4) of the OPSGG Act, as would be amended by the OPSGG Bill, or the import is covered by the prescribed equipment exception, private or domestic use exception, temporary imports exception, or returning Australian equipment exception (as outlined in subsections 13AA(6), (7), (8) and (9) of the OPSGG Act, as would be amended by the OPSGG Bill). This would ensure that imports of SGG equipment that do not require a licence under the OPSGG Act likewise do not have levy imposed on the import.
    Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment explanatory memorandum
  5. New subsection 3A(12) would allow the Minister to, by writing, delegate the Minister’s power in subsection 3A(9) (to exempt a licensee from paying the levy) to the Secretary, Senior Executive Service employees and APS employees in an Executive Level 2 position in the Department. In exercising this power, delegates must comply with any directions of the Minister (new subsection 3A(13)). This will ensure that the power in subsection 3A(9) is exercised appropriately and consistently.
    Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment explanatory memorandum

Broader context for this bill

Australia’s ozone and synthetic greenhouse gas controls were built around the Montreal ProtocolThe international treaty Australia relies on for its ozone controls, and which the bill is presented as supporting., but by 2022 one part of the levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. system had become outdated: statutory caps limited clean cost recovery updates, and an equipment levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. for ozone-depleting substancesChemicals that damage the ozone layer and are still tightly controlled in a few special cases. had not been paid since 1 January 2018 because those imports had become rare and tightly limited. After similar reforms introduced in December 2021 lapsed before the election, the 2022 bill revived the changes by shifting levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them.-setting to regulations, removing the unused equipment charge, and streamlining exemptions, before passing Parliament and receiving Royal AssentThe final step that turns the bill into an Act of Parliament. in December 2022.

  1. 1987

    Montreal ProtocolThe international treaty Australia relies on for its ozone controls, and which the bill is presented as supporting. sets the basis for Australia's ozone controls

    Speakers in the bill debate said Australia’s ozone protection and synthetic greenhouse gas laws grew out of the 1987 Montreal ProtocolThe international treaty Australia relies on for its ozone controls, and which the bill is presented as supporting. to phase down harmful gases.

    Hansard ↗
  2. 01 Jan 2018

    Equipment levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. on ozone-depleting substancesChemicals that damage the ozone layer and are still tightly controlled in a few special cases. stops being used in practice

    The explanatory material said no importers had paid the levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. on equipment using ozone-depleting substancesChemicals that damage the ozone layer and are still tightly controlled in a few special cases. after 1 January 2018, leaving an obsolete charge in the law.

    Explanatory memorandum ↗
  3. December 2021

    Earlier version of the reform bills lapses before the 2022 election

    Government and opposition speakers said the 2022 package largely revived near-identical bills introduced by the previous government in December 2021 that later lapsed when Parliament rose for the election.

    Hansard ↗
  4. 28 Sept 2022

    Government reintroduces the levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. changes

    The minister told Parliament the bill was needed so cost recovery for the Ozone Protection and Synthetic Greenhouse Gas Management ProgramThe government program that administers the import, manufacture and compliance system for these gases, and whose costs the levy helps recover. could continue to work effectively.

    Hansard ↗
  5. 01 Dec 2022

    Parliament passes the bill

    Both houses passed the bill in the same form, clearing the way for the levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. caps to be replaced by regulation-based settings and for the unused equipment levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. to be removed.

    Parliamentary timeline ↗
  6. 13 Dec 2022

    Royal AssentThe final step that turns the bill into an Act of Parliament. makes the changes law

    Royal AssentThe final step that turns the bill into an Act of Parliament. completed the reform so the government could modernise levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. settings and delegate routine exemption decisions under the amended scheme.

    Parliamentary timeline ↗

How did it move through Parliament?

House Senate
Introduced 28 Sept 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 28 Sept 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 10 Nov 2022

The bill reached this recorded parliamentary step.

Sent to Federation Chamber for debate 29 Nov 2022

The bill reached this recorded parliamentary step.

Referred to Federation Chamber

Second reading debate 30 Nov 2022

The bill reached this recorded parliamentary step.

House second reading agreed 30 Nov 2022

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Returned from Federation Chamber 30 Nov 2022

The bill reached this recorded parliamentary step.

Reported from Federation Chamber

House third reading agreed 30 Nov 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 30 Nov 2022

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 30 Nov 2022

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Second reading debate 01 Dec 2022

The bill reached this recorded parliamentary step.

Senate second reading agreed 01 Dec 2022

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 01 Dec 2022

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 01 Dec 2022

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 13 Dec 2022

The Governor-General gave Royal AssentThe final step that turns the bill into an Act of Parliament., turning the bill into an Act.

The main case against this bill

No significant public case against the bill is recorded so far, with the measures presented mainly as routine updates to levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. settings and exemption administration. No party represented in the debate opposed it, and coalition as well as government speakers described it as a sensible administrative reform.

Recorded criticism was largely absent rather than a substantive case against the bill.

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

30 Nov 2022

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

01 Dec 2022

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Tanya Plibersek

Australian Labor Party • MP 28 Sept 2022

Plibersek supports the bill, saying it updates the levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. system so the ozone and synthetic greenhouse gas program can keep recovering its costs effectively.

Read in Hansard ↗
Lead supporting voice Supports

Barnaby Joyce

National Party • MP 30 Nov 2022

Barnaby Joyce backs the bill, using the ozone and Montreal protocolThe international treaty Australia relies on for its ozone controls, and which the bill is presented as supporting. experience to argue that coordinated action on harmful gases can work without wrecking the economy.

Read in Hansard ↗
Lead voice Supports

Josh Wilson

Australian Labor Party • MP 30 Nov 2022

Wilson supports the bill and says it completes the remaining ozone and synthetic greenhouse gas reforms, which he argues are an important but incremental part of Australia’s climate and environmental response.

Read in Hansard ↗
Lead voice Supports

Steve Georganas

Australian Labor Party • MP 30 Nov 2022

Steve Georganas supports the bill because he says it will help phase down harmful hydrofluorocarbonsA major group of synthetic greenhouse gases discussed in the bill as substances Australia wants to phase down., meet Australia’s emissions targets, and strengthen the ozone protection and synthetic greenhouse gas program.

Read in Hansard ↗

All speeches by bloc

Labor

8 speakers · 10 contributions · 8 support

  1. Susan Templeman Susan Templeman supports the bill and says it strengthens Australia’s ozone and synthetic greenhouse gas program, helps phase down harmful HFCsA major group of synthetic greenhouse gases discussed in the bill as substances Australia wants to phase down., and keeps the country on track to meet its climate targets.
    “These bills improve the effectiveness and efficiency of the Ozone Protection and Synthetic Greenhouse Gas Management Program and will keep it strong. We know that protecting the ozone layer is paramount to the wellbeing of Australians and the Australian environment. We'll make these changes through regulating the manufacture, import, export, use and disposal of ozone-depleting substances and synthetic greenhouse gases.”

    Australian Labor Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗
  2. Zaneta Mascarenhas Mascarenhas supports the bill, saying it updates the ozone protection levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. framework and improves governance while keeping industry obligations and enforcement workable.
    “I also recognise that this bill overhauls the governance processes that continue to meet our targets. Ensuring financial stability of the ozone protection synthetic gas program means supporting industry in understanding their legislative obligations and better oversight over legislative enforcement. This bill achieves this in simplistic terms by removing caps on the levies of ozone-depleting substances, removing the existing levy on existing equipment that can't be phased out at the moment and also making other, minor amendments to the machinery of the act.”

    Australian Labor Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗
  3. Tony Zappia Zappia supports the bill and says it is a critical part of the response to climate change because it updates outdated rules, makes compliance easier for business, and strengthens enforcement.
    “A multipronged response is required, and this legislation, in my view, is a critical part of that response. For that reason I commend the bill to the House.”

    Australian Labor Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗
  4. Libby Coker Coker supports the bill, saying it is a sensible and practical reform that will cut synthetic greenhouse gas emissions, help Australia meet its targets, and strengthen the ozone protection program.
    “Reforms within this bill lay the foundation for the future. They create additional initiatives to reduce synthetic greenhouse gas emissions and help Australia to meet its 2030 targets. It is also just another way that we can work effectively with our Pacific neighbours and give them support. These measures are sensible, practical and have wide support. Importantly, this bill reinforces Australia's place as a global partner which believes in the science, one that is prepared to play its role in protecting the health of our planet and our people. I commend the bill to the House.”

    Australian Labor Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗
  5. Graham Perrett 2 contributions Graham Perrett supports the bill and says it will strengthen Australia’s ozone and synthetic greenhouse gas program by reducing administrative burden, improving enforcement and helping the country meet its climate goals.

    Hansard records 2 separate contributions by Graham Perrett on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Australian Labor Party • MP • 10 Nov 2022

    Graham Perrett supports the bill and says it will strengthen Australia’s ozone and synthetic greenhouse gas program by reducing administrative burden, improving enforcement and helping the country meet its climate goals. He argues it is a practical example of scientists and politicians working together, and he commends it to the House.

    “The ozone protection and synthetic greenhouse gas bills of 2022 are not spectacular pieces of legislation on one level, but they show what scientists and politicians can do when they work in concert. I commend the legislation to the House.”
    Read this contribution in Hansard ↗

    Second reading speech Australian Labor Party • MP • 10 Nov 2022

    Perrett supports the bill and treats it as part of the long-running effort to protect the ozone layer and act on scientific warnings. He says the issue should be bipartisan and praises the Montreal ProtocolThe international treaty Australia relies on for its ozone controls, and which the bill is presented as supporting. approach that this bill continues.

    “On a day of division, when it comes to legislation about protecting the world's ozone layer, it is a bipartisan story. When it comes to human survival, it's great to see humans—animals that evolved in intelligence in the Darwinian struggle to survive in the jungle—actually come together and use our intelligence for the good of humanity. More importantly, the story of ozone is a story of hope. When it comes to the battles humanity has to go through to save and protect our environment, this is a battle that we have to win.”
    Read this contribution in Hansard ↗

Coalition

4 speakers · 4 support

  1. Henry Pike Henry Pike says the coalition supports the bill and will commend it to the House because it makes sensible administrative changes to ozone and greenhouse gas levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. settings, improves compliance arrangements, and reflects consultation and earlier coalition work.
    “The bills also provide for the removal of caps on the levy rates for the OPSGG program, and the creation of a capacity for the manufacture levy rate to be more flexibly set and adjusted by legislation rather than just through legislation. And we've seen how long it takes to get legislation through this place. I believe this bill has been on and off the Notice Paper many, many times. My speech here is all dogeared given how many times I've pulled it in and out of my folder. The delegation of power to senior departmental officials of the minister to grant exemptions to levy payments and the abolition of the levy applied to the importation of ODS equipment is in recognition of the fact that it is now only possible to bring such equipment into Australia in circumstances where no alternative equipment is available. These are all highly commendable actions, and I commend the bills to the House.”

    Liberal National Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗
  2. David Gillespie Gillespie supports the bill, saying it updates Australia’s import levyThe charge paid on some imports of controlled gases or equipment, used here to help fund the program that regulates them. settings for ozone and synthetic greenhouse gasesIndustrial gases covered by the bill that trap heat in the atmosphere and are regulated through import controls and levies. while making licensing, compliance and reporting rules clearer and less burdensome for business.
    “The take-home message for people in Australia is that we are a proud participant in this process which is keeping the ozone up there in the stratosphere, where we like it, rather than getting it down into the troposphere which is our part of the atmosphere that humans and vegetation interact with. Ozone isn't all bad; it does provide some benefits for sterilising and other chemical processes as long as it doesn't get destroyed by those processes that I've outlined. I commend this bill and the amendments to the House. Thank you.”

    National Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗
  3. James Stevens James Stevens supports the bill and the related package, saying it updates and modernises the ozone and synthetic greenhouse gas framework and reflects a successful bipartisan approach.
    “The issues with ozone depletion were a very important precursor to the challenges that we have with climate change as well. That needs a global response, and other speakers have outlined some of the framework that is already in place and that needs to be in place for the future on that challenge. We strongly endorse these bills. They, of course, emanate from the previous government, and I commend Greg Hunt and the work that he did as the then minister in this area. I know that that's something that is not disputed within the chamber. We know that they will continue to make sure that the legislative framework in meeting these significant challenges is in place, and on that basis I commend the bills to the House.”

    Liberal Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗

Full record

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