Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment

Current status

This bill became law on Dec 13th, 2022.

Policy area

Climate, energy & environment

What does this bill do?

Levy amounts on licensed manufacturers can now be set later by regulations, including by a formula, instead of being locked into the Act for each reporting periodThe time block used to work out levy liability; the new rules apply only to periods that start after commencement..

Why was it introduced?

Caps on manufacture levyA charge on licensed manufacturers, which this bill lets be set later by regulation instead of being fixed in the Act. rates left the Commonwealth unable to fully recover likely costs of running the ozone and synthetic greenhouse gas program. The bill lets levy amounts be set later by regulation within expected program costs, and expands exemptions and delegationThe transfer of the minister's exemption power to senior officials so routine levy decisions do not all need to be made personally by the minister. to make the levy system work more smoothly.

Broader context

After scientists identified the ozone hole over Antarctica in 1985 and countries responded through the 1987 Montreal ProtocolThe international treaty that set the framework for phasing down ozone-depleting gases, which this Australian scheme is meant to support., Australia built an ozone and synthetic greenhouse gas management scheme funded in part by levies on licensed manufacturers. By 2022, capped levy rates were no longer expected to cover the Commonwealth’s program costs, so the bill let levy amounts be set later by regulation within expected costs, added practical exemptions and delegationThe transfer of the minister's exemption power to senior officials so routine levy decisions do not all need to be made personally by the minister. powers, and became law in December 2022.

Key criticism

No significant public case against this bill is recorded so far, with debate instead treating it as a technical update to how manufacturing levies are set and administered. No party represented in the debate opposed the bill, and the available speeches describe the changes as routine, bipartisan and aimed at cost recoveryThe idea that the levies should cover the likely cost of running the program, but not more than those expected costs after fees are taken into account. and lower red tape.

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. Levy amounts on licensed manufacturers can now be set later by regulations, including by a formula, instead of being locked into the Act for each reporting periodThe time block used to work out levy liability; the new rules apply only to periods that start after commencement..

  2. Any new manufacturing levy must stay within likely Commonwealth program costs after taking out costs expected to be covered by separate fees.

  3. Manufacturers can be excused from paying levy when charging it would be impracticable or when the gas is for medical, veterinary, health or safety uses.

  4. The minister can hand the power to grant levy exemptions to authorised officials, instead of making every exemption decision personally.

  5. The new levy rules only apply to reporting periods that start after commencement, so earlier reporting periods stay under the old law.

Show source excerpts
  1. (4) The amount of levy imposed by subsection (1) on a licensee in respect of the manufacture of a substance other than an SGG in a reporting period is the amount prescribed, or worked out in accordance with a method prescribed, by the regulations for the purposes of this subsection.
    Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2022 final Act text
  2. (5) Before the Governor‑General makes regulations for the purposes of subsection (4), the Minister must be satisfied that the effect of this Act and the Import Levy Act will be to recover no more than the Commonwealth’s likely costs of the kind mentioned in paragraph 65D(a), (b), (c) or (ca) of the Management Act.
    Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2022 final Act text
  3. (a) that it would be impracticable to require payment of levy imposed on the manufacture of an SGG that is to be used for a purpose to be prescribed by those regulations; or
    Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2022 final Act text
  4. (10) The Minister may, by writing, delegate the Minister’s power under subsection (7) to:
    Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2022 final Act text
  5. (1) The amendments made by this Schedule apply in relation to reporting periods that start on or after the commencement of this item.
    Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Act 2022 final Act text

Broader context for this bill

After scientists identified the ozone hole over Antarctica in 1985 and countries responded through the 1987 Montreal ProtocolThe international treaty that set the framework for phasing down ozone-depleting gases, which this Australian scheme is meant to support., Australia built an ozone and synthetic greenhouse gas management scheme funded in part by levies on licensed manufacturers. By 2022, capped levy rates were no longer expected to cover the Commonwealth’s program costs, so the bill let levy amounts be set later by regulation within expected costs, added practical exemptions and delegationThe transfer of the minister's exemption power to senior officials so routine levy decisions do not all need to be made personally by the minister. powers, and became law in December 2022.

  1. 1985

    Scientists identify the ozone hole over Antarctica

    Parliamentary speeches on the bill described the 1985 discovery as the moment the danger from ozone-depleting gases became clear and drove later action.

    Hansard ↗
  2. 1987

    Montreal ProtocolThe international treaty that set the framework for phasing down ozone-depleting gases, which this Australian scheme is meant to support. commits countries to phase down ozone-depleting gases

    Speakers tied Australia’s ozone and synthetic greenhouse gas laws to the Montreal ProtocolThe international treaty that set the framework for phasing down ozone-depleting gases, which this Australian scheme is meant to support., which set the international framework for controlling these chemicals.

    Hansard ↗
  3. 28 Sept 2022

    Government says levy caps no longer cover program costs

    In the second reading speech, the minister said the bill was needed because cost recoveryThe idea that the levies should cover the likely cost of running the program, but not more than those expected costs after fees are taken into account. arrangements for the Ozone Protection and Synthetic Greenhouse Gas Management ProgramThe government program that administers the licence and levy system for ozone and synthetic greenhouse gases, and whose running costs the levies are meant to recover. had to remain effective.

    Hansard ↗
  4. 01 Dec 2022

    Parliament passes the bill

    Both houses passed the bill in the same form, clearing the way for levy amounts to be set by regulation for future reporting periods instead of being fixed in the Act.

    Parliamentary timeline ↗
  5. 13 June 2023

    Levy schedule starts with related reform Act

    The substantive levy amendments commenced when Schedule 1 of the related ozone management reform Act commenced, so the new manufacturing levy settings applied from 13 Jun 2023 rather than Royal Assent.

    Federal Register of Legislation ↗

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-GeneralThe formal office that makes the regulations referred to in the bill, acting on ministerial recommendation. gave Royal Assent, turning the bill into an Act.

The main case against this bill

No significant public case against this bill is recorded so far, with debate instead treating it as a technical update to how manufacturing levies are set and administered. No party represented in the debate opposed the bill, and the available speeches describe the changes as routine, bipartisan and aimed at cost recoveryThe idea that the levies should cover the likely cost of running the program, but not more than those expected costs after fees are taken into account. and lower red tape.

No significant public criticism is recorded beyond the bill being an administrative change.

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 because it updates the levy so the ozone and synthetic greenhouse gas program can keep recovering its costs properly.

Read in Hansard ↗
Lead supporting voice Supports

Barnaby Joyce

National Party • MP 30 Nov 2022

Barnaby Joyce समर्थs the bill because he says the ozone treaties were a major environmental success and that the same kind of calibrated, practical approach should be used here.

Read in Hansard ↗
Lead voice Supports

Josh Wilson

Australian Labor Party • MP 30 Nov 2022

Josh Wilson supports the bill and says it finishes overdue ozone and synthetic greenhouse gas reforms that began under the previous government.

Read in Hansard ↗
Lead voice Supports

Steve Georganas

Australian Labor Party • MP 30 Nov 2022

Steve Georganas says Labor supports the bill because it will strengthen the ozone and synthetic greenhouse gas scheme, help meet Australia’s emissions targets, and improve regulation of harmful chemicals.

Read in Hansard ↗

All speeches by bloc

Labor

8 speakers · 10 contributions · 8 support

  1. Susan Templeman Templeman supports the bill and says it will help phase down harmful synthetic greenhouse gasesThe gases covered by this levy scheme; the page treats them as high-impact gases that the law tries to control and phase down., strengthen the program, and keep Australia on track to meet its emissions 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 and says it strengthens the ozone protection scheme by improving levy settings, equipment treatment and enforcement.
    “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 Tony Zappia supports the bill and says it is a critical part of the response to climate change because it updates the law, improves compliance for businesses, and adds needed enforcement measures.
    “In closing, my view is this: the facts are now clear, the risks are clear and indifference to the reality of climate change will create greater devastation in the years ahead. 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 Libby Coker supports the bill and says it will improve the ozone and synthetic greenhouse gas program by strengthening compliance, streamlining licensing, and helping Australia cut emissions.
    “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 Perrett supports the bill and says it will make Australia's ozone and synthetic greenhouse gas program stronger by cutting red tape and improving enforcement.

    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

    Perrett supports the bill and says it will make Australia's ozone and synthetic greenhouse gas program stronger by cutting red tape and improving enforcement. He argues it is practical climate action that protects the environment and human health, and he commends the legislation 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

    Graham Perrett speaks to the bill, focusing on the most astonishing thing—and it's actually sad to say that it's astonishing—is that, when scientists raised the alarm, the world listened. The speech also says that i know—like everyone in the chamber who has come to hear my speech!—we're very pleased to hear the former government speak about the ozone protection and synthetic greenhouse gas bills 2022.

    “The most astonishing thing—and it's actually sad to say that it's astonishing—is that, when scientists raised the alarm, the world listened.”
    Read this contribution in Hansard ↗

Coalition

5 speakers · 5 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 the ozone protection program while reducing red tape for business.
    “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 and says it is a timely update that strengthens Australia’s rules for reducing harmful synthetic greenhouse gasesThe gases covered by this levy scheme; the page treats them as high-impact gases that the law tries to control and phase down. while making the licensing and levy system easier for business to work with.
    “This bill, which updates the laws and regulations regarding our efforts to limit HFCs as well as the existing ban on CFCs, is quite timely. It was introduced on the anniversary date of that protocol being signed up. Australia's action has been quite significant and will continue to contribute to our efforts to improve the emissions reduction target set by the now government for 2030. HFCs should be reduced by about 86 per cent in total by that time.”

    National Party • MP • 30 Nov 2022

    Read the full speech in Hansard ↗
  3. James Stevens James Stevens supports the bill and the broader package, saying it continues a successful bipartisan approach to protecting the ozone layer and should keep the legislative framework in place to meet Australia’s environmental obligations.
    “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 ↗
  4. Ted O'Brien O'Brien says the coalition supports the manufacture levyA charge on licensed manufacturers, which this bill lets be set later by regulation instead of being fixed in the Act. amendment bill because it is part of a bipartisan effort to improve ozone and synthetic greenhouse gas regulation.
    “Then there are two other bills that have come before the parliament bundled together, and they are the import levy bill and the manufacture levy bill. This is all about ensuring that we have improved efficiency in the management and the administration of those two levies, which are used to recover the costs associated with the operation of the program to which I just referred. This includes removing the caps on the levy rates for the program, the creation of a capacity for the manufacture levy rate to be more flexibly set, delegation to senior departmental officials of the power of the minister to grant exemptions to levy payments, and the abolition of the levy applied to the importation of ODS equipment.”

    Liberal Party • MP • 10 Nov 2022

    Read the full speech in Hansard ↗

Full record

Full chat