The Australian Government recovers the cost of delivering emissions standards from the regulated sector.
Cost recovery arrangements for the standards consist of fees and a levy designed in accordance with the Australian Government Charging Framework and Cost Recovery Guidelines.
Annual levy
A levy is paid by importers and local manufacturers who introduce new outdoor power equipment and marine engines to Australia.
Paying the levy
The levy is paid annually, due 30 November in the following financial year.
When importers have imported more than $44,000 of products in a financial year the department will notify them of their obligation to pay the levy.
After the end of the financial year, importers will be sent a notice of levy liability. The notice provides an opportunity for importers to review their import data before a levy invoice is issued.
The invoice is issued after the finalised amount is calculated on 1 October. Payment of the invoice is due 30 November (e.g., levy for the 2021-22 import period is payable 30 November 2022).
Levy calculation
The levy is charged at 0.33% of the value of products manufactured or imported.
This includes certified products that meet the standards and products imported under an exemption. Local manufacture means the manufacture of engines and does not include the assembly of imported engines into equipment.
Example: levy rate
Levy rate: 0.33% of the value of products manufactured or imported.
If a manufacturer manufactures $50,000 worth of products over one financial year, the manufacture levy liability would be $165, i.e. 0.33% of $50,000.
The levy is only payable if the value of products manufactured or imported in a financial year is more than the low-levy threshold of $44,000.
Example: low levy threshold
Threshold: $44,000 worth of products imported in one financial year.
- If a manufacturer manufactures $50,000 worth of products over one financial year, the manufacture levy liability would be $165, i.e. 0.33% of $50,000.
- The levy is only payable if the value of products manufactured or imported in a financial year is more than the low-levy threshold of $44,000.
The high-value item threshold caps the amount of levy that can be charged per product. With a high value threshold of $10,000, no more than $33 is payable for the manufacture or import of any one item, even if the total value of the item is more than $10,000.
Example: high-value item threshold
Threshold: $10,000 per item.
- If an importer imports six products each worth $20,000, only $10,000 from the value for each product would be levied so the total levy would be $198, i.e. 0.33% of $60,000 (6 units at $10,000).
- If an importer imports one $60,000 product (including the engine) over one financial year, only $10,000 of its value is used to calculate the levy liability. As $10,000 is under the low levy threshold of $44,000, the importer would not need to pay a levy.
Application fees
Application fees for exemption and certification are paid by the individual or organisation making the application.
An invoice will be issued after an application has been submitted through the department’s Online Services portal. The department will assess the application once the fee is paid in full.
The prescribed application fees for Australian certification and exemptions are as follows:
| Item | Application | Fees ($) |
|---|---|---|
|
1 |
an application for which the relevant emissions testing was carried out at a test facility that was accredited as mentioned in paragraph 13(1)(a) |
1,330 |
|
2 |
any other application |
2,850 |
| Item | Application | Fees ($) |
|---|---|---|
|
Item |
Exemption category |
Fees ($) |
|
1 |
Paragraph 30(1)(a) |
1,470 |
|
2 |
Paragraph 30(1)(b) |
390 |
|
3 |
Paragraph 30(1)(c) |
550 |
|
4 |
Paragraph 30(1)(d) |
1,470 |
|
5 |
Paragraph 30(1)(e) |
1,470 |
|
6 |
Paragraph 30(1)(f) |
1,470 |
Cost recovery implementation statement
The cost recovery implementation statement (CRIS) provides information on how the department implements cost recovery for regulating emissions from non-road spark-ignition engines and equipment and marine engines.
The department regularly reviews and maintains the CRIS while cost recovery arrangements are in place.
Current statement
The cost recovery arrangements were reviewed in 2021 to ensure the continued financial sustainability of the scheme. Changes to the levy settings will take effect for the 2021-22 period, reducing the levy rate from 0.45% to 0.33% and the high-value item threshold from $20,000 to $10,000.
A draft 2021-22 CRIS was released for public consultation through our Have Your Say platform between 24 September 2021 and 25 October 2021. The department invited feedback on the proposed CRIS from stakeholders and industry groups. The Minister considered this feedback in making the decision on the final 2021-22 CRIS. A summary of stakeholder feedback is included in the final CRIS. Further detail on stakeholder feedback received in consultation and how the department addressed these issues has been published (excluding submissions identified as confidential).
2021-22 CRIS:
- Cost Recovery Implementation Statement: regulating emissions from non-road engines and propulsion marine engines 2021-22
- Cost Recovery Implementation Statement: 2021-22 consultation summary
Previous statements
Cost recovery arrangements for the standards were established under the 2017-18 CRIS. Application fees for Australian certification and exemption from the standards commenced 11 January 2018. Levies commenced 1 July 2018 for the 2018-19 period.
2017-18 CRIS: