Standing Committee on Chemicals (SCOC) Progress Report – March 2014
As at 14 March 2014, thirteen reforms (3.1, 4.6, 5.1, 5.6, 6.4, 7.1, 7.2, 7.3, 7.4, 8.1, 8.2, 10.3 and
10.4) were completed for Council of Australian Governments (COAG) purposes, or agreed by
COAG that they are completed as far as practical, out of the 30 COAG agreed reforms in response
to the Productivity Commission Research Report: Chemicals and Plastics Regulation, July 2008
(the PC report).
COAG also agreed in April 2012 that a further seven reforms (4.1 - 4.5 and 5.4 - 5.5) would be
progressed through the Better Regulation Ministerial Partnership (BRMP) between the Minister for
Health and the Minister for Finance and Deregulation rather than through the National Partnership
Agreement to Deliver a Seamless National Economy (SNE NP). These reforms, which primarily
relate to the role of National Industrial Chemicals Notification and Assessment Scheme (NICNAS),
will now be progressed by the Australian Government and thus will no longer be reported through
COAG processes. A draft Regulation Impact Statement (RIS) was released on 14 June 2013.
SCOC has agreed to recommend to COAG that it agree reforms 6.1, 6.2 and 6.3 have been
considered and addressed in all jurisdictions despite the wider Work Health and Safety laws not
being adopted in all jurisdictions to date.
The SCOC has been advised by relevant agencies that all 18 ‘Early Harvest Reforms’ (EHR) are
complete or have been included in other reform processes see:
http://www.innovation.gov.au/Industry/ChemicalsandPlastics/SCOC/Documents/EHRReportCardO
ct2012.pdf.
The Standing Committee on Chemicals (SCOC) was created as part of this reform agenda to
coordinate the chemicals and plastics reforms and increase transparency. As per its Memorandum
of Understanding (MoU), the SCOC was reviwed to determine its future beyond its current term,
which is due to cease on 7 December 2014. The review was finalised in late 2013 but has not been
considered by COAG.
At the 13 December 2013 meeting, COAG agreed that its Council system should be streamlined
and refocussed on COAG’s priorities over the next 12–18 months. Standing and Select
Committees responsible for progressing SCOC reforms have been impacted by this decision.
Impacted Standing and Select Councils include the Standing Committee on Environment and
Water (SCEW), the Standing Committee on Primary Industries (SCOPI) and the Select Council on
Workplace Relations (SCWR).
Standing Council on Health (SCoH)
Reforms: 5.2, 5.3
These reforms are concerned with the consistency across jurisdictions of regulatory controls on
scheduled poisons.
Reform 5.2 requires states and territories to adopt poison controls by reference. Decisions relating
to scheduling are already adopted by reference by all states and territories. However, this reform
focuses on improving consistency over adoption of the associated poison controls.
The Decision RIS and implementation plan were considered by the Australian Health Minister’s
Advisory Council (AHMAC) and approved by the Standing Committee on Health on 16 May 2013.
In 2013, the Australian Health Ministers Advisory Council (AHMAC) has instructed an interjurisdictional working group reporting to the Community Care and Population Health Principle
Committee (CCPHPC) of AHMAC be established to implement the Decision RIS.
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The Decision RIS included uniform controls for the storage, disposal, labelling, packaging, record
keeping, advertising and supply of poisons contained in Schedules 5, 6 and 7 of the Standard
Uniform Scheduling of Medicines and Poisons (SUSMP).
The inter-jurisdictional working group will also review the list of poisons in Appendix J of the
SUSMP related to the conditions of availability and use of Schedule 7 poisons.
Proposed changes to the SUSMP are scheduled to be submitted to the AHMAC in December
2013.
Work on reform 5.3 is ongoing. This reform involves exempting users from poison controls where
the poison is adequately covered under model Work Health and Safety (WHS) Regulations and
there is a demonstrated compliance. Poisons currently utilised solely for industrial use are exempt
from labelling requirements of the Standard for Uniform Scheduling of Drugs and Poisons
(SUSMP).
Select Council on Workplace Relations (SCWR)
Reforms: 6.1, 6.2, 6.3
These reforms are concerned with consistency and overall effectiveness of the regulation of
chemicals and plastics in the workplace.
Reforms 6.1, 6.2 and 6.3 have been progressed as part of the broader reforms involving
harmonisation of Work Health and Safety (WHS) laws comprising a model WHS Act, supported by
model WHS regulations and model codes of practice, and complemented by a nationally consistent
approach to compliance and enforcement policy.
Model WHS laws are in effect in the Commonwealth, Australian Capital Territory,
New South Wales, the Northern Territory, Queensland, Tasmania and South Australia. Of the
remaining two jurisdictions: WA has advised that it is still considering whether to implement the
model WHS laws; and Victoria has advised it will not introduce the model laws in their current form.
The framework for Major Hazard Facilities (reform 6.1) has been reviewed in line with COAG and
OBPR requirements, which is consistent with the COAG response to the PC report. The revised
framework has been incorporated as part of model WHS law. Major hazard facilities, which
comprise Chapter 9 in the model WHS regulations were not enacted with the ACT Work Health
and Safety Regulations. It is expected they will be adopted under Chapter 9 of the WHS
regulations in 2014. With respect to workplace chemicals (reforms 6.2 and 6.3), the approach
taken in the model regulations involves the consolidation of existing requirements for workplace
hazardous substances and dangerous goods into a single framework, and the implementation of
the Globally Harmonised System of Classification and Labelling of Chemicals (GHS) as the
primary tool for classification, labelling and safety data sheets for workplace chemicals. The
assessment of the costs and benefits of these regulatory changes (i.e. reforms 6.2 and 6.3 –
including the requirement for agricultural and veterinary chemical products that are workplace
chemicals to include GHS information on the label) was assessed in a 2010 regulatory impact
assessment. This assessment found an overall net benefit for the adoption of the new framework.
Completion of the assessment is consistent with the COAG response to the PC report. The
regulatory change has been incorporated as part of model WHS laws. All jurisdictions have agreed
in principle to the 1 January 2017 start date for mandatory GHS labelling for new and existing
chemicals.
The agreed COAG implementation plan for this work of the SCWR stated that the final milestone
for reforms 6.2 and 6.3 will be achieved when model WHS laws have been adopted into legislation
in all states and territories. While the model laws have not been passed in Victoria and Western
Australia, GHS labelling is currently recognised optionally in all jurisdictions, even those that have
not yet passed the model WHS laws. Chapter 7 of the model WHS regulations that covers
Hazardous Chemicals (including the adoption of GHS) were not enacted under the ACT Work
Health and Safety laws. The ACT currently accepts GHS classification and labelling under its
Dangerous Substances Act 2004 and relevant subordinate laws, due to incorporation under the
ADG Code. Chapter 7 (Hazardous Chemicals) of the national model Work Health and Safety
Regulations have yet to be adopted in the ACT. It is now expected they will be adopted under the
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Work Health and Safety legislation, with anticipated legislation for this purpose to be introduced in
2014. Victoria and Western Australia will need to pass legislation to make GHS labelling for
workplace chemicals mandatory.
SCOC agreed on 15 March 2013 to recommend to COAG that it agree reforms 6.1, 6.2 and 6.3
have been completed consistent with COAG requirements despite the Work Health and Safety
laws having not yet been adopted in WA and VIC.
Standing Council on Transport and Infrastructure (SCOTI)
All reforms relating to transport safety are now considered complete for COAG purposes. For more
information on the Dangerous Goods Code see the National Transport Commission website:
www.ntc.gov.au.
Standing Council on Primary Industries (SCoPI)
All reforms relating to the regulation of agriculture and veterinary chemicals products are now
considered complete for COAG purposes. The status of implementation of the Agricultural and
Veterinary Chemicals Legislation Amendment Act 2013 can be found in the Addendum attached to
this report. For more information on the Better Regulation of Agricultural and Veterinary Chemicals
see the Department of Agriculture website: www.daff.gov.au/agriculture-food/ag-vetchemicals/better-regulation-of-ag-vet-chemicals
Standing Council on Environment and Water (SCEW)
Reforms: 9.1, 9.2, 9.3
These reforms relate to the management of environmental risks posed by industrial chemicals. The
current focus is on reform 9.2 establishing a standard-setting body to manage the environmental
risks of industrial chemicals.
In response to stakeholder feedback on the Consultation Regulatory Impact Statement Management of Chemical Environmental Risks released in April 2013, a number of refinements to
the options have been developed. The principal area of refinement responds to stakeholder
preference for a regulatory regime that is simple, transparent and is as cost-effective as possible.
The next stage is to consider the consultation outcomes and prepare a Decision RIS for
Environment Ministers’ consideration in the second half of 2014. This will include scoping work on
the cost-benefit analysis to accompany the Decision RIS based on the ‘refined’ three options, as
well as undertaking consultation with key stakeholders.
Attorney-General’s Department (AGD)
Reforms: 10.1, 10.2, 10.4
Reforms 10.1 and 10.2 relate to more consistent harmonisation of regulations surrounding security
sensitive ammonium nitrate (SSAN). These reforms remain outstanding as parts of reforms 10.1
and 10.2 and have not been consistently implemented.
The Business Regulation and Competition Working Group’s (BRCWG) recommendation that AGD
be tasked with considering an appropriate way forward for progressing PC reforms 10.1 and 10.2
in relation to SSAN is reflected in the December 2011 recommendations of the COAG Reform
Council (CRC). The BRCWG requested AGD to lead progress on SSAN reforms and an
implementation plan has been agreed by the National Government Advisory Group (NGAG) on
chemical security. The implementation plan was agreed by COAG at its December 2012 meeting.
Under the plan, NGAG retains policy responsibility for the SSAN reforms.
Based on currently available evidence (classified and unclassified) and views of the Risk
Management Working Group (RMWG) on SSAN, in October 2013 NGAG agreed that regulation
remains the most appropriate approach to controlling the national security risks posed by SSAN.
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Further consideration is to be given to the regulation of ammonium nitrate-based instant cold packs
and the current exemption for amounts less of than 3 kilograms for certain laboratories.
Harmonisation continues to be a main focus, including the establishment of a single national
background checking system. The meeting of the RMWG previously scheduled for February 2014
has been postponed to April 2014.
AGD notes the explosives reforms being led by Safe Work Australia (SWA) and continues to
collaborate with SWA to progress common issues across the two reforms.
Reform 10.4 is the establishment of the Chemical Security Management Framework (CSMF) and
the re-examination of the controls on SSAN. The CSMF reflects an agreed approach to limiting
opportunities for the use of chemicals by terrorists to harm the Australian community, industry and
infrastructure. AGD’s work under PC reform 10.4 in applying the framework to 96 chemicals of
security concern, including ongoing risk assessment and management of security risks is ongoing.
The risk assessment for SSAN has been completed.
Implementation and promotion of the voluntary National Code of Practice for Chemicals of Security
Concern is ongoing. The focus of AGD and NGAG’s work has shifted to development and
dissemination of training materials and guidance for specific industry sectors.
AGD is on track to assess and treat the risks posed by the 96 chemicals of security concern under
the CSMF by June 2015. Risk assessment reports for the final 41 toxic chemicals are on track to
be completed in 2014. In February 2014 AGD approached the market for consultancy services to
deliver a Regulation Impact Statement which will explore risk controls for the remaining 84
chemicals of security concern (excluding SSAN). SCOC considers that reform 10.4 is complete
with operational components of the reform continuing until 2015.
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ADDENDUM
Progress on Productivity Commission reforms - Implementation of reforms considered
complete by COAG
Standing Council on Health (SCOH)
Reform: 4.6
Work on this reform continues under the Inventory Multi-tiered Assessment and Prioritisation
(IMAP) system by NICNAS, see http://www.nicnas.gov.au/chemical-information/imapassessments.
Reform 5.1
A review of the poisons and medicines scheduling arrangements commenced in March 2013 and
12 submissions were received and published on the Department of Health website. The review is
now complete and is awaiting the Minister of Health to table it in Parliament.
More information is available here:
http://www.health.gov.au/internet/main/publishing.nsf/Content/ohp-substances-review.htm
Standing Council on Primary Industries (SCoPI)
Reforms: 8.1, 8.2
The states and territories are now responsible for implementing the necessary changes to their
legislation. Due to the different regulatory arrangements within each jurisdiction, harmonisation
may best be achieved through consistent and uniform drafting instructions for amending existing
legislation and regulations. The Agvet Chemical Regulation Committee (ACRC) will oversee the
implementation of agvet chemical reforms, control of use regulation and identify areas for future
reform. ACRC working groups will implement the models, with identified lead jurisdictions to report
back to the ACRC. The ACRC will also assist the APVMA and states and territories in developing
strategic policy for the entire agvet chemicals regulatory system.
The 30 January ACRC meeting included consideration and agreement of the terms of reference for
the working groups responsible for implementing the reforms.
The responsibility for implementing the Act’s reform measures rests principally with the APVMA.
The APVMA is progressively publishing its guidelines on how it assesses risk and makes
registration decisions on its website, which stakeholders are encouraged to review and comment
on, via APVMA’s regular communication channels.
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