As at 12 April 2020, 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 under the BRMP 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
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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 is currently under review to determine its future beyond its current term, which is due to cease on 7 December 2014. The review will be finalised in late 2013.
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 control.
The Office of Best Practice Regulation (OBPR) approved a Consultation Regulation Impact
Statement (RIS) on 6 June 2012. After a 4 week consultation period a decision RIS and implementation plan have been drafted. Further consultation was scheduled between
Commonwealth and State jurisdictions in January 2013. 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 in May 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).
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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.
Harmonised 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 under the ACT Work Health and Safety Regulations. They will continue to be regulated under the Dangerous Substances Act
2004 which is due to be amended to implement Chapter 9 reforms in the ACT Legislative
Assembly spring sittings of 2013.
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 states 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. They will continue to be regulated under the Dangerous Substances Act
2004 which is expected to be amended in the ACT Legislative Assembly spring sittings of 2013 to reflect Chapter 7 of the model WHS regulations. 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 considered and addressed 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
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Standing Council on Primary Industries (SCoPI)
Reforms: 8.1, 8.2
In 2008, COAG requested that the then Primary Industries Ministerial Council (PIMC), now
Standing Council on Primary Industries (SCoPI), submit a detailed regulatory model, supported by a Decision Regulation Impact Statement (RIS) for a single national framework for assessment, registration and control of use of agricultural chemicals and veterinary medicines (agvet chemicals). COAG also requested that this be delivered with a funding model and intergovernmental agreement (IGA).
In October 2012, SCoPI endorsed the regulatory model, funding model and amended IGA. COAG considered the reform package in December 2012 and noted that it would be finalised by SCoPI. In
May 2013, SCoPI confirmed the regulatory model and funding model for the reforms and most jurisdictions signed the intergovernmental agreement. The IGA has since been signed by the remaining jurisdictions and the decision RIS was published in May 2013. SCoPI’s agreement means the reforms are complete as per the COAG agreement.
Complementary elements of these reforms were progressed as part of the Better Regulation
Ministerial Partnership (BRMP) for Agricultural and Veterinary Chemicals. Enabling legislation, the
Agricultural and Veterinary Chemicals Legislation Amendment Act 2013, was passed in June 2013 and will commence on 1 July 2014. Amendments made by the Act reform the approval, registration and review of agvet chemicals to better protect human, animal and environmental health and safety, improve the efficiency and effectiveness of the current regulatory arrangements (for the regulator, the Australian Pesticides and Veterinary Medicines Authority (APVMA)) and provide greater certainty to the community that chemicals approved for use in Australia are safe.
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. An integrated implementation plan was agreed by COAG in April 2012 for Productivity Commission reforms 9.1 (mandatory environmental labelling of chemicals), 9.2 (establishing a standard-setting body to manage the environmental risks of industrial chemicals) and 9.3 (performance measurement framework for monitoring the impact of chemicals on the environment). A
Consultation RIS on options for developing and implementing nationally consistent risk management standards to manage the environmental risks of industrial chemicals was released and consultations concluded on the 28 June 2013. The feedback received was generally positive, with no stakeholders opposed to the reforms. The next stage is to consider the consultation outcomes and prepare a Decision RIS for SCEW consideration in the second half of 2014.
Resourcing for a new standard setting body and jurisdictional implementation have been identified as potential risks in implementing this reform.
The draft Options for reforming the National Industrial Chemicals Notification and Assessment
Scheme (NICNAS) Regulation Impact Statement proposes possible amendments to the Industrial
Chemicals (Notification and Assessment) Act 1989 which would impact on the proposed environmental reforms. The proposed changes to NICNAS do not, however, remove the need for a collaborative arrangement between states, territories and the Commonwealth to determine and implement risk management actions for chemicals in the environment. SCEW will monitor progress on the NICNAS reforms to ensure they integrate with the environmental reforms 9.1, 9.2 and 9.3 already agreed by COAG.
AttorneyGeneral’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.
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BRCWG’s 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.
In 2013 AGD has established a joint government/industry Risk Management Working Group for
SSAN (RMWG) to consider the issues and recommend reforms, as needed, to NGAG. NGAG retains overall policy responsibility for SSAN regulatory reforms, and will report progress to COAG through the Business Advisory Forum (BAF) Taskforce. The RMWG is due to meet for the first time in late 2013.
Reform 10.4 is the establishment of the Chemical Security Management Framework (CSMF) and the re-examination of the controls on SSAN. The framework 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.
On 25 July 2013 the voluntary National Code of Practice for Chemicals of Security Concern was launched following extensive consultation and collaboration with state and territory governments, industry and the community. The code is the primary risk control mechanism to be delivered under the CSMF. It initially applies to any business in the supply chain that handles, manages or stores any of the 11 high-risk chemical precursors to homemade explosives. The voluntary code calls on businesses to self-assess risk and offers suggested strategies to reduce the risk of terrorists acquiring chemicals.
AGD is on track to assess and treat the risks posed by the 96 chemicals of security concern under the CSMF by June 2015. The SCOC considers that this reform 10.4 is complete with operational components of the reform continuing until 2015.
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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
The review of the Medicines and Poisons Scheduling Arrangements implemented in 2010 that is required under this reform is being progressed by the Australian Government Department of Health and Ageing. 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. This is expected to take approximately 18-24 months. 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 18 July 2013 ACRC meeting included an update on reform, discussed the review and considered the need for amendments to relevant state and territory agvet chemicals legislation and subordinate laws, to ensure the validity of APVMA instruments under these laws.
The responsibility for implement ing 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 AP VMA’s regular communication channels.
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