GEMS fee review

The Department of Industry Innovation and Science is conducting a review of the fees charged under the Greenhouse and Energy Minimum Standards (GEMS) Act 2012. Fees are reviewed every three years to facilitate a move towards full cost recovery over time.

The GEMS Act aims to promote the development and adoption of products that use less energy, produce fewer greenhouse gas emissions or contribute to reducing the amount of energy used (or greenhouse gases produced) by other products. The legislation underpins the work in the Australia of the Equipment Energy Efficiency (E3) Program, a joint Commonwealth and state and territory government program.

Importers, manufacturers or suppliers of products that are regulated for energy efficiency under the GEMS Act are required to register their products, for which they are charged a fee. The registration fees collected by the Commonwealth recover part of the costs of providing a product registration service and the compliance monitoring and enforcement program required under the Act. Approval to charge these fees derives from the GEMS (Registration Fees) Act 2012.

The Australian Government’s approval for the program in 2012 was on the basis of phased in cost recovery, with the clear expectation that it would move over time towards the full recovery of costs. The current rate of cost recovery is around 50%. That is, around 50% of the costs of the program are covered by the registration fees collected.

In 2015, an independent review of the GEMS scheme found that, in general, it was operating well and meeting its objectives. The review recommended that the Commonwealth take account of stakeholders’ views in its 2016 review of the fees charged under GEMS.

Stakeholders can play a key role in the GEMS Fees Review by sharing their views. Submissions are welcomed both from individual registrants and industry associations and will be accepted up until COB Friday 15 April 2016. Submissions should be lodged by email, with the subject heading ‘GEMS Fees Review’ to energyrating@industry.gov.au. The review process will be completed by 30 June 2016.