AICIS Unveils Proposed Fees and Charges for 2024-25: Stakeholder Feedback Sought

In April 2024, the Australian Industrial Chemicals Introduction Scheme (AICIS) released a comprehensive proposal detailing adjustments to fees and charges for the 2024-25 fiscal year. As part of its regulatory mandate, AICIS aims to manage the introduction and manufacture of industrial chemicals in Australia, ensuring the safety and environmental sustainability of these processes. The proposed fees are based on the principles of full cost recovery in accordance with the Australian Government’s Cost Recovery Policy.

Key Proposals for 2024-25

The AICIS fees and charges document outlines significant updates, including adjustments to registration level thresholds and the indexation of fees to more closely reflect inflation and the actual cost of services provided. The changes are expected to streamline operations, improve the fairness of the distribution of the costs among stakeholders, and ensure that the fees collected match the regulatory efforts. The proposed changes to fees and charges are made up of two components:

- Adjustment of Registration Level Thresholds: The proposed changes aim to realign registration charges according to the scale of introductions, thereby facilitating a more equitable distribution of regulatory costs.

- Indexation of Fees: AICIS plans to increase existing service fees by 3.1% to reflect inflationary pressures, particularly in employee wages and supplier costs.

Stakeholder Engagement and Feedback

AICIS has actively engaged with key industry stakeholders including Accord Australasia, the Australian Chamber of Commerce and Industry, and Chemistry Australia. While there is broad support for the initiative to adjust introduction value thresholds, concerns remain about potential fee increases for top-tier registrants.

The AICIS is seeking broader industry feedback through its consultation hub, which runs from 2 April 2024 to 1 May 2024. This feedback will be crucial in shaping the final proposal to be submitted to the government.

Implications for Industry

Companies involved in the industrial chemicals sector will need to closely review the proposed changes, which could impact the cost structure of chemical introductions in Australia. The adjustment of fees and the method of their application reflect AICIS's commitment to maintaining a balanced approach to regulatory cost recovery while promoting a competitive market environment.

Conclusion

The AICIS's proposed fees and charges for 2024-25 reflect its ongoing efforts to align regulatory costs with the services provided. Stakeholders are encouraged to participate in the consultation process to ensure that their views are considered in the final decision. With these changes, AICIS continues to support the safe and responsible introduction of industrial chemicals in Australia, promoting both public health and environmental protection.

For detailed information on the proposed fees and to participate in the consultation, stakeholders can visit the AICIS consultation hub here or contact AICIS directly through its website.