2006

LEGISLATIVE ASSEMBLY OF THE
NORTHERN TERRITORY

TREASURER

MOTOR VEHICLES AMENDMENT BILL 2006
SERIAL NO. 

EXPLANATORY STATEMENT

GENERAL OUTLINE

Currently, Part V of the Motor Vehicles Act requires the Minister responsible for the Territory Insurance Office (currently the Treasurer) to determine contribution amounts for the Motor Accidents (Compensation) Act (MACA) scheme.  The Minister is to consider the advice of the Territory Insurance Office Board in making such determinations.

The proposed Bill provides for the appointment of an independent Compensation Contributions Commissioner, with statutory responsibility for determining MACA contribution amounts.

The Commissioner will be required to consult with the Minister and to consider the recommendations of the Territory Insurance Office prior to finalizing a determination.

The Commissioner is to make determinations in accordance with prescribed prudential and affordability standards, which are to be established in regulation.  

NOTES ON CLAUSES

Clause 1.	Short Title

This is a formal clause which provides for the citation of the Bill.  The Bill when passed may be cited as the Motor Vehicles Amendment Act 2005.

Clause 2.	Commencement

This clause provides that the Bill is to commence on the date fixed by the Administrator by notice in the Gazette.

Clause 3.	Principal Act amended

This clause provides that the Motor Vehicles Act is amended by this Bill.

Clause 4.	Repeal and Substitution of section 44

This clause amends repeals section 44 and replaces with the provisions of the Bill.
Clause 44.	Definitions
The clause defines the terms:
·	“Commissioner” as the person occupying the position of Compensation Contributions Commissioner;

·	“Minister” as the Minster administering the Territory Insurance Office Act; and

Clause 5.	Repeal and substitution of section 47

This clause amends repeals section 47 and replaces it with the provisions of the Bill.

Clause 47.	Notice specifying compensation contributions

This clause confers authority on the Compensation Contributions Commissioner to determine MACA contributions, by Gazette, for a range of motor vehicle permits, licenses and registration.  These include the grant or renewal of registration of a motor vehicle or pastoral vehicle permit, an exemption from registration for a visiting motor vehicle, the issuing of a traders plate or temporary license and for the registration of a vehicle under the Commonwealth Interstate Road Transport Act 1985.

Clause 47A.	Parameters for compensation contributions

This clause provides for the prudential and affordability parameters for the Commissioner’s determinations to be prescribed by regulation.

Clause 47B.	Determining compensation contributions

Sub-clause (1) requires the Commissioner to obtain the recommendation of the Territory Insurance Office on contribution amounts prior to making a final determination.

Sub-clause (2) requires the Territory Insurance Office to make its recommendation in accordance with the parameters established in the regulations and to provide the Commissioner with the details of its recommendations and supporting material.

Sub-clause (3) requires the Commissioner to explicitly consider the recommendations of the Territory Insurance Office, the supporting material provided by the Office and the parameters established in the regulations.

Sub-clause (4) directs the Commissioner to notify, in writing, the Minister and the Office of its proposed determination prior to finalization.  The notice is to include the details of the basis for the determination and the reasons for any variations from the Office’s recommendations.  The notice is to also invite comment on the proposed determination and the timeframe for the receipt of comments.

Sub-clause (5) requires the Commissioner to consider the comments raised in the notification in making a final determination.

Clause 47C.	Review by Commissioner

Sub-clause (1) allows the Minister to direct the Commissioner to undertake a review of an issue relating to the MACA scheme at any time.

Sub-clause (2) requires the Commissioner to comply with the Minister’s direction.

Sub-clause (3) prescribes the matters that may be subject to a review by the Commissioner, including a benefit amount, the design of the scheme or the structure of contribution amounts.

Clause 6.	New Part V, Division 3

This clause inserts Division 3 after section 49 of Part V.

Clause 49A.	Appointment

Sub-clause (1) provides for the appointment of the Compensation Contributions Commissioner by the Minister.

Sub-clause (2) makes a person who is a Chief Executive Officer, or an employee of the public service, ineligible to be appointed as the Commissioner.

Clause 49B.	Terms and conditions

This clause determines that the Commissioner is appointed under terms and conditions determined by the Minister.

Clause 49C.	Resignation

This clause requires the Commissioner to provide written notice to the Minister on resignation.