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Generally GEMS products need to be registered prior to being offered for supply in Australia. For customised products, it is not confirmed at that point the customer will proceed with the purchase or that the model will actually be manufactured.

The new arrangements would mean that eligible customised products would only be required to be registered when they are supplied.

The new arrangements will not come into effect immediately upon the GEMS Act being amended. Following the GEMS Act amendments, the GEMS Regulator will consult with affected stakeholders before prescribing, by legislative instrument, which GEMS products will be eligible to use the new registration arrangements for customised products. The GEMS Regulator will update the list of eligible products in the legislative instrument as needed.

The new registration arrangements are not intended for large volume consumer products. Eligibility will be available only to products within the scope of particular GEMS determinations. As some GEMS determinations cover both large volume standardised products as well as bespoke products, the arrangements may be limited to just some products covered by a determination.

The amendments will introduce options for the GEMS Regulator to allow greater flexibility for suppliers demonstrating compliance with GEMS determinations. This is referred to as deemed compliance in the proposed amendments.

GEMS determinations set out the requirements products need to meet including testing methods to demonstrate they comply with the requirements. Testing methods are often harmonised with overseas standards and may become out of date as other countries update their standards. This can mean that suppliers may need to conduct additional testing specifically for the Australian market, with costs flowing on to consumers. Or in some situations limiting the import of the newest technologies to Australia.

This new flexibility in the Act would allow the GEMS Regulator to declare equivalent or updated standards as approved alternatives to test methods referenced in GEMS determinations.

It is expected that suppliers, or industry bodies, would submit information to the GEMS Regulator if they consider an alternative standard should be considered for approval.

Deemed compliance changes will reduce the need for suppliers to seek exemptions from requirements and ensure that the application of these allowances are available to suppliers equally.

The changes will allow for exemptions to be more targeted. Should a supplier be unable to meet one aspect of a requirement, for example a particular aspect of how testing is conducted, they could apply to be exempt from only that aspect of the requirement. An example of this could be where during testing of a dishwasher an alternate/equivalent detergent is able to be used when testing in accordance with the Standard. Currently the only exemption option available to the GEMS Regulator if the mandated test detergent is unavailable is to exempt the model from the GEMS Labelling requirement altogether.  As a result, the manufacturer would be unable to display an Energy Rating Label and there would be a negative impact to consumer choice due to reduced information at the point of sale.

The changes will also clarify that the GEMS Regulator can grant exemptions during the transition to new requirements. Generally there is a period between when a GEMS determination is made by the Minister and when its requirements become mandatory. During this time suppliers can choose to register products to the new determination. The changes will provide certainty for suppliers who may need to seek an exemption during a transition period.

It’s important to note that the changes in relation to exemptions won’t impact the process for suppliers applying for an exemption.

The range of products covered by a GEMS determination is set by defining product classes. It can be difficult to harmonise the scope of GEMS determinations with international and overseas standards due to constraints on what can constitute a product class. The amendments are intended to introduce more flexibility into how classes of products can be defined. This will help to enable better alignment when international or overseas standards are adopted within a GEMS determination.

This added flexibility will also assist in preventing double regulation by excluding products from the scope of a GEMS determinations if they are already covered by another GEMS regulation. This would only be considered when there would be no adverse impact on energy efficiency outcomes and it would reduce regulatory burden for suppliers. An example is where a product, such as a motor, can be sold as a standalone unit or as a component of a larger piece of equipment. If the latter is covered by a GEMS determination there may be no need for the component to also meet a second set of GEMS requirements. 

The Minister will be able to utilise this flexibility when developing new or updated GEMS determinations. These would be considered on a case-by-case basis through regulatory impact assessment processes including full consultation with affected stakeholders.

Along with minimum energy performance standards (GEMS level requirements) and labelling requirements, a GEMS determination may also include “other requirements”. These requirements assist to ensure that products regulated under the Act do not sacrifice expected performance of a product (a washing machine is efficient but also still washes your clothes), or impose human health or environmental costs. They can also be used to set high efficiency levels to help distinguish the most efficient products.

Other requirements cannot stand alone in a GEMS determination. Currently only GEMS determinations that set minimum energy performance standards can include other requirements relating to product performance or their human health or environmental impacts. The amendment will allow these other requirements to also be made under GEMS determinations which set labelling requirements but do not set minimum standards for energy use.

This would avoid the need to impose minimum standards when labelling requirements supported by 'other requirements' would achieve the same outcome with lower compliance costs for business.

These changes are intended to improve efficiency and effectiveness when administering the Act and will not have direct impact on business. These changes are being made to ensure that the basis on which the Act is administered is reflective of the current environment and expectations for Australian legislation some ten years since the Act was drafted.

The proposed changes to the Act are part of a broader package of amendments across Commonwealth legislation that aim to support best practice regulator performance. This is part of the Australian Government’s program of work under the Deregulation Agenda which is focussed on maintaining Australia’s essential safeguards while reducing the regulatory compliance burden, to support business investment and jobs growth.