This Act authorises the imposition of charges on narcotic‑drug licences and on matters that relate to those licences. Licence holders are required to pay the charges (s7).
The regulations determine which periods and matters are charged, and how amounts are calculated, with variation allowed by licence class or activity; the Governor‑General makes those regulations (ss6,8,9). Charges are limited so they are not customs or excise under s55 (s6(5)). The measure creates compliance costs for licence holders and gives pricing and scope discretion to regulators.
This Act creates a statutory power to impose licence‑related charges on licences issued under the Narcotic Drugs Act 1967 by delegating the essential particulars of those charges to regulation. Mechanically the Act does four things.
It defines the short title (s 1) and sets out commencement mechanics including a table specifying which provisions commenced on Royal Assent and which commenced at a later linked event (s 2(1)). The table is part of the enacted instrument as originally made, but the Act expressly treats the information in column 3 of that table as not part of the Act (s 2(2)). The table shows the relevant dates as 23 November 2016 for the entries recorded in column 3 of the original enactment.
It provides two short definitions, "charge" and "licence" (s 3). "Licence" is defined by reference to the Narcotic Drugs Act 1967, so the scope of what can be charged is anchored to the license categories in that Act (s 3).
It imposes a statutory charge on licences in force during specified periods and on prescribed matters that relate to licences, but it leaves the detailed content of which periods, which matters, and how the charges are calculated to regulations (s 6(1)-(4)). The Act also contains a constitutional constraint that a charge imposed under s 6(3) only applies to the extent it is not a customs or excise duty within the meaning of section 55 of the Constitution (s 6(5)).
It specifies who is payably liable , the holder of the licence (s 7) , and provides that the amount of a charge is whatever the regulations prescribe or whatever is worked out according to a method prescribed by the regulations (s 8(1)-(2)); the definition of "amount" expressly includes a nil amount (s 8(3)). The Governor‑General is empowered to make the necessary regulations (s 9).
Current sections
Direct links to the current provisions in Narcotic Drugs (Licence Charges) Act 2016.
9
1
Short title
1 Short title
This Act is the Narcotic Drugs (Licence Charges) Act 2016.
2
Commencement
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
<table cellspacing="0" cellpadding="0" style="width:355.55pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:344.85pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement information</span></p></td></tr><tr><td style="width:74.35pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p></td><td style="width:180.7pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p></td><td style="width:68.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 3</span></p></td></tr><tr><td style="width:74.35pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Provisions</span></p></td><td style="width:180.7pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement</span></p></td><td style="width:68.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Date/Details</span></p></td></tr></thead><tbody><tr><td style="width:74.35pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1.</span><span> </span><span>Sections</span><span> </span><span>1 and 2 and anything in this Act not elsewhere covered by this table</span></p></td><td style="width:180.7pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The day this Act receives the Royal Assent.</span></p></td><td style="width:68.4pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>23</span><span> </span><span>November 2016</span></p></td></tr><tr><td style="width:74.35pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2.</span><span> </span><span>Sections</span><span> </span><span>3 to 9</span></p></td><td style="width:180.7pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The later of:</span></p><p class="Tablea"><span>(a) immediately after the commencement of Schedule</span><span> </span><span>1 to the </span><span style="font-style:italic">Narcotic Drugs Amendment Act 2016</span><span>; and</span></p><p class="Tablea"><span>(b) the start of the day this Act receives the Royal Assent.</span></p></td><td style="width:68.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>23</span><span> </span><span>November 2016</span></p><p class="Tabletext"><span>(paragraph</span><span> </span><span>(b) applies)</span></p></td></tr></tbody></table>
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3
Definitions
3 Definitions
In this Act:
charge means charge imposed by this Act.
licence means a licence granted under the Narcotic Drugs Act 1967.
4
Crown to be bound
4 Crown to be bound
This Act binds the Crown in each of its capacities. However, it does not bind the Crown in right of the Commonwealth.
5
Extension to external Territories
5 Extension to external Territories
This Act extends to every external Territory.
6
Imposition of charges
6 Imposition of charges
Charge on a licence
(1) Charge is imposed on a licence that is in force at whichever of the following times is applicable:
(a) any time during a financial year;
(b) any time during such other period as is prescribed by the regulations.
(2) Without limiting subsection (1), the regulations may prescribe different periods in relation to the following:
(a) different classes of licence;
(b) licences of the same class that authorise different activities.
Charge on matters that relate to a licence
(3) Charge is imposed on each matter prescribed by the regulations, being a matter that relates to a licence that is in force.
(4) Without limiting subsection (3), the regulations may prescribe different matters in relation to the following:
(a) different classes of licence;
(b) licences of the same class that authorise different activities.
(5) Subsection (3) imposes a charge only so far as that charge is neither a duty of customs nor a duty of excise within the meaning of section 55 of the Constitution.
7
By whom charges payable
7 By whom charges payable
Charge is payable by the holder of the licence.
8
Amounts of charges
8 Amounts of charges
(1) The amount of a charge is the amount prescribed by, or worked out in accordance with a method prescribed by, the regulations.
(2) Without limiting subsection (1), the regulations may prescribe different amounts of, or prescribe different methods of working out amounts of, charge in relation to the following:
(a) different classes of licence;
(b) licences of the same class that authorise different activities.
(3) In this section:
amount includes a nil amount.
9
Regulations
9 Regulations
The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Source text
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
1 Short title
1 Short title
This Act is the Narcotic Drugs (Licence Charges) Act 2016.
2 Commencement
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
<table cellspacing="0" cellpadding="0" style="width:355.55pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:344.85pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement information</span></p></td></tr><tr><td style="width:74.35pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 1</span></p></td><td style="width:180.7pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 2</span></p></td><td style="width:68.4pt; border-top:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Column 3</span></p></td></tr><tr><td style="width:74.35pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Provisions</span></p></td><td style="width:180.7pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Commencement</span></p></td><td style="width:68.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="TableHeading"><span>Date/Details</span></p></td></tr></thead><tbody><tr><td style="width:74.35pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>1.</span><span> </span><span>Sections</span><span> </span><span>1 and 2 and anything in this Act not elsewhere covered by this table</span></p></td><td style="width:180.7pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The day this Act receives the Royal Assent.</span></p></td><td style="width:68.4pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>23</span><span> </span><span>November 2016</span></p></td></tr><tr><td style="width:74.35pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>2.</span><span> </span><span>Sections</span><span> </span><span>3 to 9</span></p></td><td style="width:180.7pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>The later of:</span></p><p class="Tablea"><span>(a) immediately after the commencement of Schedule</span><span> </span><span>1 to the </span><span style="font-style:italic">Narcotic Drugs Amendment Act 2016</span><span>; and</span></p><p class="Tablea"><span>(b) the start of the day this Act receives the Royal Assent.</span></p></td><td style="width:68.4pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.35pt; padding-left:5.35pt; vertical-align:top"><p class="Tabletext"><span>23</span><span> </span><span>November 2016</span></p><p class="Tabletext"><span>(paragraph</span><span> </span><span>(b) applies)</span></p></td></tr></tbody></table>
In short, the Act establishes a statutory framework authorising charges on narcotic‑drugs licences and matters relating to those licences, but leaves the substantive thresholds, periodicity, categories, charge amounts and calculation methods to subordinate legislation. The Act binds the Crown in each of its capacities but expressly does not bind the Crown in right of the Commonwealth (s 4). The Act also extends to every external Territory (s 5). The Act does not itself set out forms of collection, enforcement or penalty; those operational details are delegated to the regulations (s 9).
Main concepts
The Act rests on a small set of core concepts and delegations. Every assertion below is taken directly from the Act text.
Charge: Defined only by reference to the Act itself as "charge means charge imposed by this Act" (s 3). The Act does not define charge as a fee, tax, levy or otherwise; it simply designates an imposition under the Act as a "charge". The legal character of the charge in other areas (for example, whether it is treated as tax revenue for appropriation, or a fee for services) will therefore depend on other statutory and administrative contexts beyond this text.
Licence: The Act uses "licence" to mean a licence granted under the Narcotic Drugs Act 1967 (s 3). Therefore the universe of objects that may carry a charge under this Act is limited to licences created under that external statute. Any analysis of affected categories must cross‑reference the 1967 Act to see which licence classes and activities exist.
Timing of charges: A charge is imposed on licences that are in force at any time during a financial year or during such other prescribed period as the regulations specify (s 6(1)). The regulations may therefore set charging periods that differ from a financial year (s 6(2)).
Heterogeneity by class and activity: The Act anticipates differentiation. The regulations may prescribe different periods, different matters, different amounts, or different methods of calculation for different classes of licence and for licences of the same class that authorise different activities (ss 6(2), 6(4), 8(2)). The statutory scheme therefore contemplates tailoring charges by licence type and by activity authorised under a licence.
Matters relating to a licence: Beyond charging a licence that is "in force", s 6(3) permits a charge to be imposed on each matter prescribed by the regulations, where that matter relates to a licence in force. What constitutes a "matter" is therefore a regulatory decision.
Constitutional limitation on excise/customs: Subsection 6(5) makes explicit that a charge under s 6(3) only extends to the extent the charge is not a duty of customs or excise within the meaning of s 55 of the Constitution (s 6(5)). That places a textually acknowledged outer limit on the scope of permissible charges.
Liability and amounts: The charge is payable by the holder of the licence (s 7). The amount is as prescribed or worked out according to methods in the regulations, with express permission for a nil amount (s 8(1)-(3)).
Delegated legislation: The power to fill in all of the substantive parameters rests with regulation‑making power conferred on the Governor‑General (s 9).
Taken together, the statute is primarily an enabling measure. The operative policy levers , who is charged, for what, when and how much , are not set on the face of the Act but are delegated. Practically, therefore, the regulations will determine the contours and burden of this charging regime. The Act signals flexibility to differentiate by licence class and activity (ss 6(2), 6(4), 8(2)), and it preserves a constitutional boundary (s 6(5)). The Act’s reach across Crown capacities and external Territories is also a direct statutory choice (ss 4-5).
Who it affects
The Act directly affects the following categories of persons and entities, as set out in the Act.
Licence holders under the Narcotic Drugs Act 1967. Section 3 defines "licence" by reference to the Narcotic Drugs Act 1967. Section 7 states that the charge is payable by the holder of the licence. Therefore the immediate payers will be those legal entities that hold licences of the type created under the 1967 Act (s 3; s 7).
Persons or entities carrying out activities authorised under a licence. The Act expressly allows different treatments for licences of the same class that authorise different activities (ss 6(2), 6(4), 8(2)). Depending on how regulations are framed, holders whose licences authorise particular activities may face different periodicity, different prescribed matters, different amounts, or different methods of calculation.
Entities in external Territories. The Act extends to every external Territory (s 5). Licence holders operating in an external Territory therefore fall within the statutory reach. The Act does not carve‑out or exempt territorial operations; it expressly extends the charging power to those jurisdictions (s 5).
The Crown in its capacities, with a specific exclusion. Section 4 states that the Act binds the Crown in each of its capacities but goes on to provide that it does not bind the Crown in right of the Commonwealth (s 4). That wording creates a statutory distinction between Crown capacities and the Crown in right of the Commonwealth. The Act therefore expressly contemplates Crown involvement but limits the Crown’s exposure in a specific textual manner (s 4).
Regulators and the executive. The Governor‑General has power to make regulations prescribing the matters required or permitted by the Act and any matters necessary or convenient to give effect to it (s 9). The content of the regulatory instruments will determine the practical incidence of charges, so the executive/administrative bodies preparing and implementing the regulations will be materially affected.
Practitioners and compliance advisers. Because the Act delegates core particulars (periodicity, amounts, methods, and what matters are chargeable) to regulation (ss 6, 8, 9), legal, accounting and compliance advisers will need to monitor subordinate legislation and administrative guidance to determine obligations. They will also need to cross‑reference the Narcotic Drugs Act 1967 for licence definitions (s 3).
Potentially the Parliament by way of oversight. While not stated in the Act, regulation‑making by the Governor‑General normally occurs within the delegated legislation framework; the Act’s policy features will therefore become operational via regulations. The Act itself creates the enabling power but not the detail (s 9).
The Act therefore affects holders of licences under the Narcotic Drugs Act 1967 first and foremost, with broader operational implications for regulators, advisers, and licence‑related activities across external Territories. The holder of the licence is the legal person explicitly made liable for payment (s 7). The Act’s delegation of detail to regulation means the full profile of affected persons will only be evident once regulations are made and the definitions in the 1967 Act are consulted (s 3; s 9).
Key duties and rights
The Act imposes one primary statutory duty and creates a framework for regulatory rights and exemptions by leaving particulars to subordinate legislation.
Primary statutory duty
Payment of charges by licence holders. Section 7 states directly that "Charge is payable by the holder of the licence." This is the operative statutory liability: if a charge is imposed under the Act on a licence or on a prescribed matter relating to a licence, the licence holder is the person statutorily obligated to pay (s 7).
Regulatoryly allocated duties
Compliance with prescribed periods. A charge is triggered if a licence is in force at any time during a financial year or during other periods prescribed by the regulations (s 6(1)). Therefore a duty arises when the circumstances specified by regulation occur. The regulations may prescribe different periods for different licence classes or activities (s 6(2)).
Compliance with charges on prescribed matters. The Act allows charges on each matter prescribed by the regulations that relates to a licence in force (s 6(3)). If a regulation prescribes a matter as chargeable, the duty of payment follows under s 7.
Regulatoryly created rights and definitional consequences
The right to nil treatment. Section 8(3) expressly includes nil amounts within the statutory meaning of "amount." This leaves room for regulations to set the charge at zero for particular licences, matters, classes or activities. Practically, licence holders could have either positive monetary duties or 'no charge' outcomes depending on regulatory choice (s 8(3)).
Differentiation and tailoring. The Act grants the power to make different rules for different licence classes and activities (ss 6(2), 6(4), 8(2)). That creates a statutory framework in which rights (to reduced or nil charges, or to different timing) can be afforded by regulation to specific licence holders.
Constitutional boundary as a limit on regulation. Section 6(5) places a statutory constraint on the use of s 6(3) by prohibiting charges to the extent they would be customs or excise duties under s 55 of the Constitution. That is a legal limit on what regulation may validly prescribe under the Act (s 6(5)).
Not expressed on the face of the Act
No statutory mechanism for enforcement or specified sanctions. The Act does not set out penalties, enforcement processes or specific collection mechanisms. The Act’s instrument of operationalisation is the regulation‑making power in s 9, which "may prescribe matters ... necessary or convenient" for giving effect to the Act. Therefore duties and rights in practice will depend on what the regulations enact about billing, payment windows, late payment consequences, debt recovery, or administrative appeals (s 9).
No express administrative review or appeal rights within the Act. The Act does not specify review pathways for disputed charges. Any rights to review or internal merits processes would therefore have to be found either in the regulations made under s 9 or in other administrative law pathways external to the Act (s 9).
Summary
The Act creates a clear statutory duty: licence holders must pay charges imposed under the Act (s 7). It then delegates the particulars of how that statutory duty operates , who exactly is chargeable, for what periods, what matters, and how amounts are calculated (including the ability to prescribe nil amounts) , to regulation (ss 6, 8, 9). The Act also contains a limit so that regulations cannot implement charges that amount to customs or excise duties within the meaning of the Constitution (s 6(5)). Practitioners must therefore read the Act together with any regulations and the Narcotic Drugs Act 1967 to identify the concrete duties and rights applicable to a particular licence holder (s 3; s 9).
Penalties and enforcement
The Act itself does not prescribe penalties, offences or enforcement mechanisms. The only enforcement‑adjacent text on the face of the Act is the power to make regulations (s 9). The statute therefore leaves collection, enforcement, sanctions for non‑payment, and any administrative procedures to subordinate instruments or to other statutes and administrative arrangements.
What the Act says (and what it does not)
No penalties specified on the face of the Act. A careful reading shows the Act authorises the imposition of a "charge" and specifies who is liable (s 7) and how the amount will be determined (s 8), but it contains no provision setting criminal or civil penalties or prescribing enforcement procedures such as charging notices, due dates, interest on late payments, garnishment or licence suspension for non‑payment.
Delegation to regulation. The Governor‑General may make regulations "prescribing matters required or permitted by this Act to be prescribed" or otherwise "necessary or convenient" to give effect to the Act (s 9). That language is broad; in practice, regulation may be the instrument by which collection and enforcement mechanisms are established. But until the regulations are available and examined, the Act itself gives no procedural or sanctioning detail (s 9).
Practical implications for enforcement and penalties
Collection mechanism uncertainty. Because the Act does not specify billing mechanisms, compliance officers, collectors, or courts will need to look to the regulations or separate statutory collection schemes to determine how charges are invoiced and recovered. The Act does not specify whether charges are recoverable as a debt, subject to administrative garnishee, or linked to licence conditions.
Potential requirement for ancillary legislation or administrative instruments. The effective implementation of a charging regime often requires administrative guidance, forms, and enforcement rules. The Act’s silence on enforcement means the executive will need to provide or rely on established collection frameworks, and practitioners should expect to see those details in delegated instruments.
Constitutional constraint on form of charge may affect enforcement. Charges that risk being classified as customs or excise duties under s 55 of the Constitution are excluded by s 6(5). That exclusion has implications for recovery and enforcement, because an incorrectly characterised charge could be susceptible to legal challenge on constitutional grounds (s 6(5)).
What enforcement features to expect in regulations (by reference to the Act)
Prescribed periods and methods (ss 6(1)-(4), 8(1)-(2)). Regulations will likely specify the timing for payment, and a method to calculate amounts, which in turn will determine when enforcement can commence.
Differentiation by class and activity (ss 6(2), 6(4), 8(2)). Regulations may adopt different enforcement rules for different licence classes or activities; the Act gives power for such differentiation but not the detail.
Possible inclusion of nil amounts (s 8(3)). Regulations can set a nil amount, in which case there will be nothing to enforce for a particular licence or matter.
Summary
The Act does not provide penalties or enforcement mechanisms on its face; it delegates substantive detail and, implicitly, enforcement design to the regulations (s 9). Practitioners should therefore treat the Act as an enabling statute that creates duty without prescribing how it is to be enforced, and expect to find the operational answers in subordinate instruments and administrative practice. The constitutional limit in s 6(5) is an additional legal boundary that may shape enforcement options.
How it interacts with other laws
The Act is compact and references a small number of external legal texts and legal principles. The interactions below are grounded solely in the Act text.
Interaction with the Narcotic Drugs Act 1967
Definition link. Section 3 defines "licence" as a licence granted under the Narcotic Drugs Act 1967. That means the classes of licence, the activities authorised, eligibility, and the very identity of the person who is a licence holder are governed by the 1967 Act. The charging power in this Act cannot be applied except in relation to licences of the kind created under the 1967 Act (s 3). Practically, any analysis of affected parties, chargeable items, or consequential obligations must cross‑reference that Act.
Interaction with the Constitution
Customs and excise. Section 6(5) expressly provides that a charge under s 6(3) is imposed only so far as that charge is neither a duty of customs nor a duty of excise within the meaning of section 55 of the Constitution. This is an explicit textual interaction, indicating the statute recognises and accepts the constitutional limit on what the Commonwealth may impose by way of duties. The consequence is that any regulation that would amount to a customs or excise duty as understood under s 55 would be outside the statutory authorisation created by this Act (s 6(5)).
Interaction with Crown law
Crown binding. Section 4 states the Act "binds the Crown in each of its capacities" but then provides "However, it does not bind the Crown in right of the Commonwealth." That creates an internal statutory relationship about how the Act applies to Crown entities. The precise interaction will depend on who the licence holder is and whether that entity is an expression of the Crown in right of the Commonwealth or another Crown capacity (s 4).
Interaction with delegated legislation frameworks
Regulation‑making power. Section 9 gives the Governor‑General power to make regulations prescribing matters required or permitted by the Act, and any matters necessary or convenient to give effect to the Act (s 9). That situates this Act firmly within the Commonwealth delegated legislation regime. Any operational rules, including those for collection and enforcement, will be made under that delegated power and therefore subject to the usual parliamentary and legal controls that apply to delegated legislation.
Interaction with external Territories law
Territorial extension. Section 5 extends the Act to every external Territory. This means the Act must be read alongside the legal arrangements that govern the application of Commonwealth laws in each external Territory (s 5). The Act does not specify variations by Territory, however.
Interaction with other Commonwealth statutory collection or finance rules
No express appropriation/collection wording. The Act does not specify how receipts are to be treated for appropriation purposes, nor does it specify the mechanism by which the Commonwealth will collect the charges. Therefore, in practice, implementation will interact with existing Commonwealth financial management, appropriation and collection legislation and administrative mechanisms even though those interactions are not detailed on the face of this Act.
Summary
The Act is anchored to the Narcotic Drugs Act 1967 by definition (s 3), constrained by the constitutional bar on customs and excise duties (s 6(5)), and implemented through delegated legislation (s 9). It also contains specific statements about the Crown and about extension to external Territories (ss 4-5). The practical effect of the Act cannot be divorced from the regulatory instruments made under s 9 and from the substantive provisions of the 1967 Act that define licences. Absent regulations, the Act creates the legal power but not the operational detail.
Amendment history
The Act as supplied is short and includes a commencement table and a note about the table. The only recorded amendment‑relevant entries on the face of the Act are those in the commencement provision. All statements below are taken from s 1 and s 2 of the Act.
Short title. Section 1 establishes the short title: "This Act is the Narcotic Drugs (Licence Charges) Act 2016" (s 1).
Commencement table and dates. Section 2(1) provides that each provision specified in column 1 of the commencement table commences in accordance with column 2 of the table and that any other statement in column 2 has effect according to its terms (s 2(1)). The table included in the Act delineates:
Sections 1 and 2 and anything in the Act not elsewhere covered by the table commenced on the day the Act received Royal Assent (the table’s column 3 recorded the date 23 November 2016).
Sections 3 to 9 commenced at the later of: (a) immediately after the commencement of Schedule 1 to the Narcotic Drugs Amendment Act 2016; and (b) the start of the day the Act received Royal Assent. In the original enactment the table notes that paragraph (b) applies and records 23 November 2016 in column 3 for those entries (s 2(1) and the commencement table entries).
Table as original enactment only. Section 2 contains an express note that the table "relates only to the provisions of this Act as originally enacted" and that it "will not be amended to deal with any later amendments of this Act" (s 2, preface to the table). That means the table records only the original commencement positions and the text anticipates that later amendment history will not be reflected by changes to that particular table within the Act text.
Column 3 not part of the Act. Section 2(2) expressly provides that any information in column 3 of the table is not part of the Act, and that information may be inserted or edited in any published version without affecting the Act. Practically, this means that the date recorded in column 3 is informational only and not statutory text (s 2(2)).
No other amendments or amendment mechanisms are recorded on the face of the Act. The Act therefore presents a narrow amendment history limited to its original commencement entries and the textual caveats about the commencement table (s 2). Any later amendments, repeals, or consequential changes will not appear in the original commencement table given the express wording of s 2.
Litigation history
The Act text contains no reference to litigation, judicial interpretation, or case law. It does not list any judicial decisions, nor does it record any dispute resolution or judicial review outcomes within the statutory text supplied.
Implications for practitioners
No appellate or judicial guidance recorded in the Act. Because the Act itself does not cite or summarise any litigation, there is no authoritative judicial exposition of its terms included in the statutory text. Legal interpretation and dispute resolution would therefore, in the absence of external case law, rely on statutory construction principles, the text of the Act, the content of any regulations made under s 9, and the surrounding legal framework (including the Narcotic Drugs Act 1967 and constitutional limits such as s 55).
Reliance on regulations and external adjudication. As the Act delegates the key operational decisions to subordinate instrument, practical disputes will likely focus on the content of the regulations and how they have been applied. Any judicial history relevant to this Act will therefore tend to engage with both the regulations and the interaction between the regulations and the enabling Act, rather than interpreting extensive policy text on the face of the Act.
Evidence gap. Because the Act supplies no litigation history, advisers cannot point to precedent contained in the Act itself to resolve ambiguities. They must therefore monitor subordinate legislation and administrative practice, and be prepared to test any disputed regulatory instruments through the usual administrative and judicial review channels.
Summary
No litigation history is recorded in the Act text supplied. Practitioners must therefore look beyond the Act to subordinate instruments, administrative records and any subsequent case law for judicial interpretation or to resolve disputes about the application, calculation and enforcement of charges authorised under the Act.
Gotchas
The Act is short and deceptively simple, but its design creates several practical issues and potential pitfalls that advisers and licence holders should be aware of. Each point below is grounded in the Act text.
Delegation of all operative detail to regulations
Risk: The Act sets the legal power to charge but leaves almost every operational detail to regulation (ss 6, 8, 9). Until the regulations are available and examined, it is impossible to know what will be chargeable, for which periods, at which amounts, what constitutes a "matter" relating to a licence, or how payment and enforcement will operate. Practitioners should not assume any particular charging regime is in place until they have sighted the relevant regulations (s 9).
Definition of "licence" depends on another Act
Risk: "Licence" is defined by reference to the Narcotic Drugs Act 1967 (s 3). The scope of licences that can be charged depends entirely on that Act. Advisers must cross‑refer directly to the 1967 Act rather than assume licence classes from the charging Act alone (s 3).
Timing trigger is broad and may capture short‑term licences
Risk: A licence that is in force at any time during a financial year (or during periods prescribed by regulation) attracts a charge (s 6(1)). For short‑term licences or licences that are active only briefly, regulatory determination of prescribed periods can create unexpected exposure; regulations may specify periods other than financial years and can differentiate by class (ss 6(1)-(2)).
"Matter" is undefined and wholly regulatory
Risk: Section 6(3) permits charges on "each matter prescribed by the regulations, being a matter that relates to a licence that is in force." The Act does not define "matter." Regulations could therefore identify administrative events, variations, transfers or other items as chargeable. This opens a source of regulatory discretion that could widen the base of chargeable items significantly (s 6(3)).
Constitutional limit under s 6(5)
Risk: The Act expressly excludes the imposition of charges that are customs or excise duties within the meaning of s 55 of the Constitution (s 6(5)). Determining whether a particular regulatory charge crosses that constitutional line may be complex and could be the subject of challenge. Regulators must be careful in mode and design of charges to avoid constitutional invalidity (s 6(5)).
The Crown wording
Risk: Section 4 binds the Crown in each of its capacities but does not bind the Crown in right of the Commonwealth (s 4). That non‑binding clause creates a potential legal quirk about whether Commonwealth agencies that hold licences are liable to pay under s 7. Practitioners should not assume universal Crown exposure; check whether the licence holder is the Crown in right of the Commonwealth or another entity, and whether the regulations address exemptions or liabilities for Crown entities (s 4; s 7).
Nil amounts are permitted
Risk: Section 8(3) explicitly includes a nil amount within the statutory concept of "amount." Regulations may therefore prescribe nil amounts for particular classes or matters. That means the existence of a charging power does not necessarily translate into tangible payments , but it also means reliance on nil outcomes requires vigilance in case regulations are later changed to impose positive amounts (s 8(3)).
Column 3 of the commencement table is not statutory
Risk: The Act says any information in column 3 is not part of the Act and may be edited in any published version (s 2(2)). Users who rely on the date recorded in a printed or online version should be aware that the date is informational and not statutory text. Practitioners should rely on formal commencement declarations when timing matters are critical (s 2(2)).
No on‑face enforcement framework
Risk: Because the Act contains no on‑face enforcement or penalty clauses, licence holders may be uncertain about the consequences of non‑payment until the regulations are made. Practitioners should expect to find enforcement mechanisms in the delegated instruments and should be prepared to engage on proposed regulations to secure clarity on penalty exposure (s 9).
Interdependence with other legal instruments
Risk: The Act’s practical effect will be shaped by the content of the regulations and by the underlying Narcotic Drugs Act 1967. Neglecting to consult the 1967 Act and the regulations in tandem can lead to incorrect assessments of liability and exposure (s 3; s 9).
Each of these "gotchas" arises directly from choices in the Act’s drafting: broad delegations to regulation (ss 6, 8, 9), cross‑reference to another Act for licence scope (s 3), explicit constitutional caution (s 6(5)), and the particular Crown phrasing (s 4). For compliance and risk assessment, the decisive documents will therefore be the regulations and the Narcotic Drugs Act 1967.
How to comply
The Act leaves compliance detail to regulation, but it creates a clear, limited set of preparatory and monitoring tasks licence holders and advisers should undertake. The following is a practical compliance checklist drawn strictly from the Act text and organised as immediate, regulatory and ongoing steps.
Immediate steps (statutory obligations to check)
Identify whether you hold a "licence" as defined by the Act.
Reference: s 3. The Act defines "licence" as a licence granted under the Narcotic Drugs Act 1967. Step: pull the licence documentation, confirm the statutory source under the 1967 Act, and classify the licence class and authorised activities.
Determine current in‑force status across periods.
Reference: s 6(1). Step: create a timeline showing whether the licence was in force at any time during the current financial year and during any other periods that might be prescribed by regulations. Because regulations may prescribe different periods (s 6(2)), note all dates of commencement, renewal and cancellation.
Regulatory watch and engagement
Obtain and review the regulations once made.
Reference: ss 6, 8, 9. Step: as soon as regulations under s 9 are available, review them to determine:
what periods are prescribed for charge imposition (s 6(1)-(2));
what "matters" are prescribed as chargeable (s 6(3)-(4));
the amounts or the methods for calculating amounts (s 8(1)-(2));
payment mechanisms, due dates, enforcement, review or appeal provisions if prescribed (s 9).
Record the effective dates of any regulatory changes and map them to licence timelines.
Verify whether any nil amounts apply.
Reference: s 8(3). Step: confirm whether regulations prescribe nil amounts for any licence classes, matters, or activities. If nil amounts are in force, document the basis and the expiry conditions for any such treatment.
Operational compliance
Set up accounting and cashflow arrangements.
Reference: ss 7, 8. Step: having identified potential charge amounts or calculation methods, allocate budget and cashflow to meet likely payment obligations. The statutory obligation to pay rests with the licence holder (s 7), so commercial planning should reflect that.
Maintain accurate records of licence activity and in‑force dates.
Reference: s 6(1)-(3). Step: keep contemporaneous logs of licence commencement, renewals, variations, transfers, suspensions and cancellations. Because charges are triggered by a licence being in force during prescribed periods and because "matters" relating to a licence may be charged (s 6(3)), accurate records are necessary to assess exposure and contest any charges if needed.
Establish a compliance point of contact for regulatory notices.
Reference: s 9. Step: ensure there is a responsible contact to receive regulatory instruments, payment notices, or other communications that will likely be issued under the regulations.
Legal and constitutional checks
Assess constitutional risk if a charge appears to function like a customs or excise duty.
Reference: s 6(5). Step: if a proposed or enacted regulation frames a charge that resembles a production or sales levy on goods, seek legal advice on whether it could be characterised as a customs or excise duty under s 55 of the Constitution. The Act disallows charges to the extent that they are such duties (s 6(5)).
Clarify Crown status for licence holders that are public entities.
Reference: s 4. Step: determine whether the licence holder is the Crown in right of the Commonwealth, another Crown capacity, or a statutory entity. The Act binds the Crown in each of its capacities but not the Crown in right of the Commonwealth (s 4). Confirm whether regulations address Crown liability or exemptions.
Administrative and dispute readiness
Prepare to engage on delegated instruments and to seek review if necessary.
Reference: s 9. Step: when regulations are proposed or made, review and, where appropriate, participate in consultation processes. If you receive a charge that you believe is beyond the statutory scope or unconstitutional (s 6(5)), be prepared to seek internal review under the regulations and judicial review, as available under administrative law channels.
Checklist summary
Confirm licence identity under Narcotic Drugs Act 1967 (s 3).
Map licence in‑force dates to financial years and anticipate prescribed periods (s 6(1)-(2)).
Monitor regulations for prescribed matters, amounts and calculation methods (ss 6(3), 8(1)).
Budget for payments and maintain records of licence activity (s 7; s 6(1)).
Check for nil amounts and for any differentiation by licence class or activity (s 8(3); s 6(2), 6(4)).
Analyse whether a proposed charge could be a customs/excise duty (s 6(5)).
Verify Crown status where licence holders are public entities (s 4).
Review regulations for enforcement, penalty and review mechanisms (s 9).
The Act provides the legal authority for charges but not the operational detail. Compliance therefore requires proactive monitoring of regulations once made under s 9 and careful alignment with the licence categories in the Narcotic Drugs Act 1967 (s 3).
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Definitions
3 Definitions
In this Act:
charge means charge imposed by this Act.
licence means a licence granted under the Narcotic Drugs Act 1967.
4 Crown to be bound
4 Crown to be bound
This Act binds the Crown in each of its capacities. However, it does not bind the Crown in right of the Commonwealth.
5 Extension to external Territories
5 Extension to external Territories
This Act extends to every external Territory.
6 Imposition of charges
6 Imposition of charges
Charge on a licence
(1) Charge is imposed on a licence that is in force at whichever of the following times is applicable:
(a) any time during a financial year;
(b) any time during such other period as is prescribed by the regulations.
(2) Without limiting subsection (1), the regulations may prescribe different periods in relation to the following:
(a) different classes of licence;
(b) licences of the same class that authorise different activities.
Charge on matters that relate to a licence
(3) Charge is imposed on each matter prescribed by the regulations, being a matter that relates to a licence that is in force.
(4) Without limiting subsection (3), the regulations may prescribe different matters in relation to the following:
(a) different classes of licence;
(b) licences of the same class that authorise different activities.
(5) Subsection (3) imposes a charge only so far as that charge is neither a duty of customs nor a duty of excise within the meaning of section 55 of the Constitution.
7 By whom charges payable
7 By whom charges payable
Charge is payable by the holder of the licence.
8 Amounts of charges
8 Amounts of charges
(1) The amount of a charge is the amount prescribed by, or worked out in accordance with a method prescribed by, the regulations.
(2) Without limiting subsection (1), the regulations may prescribe different amounts of, or prescribe different methods of working out amounts of, charge in relation to the following:
(a) different classes of licence;
(b) licences of the same class that authorise different activities.
(3) In this section:
amount includes a nil amount.
9 Regulations
9 Regulations
The Governor‑General may make regulations prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.