Background
On 1 December 2023, Treasurers across Australia at the Council on Federal Financial Relations (CFFR) agreed to review the national, state and territory electrical safety frameworks for household electrical consumer products.
Australia's existing system for the safety of household electrical consumer products (low voltage and extra low voltage) is primarily made up of different state and territory laws administered and enforced by the electrical safety regulators in each jurisdiction. The existing system has protected consumers from unsafe products for many years, but over time inconsistencies and regulatory gaps have arisen. These issues impede the system's national operation and ability to respond to emerging safety risks posed by new technologies.
The review was conducted through a partnership between the Australian Government Department of Finance and the Australian Competition and Consumer Commission in consultation with the states and territories. As part of this work, a Reform Action Plan was developed, identifying areas for improvement for consideration by ministers responsible for electrical safety ahead of CFFR decision in the second half of 2024.
The review of the existing regulatory framework for household consumer electrical products (low voltage and extra low voltage) seeks to improve or maintain safety levels while ensuring regulation is fit for purpose, efficient and effective. This includes resolving inconsistencies and closing regulatory gaps to achieve national harmonisation.
The review focused on six core priorities:
- Support the transition to net zero by identifying ways to maintain and strengthen consumer and business confidence in the safety of more energy efficient and environmentally friendly technologies.
- Review suitability for increased international standards uptake that maintain or improve safety while not reducing ability of regulators to act on identified safety issues as to maintain or improve protection of the community.
- Achieve national adoption of the Electrical Equipment Safety System to provide consistent pre-market controls and to reduce regulatory burden on businesses
- Achieve appropriate regulatory coverage of extra-low voltage products
- Enhance national ministerial oversight and decision-making to ensure arrangements remain aligned, regulators are supported in their roles and align with expectations of electrical safety Ministers, including when products have been supplied nationally or by international suppliers.
- Achieve uniform compulsory recall powers for all states and territories to access that are supported by efficient and effective frameworks.
The review is conducted limited targeted consultations with business and consumer stakeholders.
Recommendations from the Reform Action Plan
The Reform Action Plan made nine recommendations to better protect consumers now and into the future, as well as enhance harmonisation, increase regulatory efficiency and reduce compliance costs for industry.
Overarching Recommendation
Commonwealth, State and Territory Governments to cooperate to harmonise and consistently implement household electrical consumer products regulation.
The Australian Government monitor the implementation of agreed recommendations and report to the Council on Federal Financial Relations.
Recommendation 1
Establish a National Meeting of Consumer Electrical Safety Ministers by revising the existing intergovernmental agreement for the Electrical Equipment Safety System, with all Electrical Safety Ministers joining the existing Ministerial Oversight Committee in the interim.
This recommendation should be read alongside Recommendation 2.
Recommendation 2
Ministers should update the Electrical Equipment Safety System framework to achieve:
- Harmonised and consistent certification requirements for all jurisdictions
- National use of the Regulatory Compliance Mark
- Adjusted distribution of funds for projects of national benefit with increased public transparency
- and reporting of financial arrangements
- A process to ensure a consistent approach to post-market controls
- Escalation processes to assist jurisdictions in reaching national agreement
The updated arrangements for the Electrical Equipment Safety System should be implemented by all states and territories through a revised intergovernmental agreement for the Electrical Equipment Safety System (Recommendation 1) and then implemented through legislation in each state and territory.
Recommendation 3
Establish a cross-government working group to enhance Australian representation and influence at International Electrotechnical Commission (IEC) and International Organization for Standardisation (ISO) International Standards setting committees to increase suitability of International Standards for adoption as Australian Standards.
Develop guidelines for modifications that are routinely required when adopting International Standards for consumer electrical products as Australian Standards.
Recommendation 4
Develop a nationally agreed pathway for market-wide recognition of overseas standards that provide an appropriate level of safety for household electrical consumer products.
This pathway should harmonise existing pathways under the Electrical Equipment Safety System and NSW system and be implemented through a revised intergovernmental agreement (lRecommendation 1) and updated administrative arrangements for the Electrical Equipment Safety System (lRecommendation 2), with jurisdictional legislative reform.
Recommendation 5
Ministers should implement a fit-for-purpose framework for recalls of household electrical consumer products which includes:
- harmonised, best practice compulsory recall powers for state and territory electrical safety regulators in their respective jurisdictions
- a recall protocol to assist electrical safety regulators and the Australian Competition and Consumer Commission to manage state-based and national voluntary and compulsory recalls
The principles for this framework should be included in an intergovernmental agreement (Recommendation 1).
Recommendation 6
State and territory governments should make changes to their respective electrical safety legislation to enable risk-based regulation of extra-low voltage electrical products. The legislative changes should lead to greater harmonisation and consistency across jurisdictions.
The Electrical Equipment Safety System should be broadened to enable certain extra-low voltage electrical products to be brought into scope and subject to regulation based on risk.
Recommendation 7
All Ministers developing policies to facilitate Australia’s transition to a net zero economy should ensure product safety impacts are considered.
The National Meeting of Consumer Electrical Safety Ministers should be central to cross-government collaboration on the development of policies with electrical consumer product safety impacts, and this should be made explicit in its role.
This recommendation should be included in an intergovernmental agreement (Recommendation 1).
Recommendation 8
Electrical Safety Ministers and the Standing Committee of Officials should consider opportunities for continuous enhancement of communication of product safety information to consumers and businesses to support understanding and confidence in the safety of household electrical consumer products.
This recommendation should be implemented through the National Meeting (Recommendation 1).
Next Steps
On 29 November 2024, CFFR agreed that the Commonwealth and State and Territory Governments will cooperate to harmonise and consistently implement the regulation of household electrical consumer products. A group of all state and territory electrical safety officials will lead the reforms with the Commonwealth Government overseeing their implementation.
A National Meeting of Consumer Electrical Safety Ministers will be created to oversee and monitor implementation of agreed reforms, including investigating risk‑based regulation of extra‑low voltage electrical products (such as certain lithium‑ion batteries).
A cross‑jurisdictional working group, led by NSW, will be established to pursue a national approach under the Australian Consumer Law to address the safe use of lithium‑ion battery powered e‑micromobility vehicles. The most appropriate mechanism to ensure the safe disposal of lithium‑ion batteries will also be explored.