Document ID: chunk:federal_register_of_legislation:F2022L00858:reg:7
Version: federal_register_of_legislation:F2022L00858
Segment Type: reg
Provision Reference: reg 7
Character Range: 2415–4693

7  Significant risk statement
       For section 42S(2) of the Act, the exclusion in section 6 is necessary because of the significant risk in the ACT to the health or safety of workers or the public. Gaps and inconsistencies in regulatory requirements across jurisdictions for the carrying on the occupation of firearms dealer have already been identified as an area of exploitation by illicit dealers.
       In 2008, the Australian Institute of Criminology (AIC) conducted a review of both federal and state and territory legislation and found that, while there was general compliance with the law, legislative loopholes or oversights inadvertently facilitated opportunities to divert firearms.
       As part of its 2012 report concerning firearm trafficking, the AIC noted gaps in the law with respect to firearms dealers and that regulation with regard to dealerships and the registration and manufacture of firearms were key areas requiring change including improved scrutiny around sale and disposal records maintained by dealers, and increasing penalties on the wilful entry of false information
       For example, there are inconsistent record-keeping requirements across jurisdictions including what type of, and how, information needs to be recorded, including whether the location of each firearm acquired/disposed/stored needs to be recorded. Record keeping in the ACT is currently paper-based.
       Under automatic mutual recognition, challenges may arise for the ACT regulator to trace firearms dealing by interstate dealers who may operate temporarily in the ACT and this could provide opportunities for illicit activity by dealers.
An exclusion for five years is necessary because it will enable the ACT to continue to engage with other jurisdictions to address gaps and inconsistencies in regulatory requirements and progress a nationally consistent information exchange scheme. Work is being done at a national level to progress these issues of consistency and information sharing but it is not sufficiently progressed to mitigate the risks to public health or safety.
It will also enable the ACT to review its existing licencing framework, including firearms manufacture, to ensure it is fit for purpose and addresses the risks identified by the AIC.