As part of a sweeping reform effort targeting red tape across the broader economy, Acting Premier and State Development Minister Peter Ryan highlighted measures to ease land rehabilitation bond requirements.

Under the new system, rehabilitation bonds may be reduced up to 50% during the start-up phase of mining and quarrying projects when the risk of default is low and additional liability to the government is minimal.

It will replace the current system, which rigidly requires 100% bonds upfront.

The reduced bonds will apply for a period of up to five years after which the bond will be set at the full amount.

The government also indicated it would speed up the protracted return process for rehabilitation bonds, allowing bonds to be returned to mining companies “as soon as possible” following the successful conclusion of landowner consultation.

The streamlining process will involve reviewing internal administrative procedures and identifying opportunities to improve efficiency of the bond review.

Late bond lodgement will incur a penalty, allowing the government to recover the administrative costs associated with the delay.

The reforms will also aim to reduce the costs and barriers to mining investment through a cash bond system for individual bonds up to $A10,000 as an alternative to bank guarantees.

In addition, the current paper-based system for administration of mining exploration licences will begin a progressive transition to an online format, allowing for easier searches of existing licences and applications for new licences.

In preparing the proposals, red tape commissioner John Lloyd met with 25 different associations, as well as a number of individual businesses, including mining companies.

The initiatives were introduced as part of a plan including 36 red tape reforms to boost productivity and reduce costs for state businesses.



Treasurer Michael O’Brien said 22 of the reforms would be implemented in time to meet the government’s target of reducing red tape by 25% by July 2014.

“Cutting red tape encourages business investment in Victoria and the removal of these 22 unnecessary regulations will contribute to delivering more than $715 million in red tape savings to Victorian businesses and the wider economy,” Ryan said.

Other reforms outlined as part of the plan included efforts to simplify doing business with the government.

The government said it would coordinate prequalification for contractors across state agencies and local councils by establishing a centralised register, while encouraging the adoption of consistent specifications and conditions for managing contractual obligations.

Currently, prequalification for contractors in Victoria is uncoordinated and some agencies apply differing interpretations when managing contract obligations.