The Act establishes that a person must have a permit that authorises the person to carry out restricted activities in relation to SSAN (Security-Sensitive Ammonium Nitrate). These restricted activities are specified by the COAG Principles.

A person can be issued a long-term permit (3 years) or a short-term permit (12 months or less).

Applicants for a permit must meet certain general requirements (based on the Principles). The first requirement is to demonstrate a ‘legitimate need’ to carry out the restricted activity.

The applicant must then consent to a background check that involves several processes. The Director of Industry Safety must be satisfied that the applicant is a fit and proper person, which involves checking the applicant’s competency, history relating to other permits or licences, and relevant health factors. These details are also sent to the Commissioner of Police who sends them to the Australian Federal Police and ASIO for background checking (more details on background checks are provided later in this guide).

The permit applicant is also required to nominate all employees who will have unsupervised (independent) access to SSAN. These "responsible workers" will need to consent to security checks and the Director must assess if they are fit and proper persons to access ammonium nitrate. Employees approved as responsible workers will be issued with an identity card that must be carried when the employee is working with SSAN.

An applicant for a permit also needs to prepare and submit a security plan as part of the approval process.

2. What is Security-sensitive Ammonium Nitrate (SSAN)?

SSAN is defined as products that contain greater than 45% ammonium nitrate solids or emulsions (by mass or volume). SSAN includes calcium ammonium nitrate that is not classified as a dangerous good, and dangerous goods with UN numbers 1942, 2067, 2068, 2069, 2070, 2071, 2072, 3375 and 3139 where applicable.

Exceptions are:

Ammonium Nitrate solutions that are exempt.
Class 1 dangerous goods (explosives) that are regulated under Dangerous Goods or separate explosives legislation.

3. What is the definition of 'legitimate need'?

Legitimate need is defined in Schedule 2 of the Act. It outlines the purposes for which a permit to access SSAN may be granted.

The COAG Principles state that legitimate use may include: use in commercial production processes; mining; quarrying; the manufacture of fertilizer and explosives; educational, research and laboratory use; commercial agricultural use by primary producers; and services for transportation, distribution and use of the product.

Household and domestic use, and use as a fertilizer for places such as sports grounds, or parks and gardens are not considered to be legitimate needs.

Important Note for the Tasmanian Agricultural Industry:

In June 2004, the Tasmania Government agreed to support national security measures; accepted the Principles and took the further step of banning SSAN use as a commercial agricultural fertiliser due to the security risks associated with its misuse.

4. What permits will I need under the legislation?

A permit is required for any restricted activity. The Act lists restricted activities as:

Manufacturing; importing; exporting; buying; selling; supplying; storing; using or disposing of any quantity of the security-sensitive dangerous substance, or
Transporting more than 20 kilograms of the security-sensitive dangerous substance.

If you are engaged in more than one of these activities, you may be issued with one permit that is endorsed with those approved restricted activities.

5. How much will it cost to obtain a permit?

The application fee is determined in the SSDS Regulations and is set at approximately $150 for a three-year permit. Background checks (including the issue of identity cards for responsible workers) will cost approximately an additional $60 per person.

Applicants must consent to two background checks.

A National Police certificate (NPC) check and
A Politically Motivated Violence (PMV) check.

All States and Territories are endeavouring to keep the financial impact on business and individuals as low as possible.

6. Where can I get an application form? Who do I send it to?

Application forms and other associated documents are available from Workplace Standards Tasmania (WST) and from this link.

Application Forms

7. What information will I have to provide? How long will it take for my company to get a permit?

A permit application must be accompanied by a security plan and must nominate those persons that the applicant wishes to have approved as responsible workers. The application needs to specify what restricted activities will be undertaken and why the applicant requires the permit.

The length of time taken to approve an application depends on a number of factors, such as how many people are nominated as responsible workers, the security checks being conducted and the assessment of the security plans.

It would be reasonable to allow approximately three weeks to process applications, although processing times may vary.

8. How often do I have to renew my permit?

A long-term permit must be renewed every three years. If a person requires once-off access to SSAN a short-term permit can be issued for less than 12 months. A short-term permit cannot be renewed.

9. An applicant for a permit is generally a natural person or a body corporate. Generally, only one permit is required per company.

A body corporate that is not a publicly listed company will need to specify the directors of the company and nominate any close associates. Directors of companies that are not publicly listed need to be identified in the application form and will need to consent to background checks.

10. What about a shot-firer who manufactures blasting explosives (ANFO) using SSAN. Do they need an SSDS permit?

Any person who is engaged in a restricted activity involving SSAN will need a SSDS permit. The only exception to this is where a person is transporting less than 20kg of SSAN.

If you hold a shot-firer’s permit to use, prepare (including manufacturing ANFO) or buy explosives, you still need to have a separate SSDS permit if you are working with SSAN. In other words, you must have two permits – a shot-firer’s permit that validates your competency to use explosives, and a SSDS permit for security reasons.

A business that transports more than 20kg of SSAN will need an SSDS permit. Drivers will need to be nominated by the business as "responsible workers" because they will have independent access to SSAN.

11. Why are my close associates relevant to my permit application?

A close associate is defined as a person that holds an executive position in the related person’s business, or a person who is able to exercise a significant influence in relation to the applicant’s business (see section 15 of the Act).

Close associates need to be nominated to identify all relevant individuals associated with the business and to minimise the risk that the company is being controlled by an undesirable third party.

12. Will Mutual Recognition arrangements exist between States and Territories?

The States and Territories have agreed on a set of mutual recognition arrangements. Under these arrangements, each jurisdiction will temporarily recognise, either fully or in part, an authority to transport or use SSAN granted in another jurisdiction.

For all other restricted activities such as storage, importing, exporting or manufacturing, a permit is required in each jurisdiction where the permit holder operates.

In assessing permit applications, the Director of Industry Safety may have regard to background checks, or other checks or assessments that may have been carried out by a regulator in another State or Territory.

13. As a worker, what happens if I move from State to State?

Under the SSDS Act, a permit is issued to a company or sole trader for certain restricted activities. A company or sole trader may apply for authorisation of responsible workers involved in those activities to have unsupervised access to an SSDS. When authorised, the responsible workers would be issued with an identity card. (A responsible worker might be a person in a supervisory or management role or a person who works alone in a location away from the permit holder’s business address).

The identity card indicates that the person is authorised ONLY TO WORK UNDER THAT PERMIT. Neither the permit nor the identity card is transferable.

A responsible worker in Tasmania who moves interstate would have to surrender his or her identity card to the permit holder and it would be returned to the regulator.

If you already have a permit, or its equivalent, issued by another State or Territory authorising you to have access to ammonium nitrate for a certain activity, it is unlikely that you would need a Tasmanian permit to use or transport SSAN for a period of less than three months. In any transaction involving ammonium nitrate you would have to produce the permit.

If you need to work here for more than three months, or you are to carry out an activity here that is not authorised by your interstate permit, you would need to apply for a Tasmanian permit. If you will have independent access to SSAN in the course of your work in Tasmania, the permit holder (your new Tasmanian employer) would need to apply for you to be issued with an identity card as a responsible worker.

14. Why is a security plan needed and what do I need to include in it?

A security plan is developed to effectively minimize all security risks relevant to SSAN particularly storage and transport. Guidance notes on the secure storage and transport of SSAN are available.

15. Is there someone who can help me develop a security plan?

The Director of Industry Safety may assist the applicant by providing advice or written guidelines about the security plan. The SSDS unit of Workplace Standards Tasmania will provide advice on how to complete a permit application, develop a security plan and carry out a risk assessment.

16. What is a background check?

There are two components to the background check. They involve:

(a) Checking a person’s name against the state intelligence database maintained by Tasmania Police, to see if the person is known in a State criminal context and a National Police check, involving contact with all other jurisdictions;

(b) Forwarding the person’s relevant details to the Australian Federal Police (AFP) for the PMV check.

PMV checks are carried out by ASIO to determine whether or not an applicant may be of concern in a politically motivated violence context.

A consent form must be completed for the background check to occur. Appeal rights exist against both components of the background check.

17. What other information will the Regulator consider before issuing an authority?

Aside from the background checks, the Director of Industry Safety must not approve an application unless certain general requirements are met. These requirements are listed in section 12 of the Act.

For example, the Director of Industry Safety must also assess whether the permit applicant and the persons nominated as responsible workers are fit and proper persons.

The matters considered as part of the fit and proper person test are listed in sections 13 and 14 of the Act.

18. What is the process for assessing applications?

An applicant seeking a SSDS permit must lodge an application along with a security plan, consent forms and fees to any Service Tasmania shop.

The security plan will include the names of all persons seeking authorisation for unsupervised access to SSAN. These people are called "responsible workers" in the legislation. The permit applicant will need to verify the identification of all possible "responsible workers" and require them to fill in the consent forms that will allow for the PMV and NPC checks to take place.

Workplace Standards Tasmania and the State Security Unit will then assess all documentation.

19. How are the background checks conducted?

The State Security Unit (located within the Department of Police and Public Safety) conducts the NPC and coordinates the PMV check by forwarding the details to the Australian Federal Police. The AFP forwards this information to ASIO.

The AFP will advise the State Security Unit in writing whether a person has a "clear" or "adverse" assessment.

In the case of an ‘"adverse" assessment, the AFP will also provide a copy of the assessment directly to the person who is the subject of the PMV check.

20. If I fail a background check, can I appeal against the decision?

Politically Motivated Violence (PMV) Check

Yes. The AFP will provide information on how the person can lodge an appeal against an "adverse" assessment.

Appeals against "adverse" assessments are lodged with the Commonwealth Administrative Appeals Tribunal.

Tribunal hearings are as informal and prompt as possible. The Tribunal is not bound by the rules of evidence and proceedings are held in private. The applicant will have the opportunity to present evidence or submissions to the Tribunal.

The Tribunal’s findings may express the opinion of the Tribunal as to the correctness of, or justification for, any opinion, advice or information contained in the assessment. The applicant may appeal the Tribunal’s decision on questions of law only, to the Federal Court.

Tasmania Police and National Police (NPC) Background Checks

Where the Director (WST) denies a permit applicant or nomination for a responsible worker, due to the content of a background check, or;

If the Commissioner of Police objects to an application on security grounds, the relevant person may apply to the Magistrates Court (Administrative Appeals Division) to have the decision reviewed.

Due to the security sensitive nature of the information on which the Commissioner’s advice may have been based, a review of this type will be conducted in a closed court.

For further information on the appeal process contact the SSDS unit of Workplace Standards Tasmania.

21. What right of appeal do I have generally under the SSDS Act?

If you disagree with a decision made by the Director of Industry Safety or an authorised officer under the Act, you have a right of appeal to the Administrative Appeals Division of the Magistrates Court.

Specific provisions in the Act regarding the right of appeal are:

Refusal of an application for an SSDS permit (s18(2)(c)
Refusal to vary a permit condition at the permit holder’s request (s29(3)(a))
Variation of a permit condition on the Director’s initiative that makes the conditions more restrictive (s29)(6)(c)
Decision to cancel or suspend an SSDS permit (s31(5)(c)
Refusal of permit holders’ nomination of a person as a responsible person (s39(10)).

The Magistrates Court conducts review proceedings in an informal manner. All parties are given an opportunity to present their case.

The Court may affirm or vary a decision; set the decision aside and substitute a new decision or remit a decision for reconsideration by the decision-maker. The Court will provide reasons for its decision. If you are not satisfied with the decision of the Magistrates Court you may apply to appeal the decision to the Supreme Court (but on questions of law only).

22. What action can be taken against me or my company if the legislation is breached?

A person who breaches the Act or their permit conditions may be prosecuted. The court may impose a fine or a term of imprisonment.

Other disciplinary action that may be taken includes:

cancellation or suspension of a permit
prohibition from involvement with SSDS for a certain period
an order to forfeit the SSDS
a direction to take corrective action (such as revising your security plan, conducting a training course or prohibiting a responsible worker from carrying out a restricted activity).

Action may be taken against the permit holder (as a body corporate or a natural person) or responsible workers. If an offence is committed by a body corporate, each person concerned in the management of the body corporate may be convicted of the offence. This applies unless the act or omission took place without their knowledge or consent or the person used all due diligence to prevent that act or omission by the body corporate.

The nature and degree of penalty imposed is relative to the category of person being penalised and the seriousness of the breach.

Breaches of key provisions of the Act attract substantial fines, or (in some cases) prison sentences. (See Attachment A for list of penalties and disciplinary action measures)

COAG has agreed that the regulation of ammonium nitrate and other security-sensitive dangerous substances is imperative to the security of the nation. High penalties and disciplinary action are necessary to ensure that Tasmania’s legislative framework is consistent with the intention of the Principles.

23. What is a security-sensitive dangerous substance?

A security-sensitive substance is listed in Schedule 1 of the Security-Sensitive Dangerous Substances Act. At this stage the only substance to be listed is ammonium nitrate solids, emulsions or mixtures containing greater than 45% ammonium nitrate.

24. Why is ammonium nitrate regarded as "security sensitive"?

The Council of Australian Governments (COAG) is currently conducting a national review of hazardous materials as part of the national counter-terrorism strategy. COAG identified ammonium nitrate as a substance that needed to be controlled because it is a common ingredient of explosives and it has a history of use by terrorists. In Australia, there have also been recent incidents where ammonium nitrate has been misused. Ammonium nitrate was used in a "demonstration" explosion in Tasmania in August 2003 and was used to explode a vehicle in New South Wales in January 2004.

25. Why is the Tasmanian Government regulating ammonium nitrate?

In June 2004, COAG agreed to a set of National Principles for the Regulation and Control of Ammonium Nitrate. All States and Territories agreed to regulate ammonium nitrate according to these Principles.

26. Why doesn’t the Federal Government pass one law to regulate ammonium nitrate for all States and Territories?

Ammonium nitrate is a dangerous good and the regulation of dangerous goods is a State and Territory responsibility.

While there may be minor variations in the way each State and Territory chooses to regulate ammonium nitrate, they will all be based on the same security measures contained in the Principles.

27. Why is the Tasmanian government only regulating ammonium nitrate and not other substances that can be misused?

Regulation of ammonium nitrate is the first priority, but other chemicals (including other explosive precursors), biological agents, and radiological materials are also being considered as part of the COAG Review of Hazardous Materials.

Some substances may need to be regulated in the same way as ammonium nitrate, while others may be controlled through other forms of regulation such as industry-based codes of practice. This won’t be known for sure until the final report of the COAG Review of Hazardous Materials which is due for release in late 2005 or early 2006.

Glossary of Acronyms

AFP Australian Federal Police

ASIO Australian Security Intelligence Organisation

COAG Council of Australian Governments

NPC National Police Certificate

PMV Politically Motivated Violence

SSAN Security Sensitive Ammonium Nitrate

SSDS Security Sensitive Dangerous Substance

WST Workplace Standards Tasmania