Tech company Wing has warned against handing states and territories the power to set drone noise standards, saying it could compromise safety and stifle investment in the emerging technology.
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The federal transport and infrastructure department has recommended that national aircraft regulations be tweaked to allow local jurisdictions to regulate drone noise.
The Commonwealth is solely responsible for aircraft noise regulations.
In a discussion paper published as part of its review of noise regulations for drones, the department suggested states and territories might be better placed to regulate drones flying in residential areas, given they already policed other forms of suburban noise.
But the company behind Canberra's household drone delivery service has warned against that approach.
In its submission to the department's review, Wing said that "once a drone is in the air ... it's important that it remains under Australian jurisdiction".
"If noise regulations are developed at a state or local level and isolated from one another, it may place the safety of unmanned aircraft as a secondary priority, which would be inconsistent with the Australian government's aviation objectives," the submission read.
Wing said a "Balkanised airspace for drones" - where different rules applied in different jurisdictions - would also stymie innovation and investment in the technology.
"A patchwork of noise standards will slow development and adoption of drone technology," the submission stated.
The Google-linked company said state governments and councils would still be able to use their local planning rules to dictate where a drone delivery service could be based.
The submission included the results of independent noise testing of Wing's drones, which showed the aircraft exceeded the 45 decibel suburban daytime noise limit during flights.
But the drones were found to be quieter than cars, trucks and lawnmowers for the majority of a delivery flight.
A maximum of 66 decibels was recorded while the drone was "cruising" overhead, which was lower than the 74 decibels emitted by a passing car travelling at 50 kilometres per hour.
The drone recorded a peak 69 decibels when it descended into a driveway to complete a delivery. That was quieter than the maximum noise emitted by the truck and lawnmover, when measured from a distance of 15 metres.
In its submission Wing said it and other drone manufacturers were making "rapid advancements" that would continue to make drones quieter.
Wing has been using a quieter model drone throughout its Gungahlin operation, which was developed following its controversial trial in Bonython last year.
An Assembly inquiry this year found that the high-pitched noise emitted by Wing's drones was the "single largest source of negative feedback" during the trial and the "single biggest obstacle to community acceptance" of the technology more broadly.