2023 Section 11 exemption for voyages between Norfolk Island and Australian states and territories

Overview

The Coastal Trading (Revitalising Australian Shipping) Act 2012 was enacted to establish a regulatory framework governing coastal trading activities within Australia. This Act mandates that vessels engaged in the carriage of cargo or passengers for commercial purposes must be licensed. The Act aims to promote a viable shipping industry that contributes to the broader Australian economy. The legislation allows the Minister to exempt certain vessels or classes of vessels from the Act's application, including those undertaking voyages between Norfolk Island and Australian states and territories. This exemption, which continues a longstanding provision under the Navigation Act 1912, is intended to ensure Norfolk Island has access to shipping services, given its limited access to such services. The exemption is considered minor and does not alter existing arrangements, thus not requiring external consultation. It is compatible with human rights as it does not engage any of the applicable rights and freedoms under the relevant international conventions.

Scope and Application

The Coastal Trading (Revitalising Australian Shipping) Act 2012 governs the regulation of coastal trading within Australia, requiring vessels to obtain a licence to carry passengers or cargo between ports in Australian states and territories for commercial activities. This Act applies to any vessel that engages in coastal trading as defined, and the failure to comply with its requirements can result in pecuniary penalties. Section 11 of the Act allows the Minister to exempt specific vessels, classes of vessels, or individuals from its application, either permanently or for particular voyages or periods. This regulatory framework ensures that only authorised vessels operate in Australian coastal waters. The Act extends to all Australian states and territories, establishing a unified approach to the regulation of coastal trading. However, the Act does not apply to vessels making voyages exclusively between Norfolk Island and Australian ports, continuing an exemption under the Navigation Act 1912. This exemption remains unchanged and is intended to ensure that Norfolk Island has access to shipping services, given its limited maritime connectivity. The exemption is a legislative instrument under the Legislative Instruments Act 2003, effective from April 8, 2023, to April 7, 2028, and has been deemed compatible with human rights as it does not alter existing arrangements or infringe on any rights recognised under international human rights instruments.

Key Provisions

The Coastal Trading (Revitalising Australian Shipping) Act 2012 (the Act) outlines the regulations for coastal trading within Australia. Section 7 defines coastal trading as any commercial activity involving the carriage of passengers or cargo from a port in one state or territory to another, either within the same state or between different states or territories. Section 11 of the Act allows the Minister to exempt certain vessels, persons, or classes thereof from the Act's provisions, either for specific periods or voyages. This section effectively allows for a legislative instrument to be created, which directs that the Act does not apply to certain voyages. For instance, Section 11 exempts vessels undertaking voyages for the carriage of cargo or passengers between Norfolk Island and any Australian port, provided the vessel does not take on cargo or passengers from any Australian port other than Norfolk Island for unloading or disembarking at another Australian port. This exemption mirrors the longstanding exemption found in subsection 421(1) of the Navigation Act 1912 and continues to allow Norfolk Island access to necessary shipping services, recognising the island’s limited shipping options. The Act imposes specific obligations on parties engaging in coastal trading. Any vessel used for coastal trading must be licensed under the Act, and using an unlicensed vessel for such activities may result in a pecuniary penalty for contravening a civil penalty provision. The Act also requires that any exemptions granted by the Minister, such as those for voyages to and from Norfolk Island, be documented as legislative instruments under the Legislative Instruments Act 2003. Furthermore, while the exemption for Norfolk Island voyages remains unchanged from its original provision in the Navigation Act, the Act requires that such exemptions be reviewed and potentially renewed every five years. The legislative instrument for these exemptions must be registered and takes effect from 8 April 2023, remaining in force until 7 April 2028. Breaches of the Act's provisions, such as engaging in coastal trading without a required licence, can result in significant penalties. Under the Act, a pecuniary penalty may be imposed for contravening a civil penalty provision, although the exact amount is not specified in the explanatory statement. It is important to note that while the Act allows for exemptions, any misuse of these exemptions, such as a vessel taking on cargo or passengers from an Australian port other than Norfolk Island for unloading or disembarking at another Australian port, would not be covered by the exemption and could result in penalties. Additionally, the legislative instrument is designed to ensure that the exemption does not alter existing human rights, as outlined in the Human Rights (Parliamentary Scrutiny) Act 2011, confirming that the exemption is compatible with the human rights and freedoms recognised or declared in the relevant international instruments.