Coastal Trading (Revitalising Australian Shipping) Act 2012 - Section 11 exemption for cruise vessels

Overview

The Coastal Trading (Revitalising Australian Shipping) Act 2012 was enacted by the Australian Parliament to regulate coastal trading activities, particularly focusing on the licensing of vessels engaged in commercial activities involving the carriage of passengers or cargo between ports within Australia. The Act aims to provide a legal framework that ensures safety, economic efficiency, and environmental protection in the maritime sector. One notable aspect of the Act is the exemption provided under Section 11 for certain cruise vessels, which continues a longstanding exemption previously outlined in the Navigation Act 1912. This exemption allows large cruise vessels over 5000 gross tonnes, capable of speeds of at least 15 knots, and designed to carry at least 100 passengers, to operate without a licence, provided they are used for passenger carriage between Australian ports excluding those between Victoria and Tasmania. The policy objective of this exemption is to support tourism by facilitating the operation of large cruise vessels in Australian waters, thereby promoting economic activity and visitor engagement. The exemption was set to last from 1 January 2013 until 31 December 2017, allowing for a review period to assess its effectiveness and necessity.

Scope and Application

The Coastal Trading (Revitalising Australian Shipping) Act 2012 (CT (RAS) Act) regulates coastal trading activities by mandating that vessels engaged in such trade must hold a valid licence. Coastal trading, as defined in section 7 of the CT (RAS) Act, involves the transportation of passengers or cargo from one port to another within the same state or territory or between different states or territories. This includes scenarios where a vessel takes on board passengers or cargo in a port and continues to carry them to another port, either within the same state or territory or across different ones. Notably, section 11 of the Act allows the Minister to exempt specific vessels or classes of vessels, as well as individuals or classes of persons, from the licensing requirements. This exemption is implemented as a legislative instrument under the Legislative Instruments Act 2003. The Act specifically exempts vessels over 5000 gross tonnes that are capable of a speed of at least 15 knots, can carry at least 100 passengers, and are used primarily or wholly for the carriage of passengers between any ports in the Commonwealth or in the Territories, except between Victoria and Tasmania. This exemption, which mirrors a longstanding provision in the Navigation Act 1912, aims to promote tourism and was set to last from 1 January 2013 until 31 December 2017, providing a five-year window for review and potential adjustments by the Minister.

Key Provisions

The Coastal Trading (Revitalising Australian Shipping) Act 2012 (the CT (RAS) Act) sets out the regulatory framework for vessels engaging in coastal trading within Australia, which is defined in section 7 of the Act. Coastal trading involves a vessel taking on board passengers or cargo in one port and carrying them to another port, either within the same state or territory or between different states or territories. Section 11 of the Act allows the Minister to exempt certain vessels or classes of vessels, or persons or classes of persons, from the requirements of the Act, including the need for a licence. Such an exemption can be for specific periods or voyages. The obligations imposed by the CT (RAS) Act primarily revolve around ensuring that vessels engaging in coastal trading are appropriately licensed unless they fall under a specific exemption as per section 11. This includes vessels that are in excess of 5000 gross tonnes, capable of a speed of at least 15 knots, and capable of carrying at least 100 passengers, which are utilised wholly or primarily for the carriage of passengers between any ports in the Commonwealth or in the Territories, except between Victoria and Tasmania. These vessels can operate without a licence, continuing a longstanding exemption that has been in place since 1998 to promote tourism activity. The exemption provided in section 11 is intended to allow the Minister to review and consult before determining if any changes to the exemption are necessary, with the current exemption valid for five years from 1 January 2013 to 31 December 2017. Failure to comply with the licensing requirements of the CT (RAS) Act may result in a pecuniary penalty, as outlined in the civil penalty provisions of the Act. The Act allows for the imposition of such penalties for any contravention, indicating the seriousness with which the legislation treats compliance. The maximum penalties for these contraventions are not explicitly stated in the explanatory statement, but it is clear that unauthorised use of a vessel for coastal trading without a licence could lead to significant financial repercussions for the offending party. The legislative instrument under section 11 of the CT (RAS) Act serves as the formal mechanism by which the Minister can direct that the Act does not apply to certain vessels or persons. This exemption aligns with the existing provisions under the Navigation Act 1912, ensuring continuity and clarity for those operating large cruise vessels within the defined parameters. The exemption is intended to facilitate smooth operations for the cruise industry while maintaining regulatory oversight through the specified conditions and review period.