EXPLANATORY STATEMENT
Subject – Coastal Trading (Revitalising Australian Shipping) Act 2012
Section 11 exemption for voyages between Christmas Island and Australian States and Territories
The Coastal Trading (Revitalising Australian Shipping) Act 2012 (the CT (RAS) Act) regulates coastal trading by providing for licences to be granted to authorise vessels to engage in coastal trading, as defined in section 7 of the CT (RAS) Act. A vessel is engaged in coastal trading if the vessel, for or in connection with a commercial activity, takes on board passengers or cargo and carries the passengers or cargo:
- From a port in a State or Territory to another port in another State or Territory;
- From a port in a State or Territory to another port in the same State or Territory and continues to carry the passengers or cargo to a port in another State or Territory;
- From a port in a State or Territory to another port in the same State or Territory (an intra-state voyage) and the vessel is declared by the Minister under section 12 to be subject to the requirements of the CT (RAS) Act.
Using a vessel to engage in coastal trading without a licence may lead to a pecuniary penalty for the contravention of a civil penalty provision.
Section 11 of the CT (RAS) Act allows the Minister to direct that the CT (RAS) Act does not apply to a vessel or class of vessels; or to a person or class of persons. An exemption under section 11 may be confined to one or more specific periods or voyages. The CT (RAS) Act provides that the Minister’s direction to exempt is a legislative instrument.
The legislative instrument directs that the CT (RAS) Act does not apply to vessels undertaking any voyage for the carriage of cargo or passengers between Christmas Island and any port in the Commonwealth or in the Territories, but not including any voyage in the course of which a vessel takes on cargo or passengers from any port in the Commonwealth or in the Territories other than a port in Christmas Island for unloading or disembarking at another such port.
This exemption continues a longstanding exemption provided under subsection 421(1) of the Navigation Act 1912 (the Navigation Act). The exemption remains unchanged from that provided under the Navigation Act. The exemption has been in place since 1998 to allow Christmas Island to access shipping services at competitive freight rates, and to remove an anomaly whereby Christmas Island was the only Commonwealth island territory without an exemption.
The exemption is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation external to the Australian Government is unnecessary as the exemption is of a minor or machinery nature and does not alter existing arrangements.
The exemption commences on 8 April 2013 and remains in force until 7 April 2018.
Authority: Section 11 of the Coastal Trading (Revitalising Australian Shipping) Act 2012
AA
Overview
The Coastal Trading (Revitalising Australian Shipping) Act 2012 (CT (RAS) Act) was enacted to regulate coastal trading activities in Australia, ensuring that vessels operating in this capacity hold the appropriate licences to avoid civil penalties. This Act defines coastal trading as any vessel carrying passengers or cargo from a port in a state or territory to another port within the same or a different state or territory. The CT (RAS) Act provides for the exemption of certain vessels or classes of vessels from its application, as directed by the Minister under section 11. This includes specific voyages, such as those between Christmas Island and Australian states and territories. This exemption, which mirrors an existing provision in the Navigation Act 1912, was implemented to maintain competitive freight rates for Christmas Island and to rectify a historical anomaly where the island lacked a similar exemption. The exemption under the CT (RAS) Act is intended to remain in force until 7 April 2018 and is considered a legislative instrument under the Legislative Instruments Act 2003.
Scope and Application
The Coastal Trading (Revitalising Australian Shipping) Act 2012, which aims to regulate coastal trading by requiring vessels to hold a licence for certain activities, includes a specific exemption detailed in Section 11. This exemption pertains to vessels that undertake voyages between Christmas Island and any port in the Australian states or territories. The exemption applies to any vessel involved in the carriage of cargo or passengers for these voyages, provided that the cargo or passengers are not taken on board from another port in the Commonwealth or in the territories, other than a port in Christmas Island, for unloading or disembarking at another such port. This exemption continues the longstanding arrangement previously outlined in the Navigation Act 1912, which was enacted to ensure that Christmas Island could access competitive freight rates and to rectify an anomaly where it was the only Commonwealth island territory without such an exemption. The exemption, which is a legislative instrument under the Legislative Instruments Act 2003, was deemed not to require external consultation as it is of a minor nature and does not alter existing arrangements. It was effective from 8 April 2013 until 7 April 2018, after which it would need to be reviewed or renewed if continued application is warranted.
Key Provisions
The Coastal Trading (Revitalising Australian Shipping) Act 2012 (CT (RAS) Act) establishes a framework for regulating coastal trading through licensing requirements (section 7). According to the Act, a vessel is considered to be engaged in coastal trading if it carries passengers or cargo from a port in a State or Territory to another port within a State or Territory, or from one State or Territory to another, or if it is declared by the Minister under section 12 to be subject to the Act's requirements. Section 11 allows the Minister to exempt certain vessels or persons from the application of the Act, which can be limited to specific voyages or periods. A notable exemption pertains to voyages between Christmas Island and Australian ports, which have been exempt since 1998 under subsection 421(1) of the Navigation Act 1912, and this exemption continues unchanged under the CT (RAS) Act.
The Act imposes obligations on vessels and operators to obtain a licence to engage in coastal trading. Engaging in coastal trading without a licence may result in a pecuniary penalty for breaching a civil penalty provision. The Act also requires the Minister to direct exemptions, which are implemented as legislative instruments. The exemption for voyages between Christmas Island and Australian ports is one such legislative instrument, ensuring these voyages remain outside the scope of the Act.
Breaching the requirements of the CT (RAS) Act, such as operating a vessel in coastal trading without a licence, may lead to civil penalties. The Act does not specify the exact penalties, but it indicates that contravening a civil penalty provision may result in pecuniary penalties. The legislative instrument for the Christmas Island exemption does not alter existing arrangements and does not require external consultation due to its minor nature.
The exemption for voyages between Christmas Island and Australian ports commenced on 8 April 2013 and remains in effect until 7 April 2018. This exemption is rooted in the legislative history of the Navigation Act 1912 and serves to provide competitive freight rates to Christmas Island and to remove an anomaly by ensuring it has similar shipping access as other territories. The exemption is authorised under section 11 of the CT (RAS) Act and is implemented as a legislative instrument under the Legislative Instruments Act 2003.