Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment)

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Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1994 No. 235

 

 

EXPLANATORY STATEMENT STATUTORY RULES 1994 No. 235

Issued by the authority of the Minister for Resources

 

Fisheries Levy Act 1984

 

Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment)

 

Section 8 of the Fisheries Levy Act 1984 (the Levy Act) empowers the Governor- General to make regulations for the purposes of sections 5 and 6 of the Act.

 

Paragraphs 5(bc) and (bd) of the Levy Act impose levy on the allocation and renewal of allocation, respectively, of units of fishing capacity, being units of fishing capacity prescribed for the purposes of those paragraphs.

 

Subsection 6(1) of the Levy Act provides, so far as is relevant, that the amount of levy imposed on the allocation or renewal of allocation of a unit of fishing capacity is the amount specified in the Regulations.

 

Subsection 3(2) of the Levy Act provides that a reference in the Levy Act to units of fishing capacity is a reference to the units into which the fishing capacity for a fishery is divided under a plan of management for a fishery determined under the Fisheries Act 1952 (the Fisheries Act).

 

The Fisheries Act was repealed by subsection 3(2) of the Fisheries Legislation (Consequential Provision Act 1991 (the Consequential Provisions Act) and regulation of Commonwealth fisheries came under the Fisheries Management Act 1991 (the Management Act). As a transitional arrangement, Part IVA of the Fisheries Act has been perpetuated under the Consequential Provisions Act for a further 3 years and will expire on 3 February 1995. The result is that the fisheries (or parts of fisheries) which are the subject of agreements between the States and the Commonwealth made under Part IVA continue to be managed under the Fisheries Act, instead of being managed under the Management Act, until the sunset provisions of subsection 7(3) of the Consequential Provisions Act take effect. Fisheries that continue to be managed, or partly managed, under the Fisheries Act in this manner are known as "Part IVA fisheries" and include the Northern Prawn Fishery (the fishery).

 

The fishery is a limited entry fishery. Fishing takes place in the fishery during two seasons each year.

 

The Northern Prawn Fishery Management Plan (the Plan), determined under the Fisheries Act, provides that the fishing capacity of the fishery is divided into units of fishing capacity. These units comprise 2 classes, Class A units and Class B units.

These units are allocated on a seasonal basis to persons who hold licences under the

 

Fisheries Act and who also held units in the previous season. A person is entitled to operate a boat in the fishery during a season if a Class B unit and a particular number of Class A units (as prescribed by the Plan) are allocated to that or another person for that season and those persons then assign those units to the boat.

 

The Class A units are classified under the Plan as active, surplus or suspense, depending on their history and whether or not they are presently assigned to a boat. An Active Class A unit is a Class A unit currently assigned to a boat under the Plan. A surplus Class A unit is a Class A unit that is not currently assigned to a boat. A suspense Class A unit is a Class A unit that (among other requirements set out in the Plan) has never been assigned to a boat.

 

The Fisheries Levy (Northern Prawn Fishery) Regulations (the principal Regulations) prescribe that allocations of active Class A units and surplus Class A units under the Plan and the renewal of those allocations are matters in respect of which an amount of levy is specified and also specify the amount of levy. The principal Regulations previously prescribed the levy at a rate of $44.75 per unit for the period 14 December each year to 13 July inclusive in the subsequent year.

 

The Regulations amend the principal Regulations so as to require the payment of levy in the reduced sum of $34.40 per unit for the period 14 July 1994 to 13 December 1994 inclusive.

 

The levy paid on the leviable Class A units is paid once in each season, at the time that allocations of units and their renewals take place. Each payment comprises different components. It is therefore necessary to prescribe a different levy amount for the commencement of each season.

 

Levy payable for the fishing season covered by the Regulations (14 July in a year to 13 December inclusive in the same year) has one component, namely the cost of the next instalment payable on a loan taken out to fund the Voluntary Adjustment Scheme (VAS). The VAS was implemented under the Plan. The VAS reduced fishing effort by encouraging unit holders to surrender their Class A units in return for being paid a set value for their units. These values were paid from the proceeds of a loan taken out on behalf of the unit holders. A Commonwealth subsidy was granted to assist the unit holders to repay the loan.

 

Levy payable for the other fishing season (14 December each year to 13 July inclusive in the subsequent year), previously covered by the Principal Regulations, was set to cover the annual costs incurred by the Australian Fisheries Management Authority in managing the NPF, an amount to fund fisheries research, and the VAS.

 

A comparative calculation of the levy rates in the principal Regulations and the Regulations is set out in the following Table:

 

Table

Item previous

rate


new rate

($000's) ($000's)

Management Costs

1,067

nil

Research Contribution

253

nil

VAS Costs

1.066

1.840

Total levy payable ($000's)

2386

1,840

Levy payable is then divided by the number of leviable units

53,355 units

53,496

units

Levy per unit ($ - rounded)

$44.75

$34.40

 

The Commonwealth subsidy granted to assist the industry to repay the VAS loan has now been used up, resulting in an increase in the VAS component of the levy.

 

Under section 7 of the Levy Act, the amount of levy continues to be due and payable on the allocation of a unit and the renewal of the allocation of a unit.

 

Details of the Regulations, which commenced on gazettal, are set out below:

 

Regulation 1 provides for the amendment of the Principal Regulations.

 

Regulation 2 specifies the new amount of levy payable in respect of the allocation and renewal of allocation of units of fishing capacity in the fishery.

Overview

The Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1994 No. 235 was enacted to amend the existing Fisheries Levy (Northern Prawn Fishery) Regulations, addressing the need to adjust the levy rates for units of fishing capacity within the Northern Prawn Fishery. The Regulations are made under the authority of the Minister for Resources and pursuant to the Fisheries Levy Act 1984. This legislative amendment was prompted by the exhaustion of the Commonwealth subsidy for the Voluntary Adjustment Scheme (VAS), which necessitated a revision of the levy structure to incorporate the increased costs associated with the VAS. The policy objective is to ensure the financial sustainability of the fishery management and research activities while adjusting for the changes in funding from the Commonwealth subsidy. The Regulations reduce the levy for the fishing season commencing 14 July 1994 to 13 December 1994, reflecting the specific costs of the VAS. This adjustment is essential for maintaining the balance between the financial requirements of the fishery management and the operational costs borne by the fishers. The amendment aims to facilitate smoother financial planning for both the fishers and the management authorities, ensuring that the levy rates are reflective of the current economic realities of the fishery.

Scope and Application

The Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1994 No. 235 applies to the Northern Prawn Fishery, a limited entry fishery managed under the Fisheries Act 1952 as a Part IVA fishery. These regulations specifically target the allocation and renewal of allocation of units of fishing capacity within the fishery. The Northern Prawn Fishery is divided into Class A and Class B units, with Class A units further categorised as active, surplus, or suspense. The Act applies to persons who hold licences under the Fisheries Act and who held units in the previous season, requiring them to pay a levy on the allocation and renewal of their fishing capacity units. The geographic reach of this legislation is federal, as it is enacted under the Fisheries Levy Act 1984, which operates on a Commonwealth level. The regulations specify the amount of levy payable for different fishing seasons, reflecting changes such as the exhaustion of the Commonwealth subsidy for the Voluntary Adjustment Scheme. Any exclusions, exemptions, or thresholds are not detailed in the explanatory statement, but the regulations will directly affect those involved in the allocation and renewal of fishing capacity units in the Northern Prawn Fishery.

Key Provisions

The Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1994 No. 235 primarily focuses on amending the levy rates applied to units of fishing capacity in the Northern Prawn Fishery (NPF) under the Fisheries Levy Act 1984. Regulation 1 provides for the amendment of the principal Regulations, while Regulation 2 specifies the new levy amount payable for the allocation and renewal of fishing capacity units within the NPF. This amendment reduces the levy rate from $44.75 per unit to $34.40 per unit for the period 14 July 1994 to 13 December 1994 inclusive. The change in levy rates is due to the completion of the Commonwealth subsidy granted to assist with repaying the loan taken out for the Voluntary Adjustment Scheme (VAS). This scheme, implemented under the NPF Management Plan, encouraged unit holders to surrender their Class A units in return for a set value. The subsidy’s conclusion has increased the VAS component of the levy. These Regulations impose several obligations on the entities involved. Firstly, they require that the levy be paid on the allocation and renewal of units of fishing capacity in the Northern Prawn Fishery. This levy is paid once each season, at the time allocations are made. The new rate set forth in Regulation 2 must be adhered to by all entities involved in the allocation and renewal of these units. The levy must be calculated based on the number of leviable units, and the payment must be made in accordance with the specified schedule. Additionally, the Regulations ensure that the levy covers specific costs, such as management costs, research contributions, and the VAS costs, which have been adjusted due to the completion of the Commonwealth subsidy. Failure to comply with the provisions of the Fisheries Levy (Northern Prawn Fishery) Regulations (Amendment) 1994 No. 235 may result in legal consequences. The Levy Act provides that the amount of levy remains due and payable on the allocation and renewal of units of fishing capacity. Non-payment or incorrect payment of the levy could lead to enforcement actions under the Act. Although the specific penalties for non-compliance are not detailed in the Explanatory Statement, it is likely that penalties would be prescribed under the Levy Act. This could include fines or other civil remedies, and in severe cases, criminal charges could be brought against individuals or entities that deliberately or negligently fail to comply with the levy requirements. The precise penalties would depend on the specific circumstances of non-compliance and any relevant provisions within the Levy Act or other applicable legislation.

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