Marine Navigation Levy Amendment Regulations 1999 (No. 1) 1999 No. 92
EXPLANATORY STATEMENT
STATUTORY RULES 1999 NO. 92
Issued by the Authority of the Minister for Transport and Regional Services.
Marine Navigation Levy Act 1989
Marine Navigation Levy Amendment Regulations 1999 (No. 1)
The Marine Navigation Levy is imposed on trading ships using Australian ports to recover the costs of navigational aids and the coastal radio service provided on behalf of the Commonwealth by the Australian Maritime Safety Authority.
Subsection 8(1) of the Marine Navigation Levy Act 1989 (the Act) provides that the GovernorGeneral may make regulations for the purposes of subsection 7(2) of the Act which provides for the amount of levy to be paid.
Subsection 7(2) of the Act as amended by regulation 4 of the Marine Navigation Levy Regulations prescribes the following rates of levy:
(a) 40 cents, or such other amount (if any) as is from time to time prescribed, for each of the first 5,000 tons of the ship's tonnage;
(b) 28 cents, or other such amount (if any) as is from time to time prescribed, for each ton by which the ship's tonnage is more than 5,000 tons but not more than 20,000 tons;
(c) 11 cents, or such other amount (if any) as is from time to time prescribed, for each ton by which the ship's tonnage is more than 20,000 tons but not more than 50,000 tons;
(d) 4 cents, or such other amount (if any) as is from time to time prescribed, for each ton by which the ship's tonnage is more than 50,000 tons.
A review of the levies imposed on the shipping industry recommended that the cost of providing the coastal radio service to ships should be a charge collected as part of the Marine Navigation Regulatory Functions Levy rather than as part of the Marine Navigation Levy (which is intended for the provision of marine navigational aids). It was recommended for the change to be introduced over a maximum period of three years. The first stage was implemented in July 1998. The regulations are the second stage of the implementation of these changes.
The regulations accordingly reduce the rate of the Marine Navigation Levy by 19.4 per cent from 1 July 1999. There is an increase in the Marine Navigation Regulatory Functions Levy which will partially fund the coastal radio services. The changes to both levies are expected to decrease their combined cost to industry by 7.43 per cent.
Details of the regulations are: Regulation 1 provides that the regulations are named the Marine Navigation Levy Amendment Regulations 1999. Regulation 2 provides that the regulations commence on 1 July 1999. Regulation 3 provides that Schedule 1 amends the Marine Navigation Levy Regulations. Schedule 1:
(a) substitutes existing regulation 1 to rename the Marine Navigation Levy
Regulations as the Marine Navigation Levy Regulations 1991; and
(b) reduces the amounts of levy prescribed in regulation 4 as follows:
* for the purposes of paragraph 7(2)(a) of the Act from 40 cents to 35.5 cents.
* for the purposes of paragraph 7(2)(b) of the Act from 28 cents to 21 cents.
* for the purposes of paragraph 7(2)(c) of the Act from 11 cents to 8.5 cents.
* for the purposes of paragraph 7(2)(d) of the Act from 4 cents to 3 cents.
Overview
The Marine Navigation Levy Amendment Regulations 1999 (No. 1), issued under the authority of the Minister for Transport and Regional Services, were enacted to address a gap in the current levy structure as recommended by a review of the shipping industry's costs. These regulations amend the Marine Navigation Levy Regulations, which were originally established under the Marine Navigation Levy Act 1989. The primary objective of these amendments is to refine the allocation of costs between the Marine Navigation Levy and the Marine Navigation Regulatory Functions Levy, thereby ensuring a more accurate and efficient recovery of costs for navigational aids and the coastal radio service provided by the Australian Maritime Safety Authority. The changes implemented by these regulations aim to reduce the overall cost burden on the shipping industry, with a projected decrease of 7.43 percent in combined levy costs.
Scope and Application
The Marine Navigation Levy Amendment Regulations 1999 (No. 1) pertains to trading ships that use Australian ports, targeting the shipping industry to adjust the financial burden of providing navigational aids and the coastal radio service. These regulations are a subordinate instrument under the Marine Navigation Levy Act 1989, which applies to the Commonwealth jurisdiction. The primary function of these regulations is to implement a reduction in the Marine Navigation Levy, as recommended by a review of the levies imposed on the shipping industry. This reduction in the Marine Navigation Levy by 19.4 per cent, effective from 1 July 1999, is intended to shift the cost of providing the coastal radio service to ships from the Marine Navigation Levy to the Marine Navigation Regulatory Functions Levy, with a projected decrease in the combined cost to industry by 7.43 per cent. The changes are detailed in Schedule 1, which includes amendments to the Marine Navigation Levy Regulations, such as reducing the prescribed amounts of levy for different tonnage brackets.
Key Provisions
The main operative sections of the Marine Navigation Levy Amendment Regulations 1999 (No. 1) (the Regulations) are found within Regulation 3 of Schedule 1, which amends the existing Marine Navigation Levy Regulations. These changes specifically involve the rates of levy prescribed in Regulation 4, which are set out in the Act (subsection 7(2)). Regulation 1 names the regulations as the Marine Navigation Levy Amendment Regulations 1999, while Regulation 2 sets the commencement date of 1 July 1999. Schedule 1 then provides detailed amendments to Regulation 4, reducing the rates of levy for different tonnage brackets.
Under these regulations, the parties governed are primarily the ship owners and operators who must comply with the new rates of levy for using Australian ports. The regulations clarify the amounts payable based on the ship's tonnage, with specific reductions implemented to reflect the changes recommended by the review of levies imposed on the shipping industry. For instance, the levy for ships up to 5,000 tons is reduced from 40 cents to 35.5 cents, while the levy for ships between 5,000 and 20,000 tons is reduced from 28 cents to 21 cents.
The obligations imposed by these regulations include the requirement for ship owners and operators to ensure they are aware of the new levy rates and adjust their financial planning accordingly. The Australian Maritime Safety Authority, which is responsible for collecting the levy, must also update their systems and procedures to reflect these changes. The regulations require adherence to the new rates as of the commencement date of 1 July 1999, ensuring a smooth transition to the revised levy structure.
Any breach of these regulations could potentially lead to civil or criminal consequences, although specific offences and penalties are not detailed within the explanatory statement. The Act may contain provisions for enforcement, including fines or other penalties for non-compliance. Given the nature of the amendments, which primarily involve financial adjustments, it is likely that any breaches would be subject to fines or penalties as stipulated under the broader legislative framework of the Marine Navigation Levy Act 1989. The maximum penalties would depend on the specific nature and severity of the breach, as outlined in the primary Act.