Marine Navigation Levy Amendment Regulations 2003 (No. 1) 2003 No. 156
EXPLANATORY STATEMENT
STATUTORY RULES 2003 No. 156
Issued by the Authority of the Minister for Transport and Regional Services.
Marine Navigation Levy Act 1989
Marine Navigation Levy Amendment Regulations 2003 (No. 1)
The Marine Navigation Levy is imposed on trading ships using Australian ports to recover the costs of marine aids to navigation provided on behalf of the Commonwealth by the Australian Maritime Safety Authority (the Authority).
Subsection 8(1) of the Marine Navigation Levy Act 1989 (the Act) provides that the Governor-General may make regulations for the purposes of subsection 7(2) of the Act, which provides for the amount of levy to be paid, calculated on a ship's tonnage. The amounts of levy set out in subsection 7(2) of the Act are all expressed such that they are superseded by whatever amount is prescribed by regulation, if any.
Regulation 4 of the Marine Navigation Levy Regulations 1991 (the Principal Regulations) prescribes the following levy rates:
(1) 29 cents for each of the first 5,000 tons of the ship's tonnage (paragraph 7(2)(a) of the Act);
(2) 17 cents for each ton by which the ship's tonnage is more than 5,000 tons but not more than 20,000 tons (paragraph 7(2)(b) of the Act);
(3) 7 cents for each ton by which the ship's tonnage is more than 20,000 tons but not more than 50,000 tons (paragraph 7(2)(c) of the Act);
(4) 2.5 cents for each ton by which the ship's tonnage is more than 50,000 tons (paragraph 7(2)(d) of the Act).
The purpose of the regulations is to decrease the rates of levy prescribed in Regulations 4(1) and 4(2) of the Principal Regulations. The adjustment reflects efficiency gains primarily from the delivery of maintenance and shipping services involved with the Authority's aids to navigation function.
Schedule 1 provides for the amounts of levy in Regulation 4 to be decreased as follows:
• for the purposes of paragraph 7(2)(a) of the Act from 29 cents to 28 cents; and
• for the purposes of paragraph 7(2)(b) of the Act from 17 cents to 14 cents.
Subsection 8(2) of the Act provides that the regulations must not prescribe an amount, for the purposes of paragraph 7(2) (a), (b), (c) or (d), that increases the amount applicable under that paragraph by more than 15% in any period of 12 consecutive months.
The regulations provide for an overall reduction of 10 per cent in the Marine Navigation Levy charged on trading ships using Australian ports from 1 July 2003 and will save shippers an estimated $2 million each year. This change is in keeping with subsection 8(2) of the Act.
The regulations commenced on 1 July 2003.
Overview
The Marine Navigation Levy Amendment Regulations 2003 (No. 1), enacted by the Australian Parliament under the authority of the Minister for Transport and Regional Services, were introduced to revise the levy rates prescribed under the Marine Navigation Levy Act 1989. The purpose of these amendments was to decrease the rates of levy, reflecting efficiency gains in the delivery of maintenance and shipping services associated with the Australian Maritime Safety Authority’s aids to navigation function. These regulations, which came into effect on 1 July 2003, reduced the Marine Navigation Levy by 10%, resulting in an estimated annual saving of $2 million for shippers, whilst adhering to the constraints set out in the Act to ensure no more than a 15% increase in any 12-month period.
Scope and Application
The Marine Navigation Levy Amendment Regulations 2003 (No. 1) apply to trading ships using Australian ports and are governed under the Marine Navigation Levy Act 1989. This legislation imposes a levy on such ships to recover costs associated with marine aids to navigation provided by the Australian Maritime Safety Authority on behalf of the Commonwealth. The Act applies to any person or entity operating a trading ship entering Australian ports, with the levy calculated based on the ship's tonnage. The geographic reach of this legislation is national, applying across all states and territories of Australia. The regulations amend the levy rates to reflect efficiency gains, reducing the overall levy by 10% and saving shippers an estimated $2 million annually. The changes are implemented in accordance with the constraints set by the Act, ensuring that any prescribed amount does not increase by more than 15% in any 12-month period. These regulations came into effect on 1 July 2003.
Key Provisions
The Marine Navigation Levy Amendment Regulations 2003 (No. 1) (the Regulations) amend the Marine Navigation Levy Regulations 1991 (Principal Regulations) to adjust the levy rates payable by trading ships using Australian ports. Section 4 of the Regulations modifies the levy rates set out in Regulation 4 of the Principal Regulations, reducing the levy for certain tonnage brackets. Specifically, the levy for the first 5,000 tons of a ship’s tonnage is reduced from 29 cents to 28 cents per ton, and the levy for ships with a tonnage between 5,000 and 20,000 tons is reduced from 17 cents to 14 cents per ton. These changes are designed to reflect the efficiency gains achieved by the Australian Maritime Safety Authority in the delivery of maintenance and shipping services related to marine aids to navigation.
The Regulations impose obligations on parties governed by them, including ship operators and owners. These entities are required to calculate the Marine Navigation Levy based on the adjusted rates specified in the Regulations. The adjusted rates must be applied to the ship's tonnage to determine the amount of levy payable when the ship enters or leaves an Australian port. Compliance with these new rates is mandatory, and failure to adhere to the updated levy calculation can result in non-compliance with the Act and the Regulations.
In the event of non-compliance, the Act provides for certain consequences. Subsection 8(2) of the Marine Navigation Levy Act 1989 mandates that the new rates prescribed by the Regulations must not increase the amount applicable under the Act by more than 15% in any 12-month period. Breaches of these provisions could result in penalties or other enforcement actions as stipulated under the Act. The precise nature of these penalties is not detailed in the explanatory statement but would typically involve fines or other financial penalties as prescribed under the governing legislation.