Marine Navigation Levy Amendment Regulations 2004 (No. 1) 2004 No. 135
EXPLANATORY STATEMENT
STATUTORY RULES 2004 No. 135
Issued by the Authority of the Minister for Transport and Regional Services
Marine Navigation Levy Act 1989
Marine Navigation Levy Amendment Regulations 2004 (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 Australian Government 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. Subsection 7(2) provides the amount of levy to be paid, calculated on the ship's tonnage, which may be varied by regulation.
Regulation 4 of the Marine Navigation Levy Regulations 1991 prescribes the following levy rates:
(a) 28 cents for each of the first 5,000 tons of the ship's tonnage (paragraph 7(2)(a) of the Act);
(b) 14 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);
(c) 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);
(d) 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 amend the Marine Navigation Levy Regulations to decrease the rates of levy prescribed in Regulation 4(a) and (b). The adjustment is primarily a consequence of the forecast of increased shipping activity in Australian waters mainly from higher commodity exports over the next two financial years, which will result in levy revenue growth. Efficiency gains in the delivery of the Authority's aids to navigation function also will contribute to reduced levy demand.
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 a reduction of 15% in the Marine Navigation Levy collected from trading ships using Australian ports.
Details of the regulations are:
Regulation 1 provides that the regulations are named the Marine Navigation Levy Amendment Regulations 2004 (No. 1).
Regulation 2 provides that the regulations commence on 1 July 2004.
Regulation 3 provides that Schedule 1 amends the Marine Navigation Levy Regulations 1991.
Schedule 1 provides for the amounts of levy in regulation 4 to be as follows:
• for paragraph 7(2)(a) of the Act from 28 cents to 23.5 cents
• for paragraph 7(2)(b) of the Act from 14 cents to 12 cents
Overview
The Marine Navigation Levy Amendment Regulations 2004 (No. 1) were enacted to address anticipated increases in shipping activity and revenue within Australian waters. This legislative measure was introduced by the Minister for Transport and Regional Services under the authority of the Marine Navigation Levy Act 1989, with the primary objective of adjusting the levy rates to reflect the forecasted growth in maritime traffic and the resulting revenue from the levy. The policy objective of the amendments is to ensure that the marine aids to navigation costs are effectively recovered while maintaining a balanced approach to the levy imposed on trading ships using Australian ports. The amendments aim to reduce the levy rates to reflect efficiency gains and expected revenue increases, ensuring that the levy remains aligned with the evolving maritime environment.
The regulations, which commenced on 1 July 2004, adjust the prescribed levy rates by reducing them by 15% in certain categories. Specifically, the levy rate for the first 5,000 tons of a ship's tonnage has been reduced from 28 cents to 23.5 cents, and the rate for tonnage exceeding 5,000 tons but not more than 20,000 tons has been reduced from 14 cents to 12 cents. These amendments were made in accordance with the legislative framework provided by the Marine Navigation Levy Act 1989, which allows for the variation of levy rates by regulation while ensuring that any increase does not exceed 15% over any 12-month period. The amendments aim to balance the need for adequate revenue with the practicalities of maritime commerce.
Scope and Application
The Marine Navigation Levy Amendment Regulations 2004 (No. 1) applies to trading ships using Australian ports, targeting the entities responsible for operating these vessels. The regulation is an amendment to the Marine Navigation Levy Regulations 1991 under the Marine Navigation Levy Act 1989. It adjusts the rates of the levy imposed on ships, calculated on their tonnage, to account for anticipated increases in shipping activity and efficiency gains within the maritime sector. The regulations aim to decrease the levy rates by 15%, specifically affecting the rates for ships with tonnages falling within certain brackets. The reduced levy rates are intended to ensure the revenue collected remains aligned with the costs incurred for marine aids to navigation provided by the Australian Maritime Safety Authority. These regulations have a national reach, applicable across all Australian ports, and are subject to the constraints set out in the Marine Navigation Levy Act 1989, ensuring that the levy does not increase by more than 15% in any 12-month period.
Key Provisions
The Marine Navigation Levy Amendment Regulations 2004 (No. 1) primarily address changes to the rates of the Marine Navigation Levy (subsection 8(2) of the Marine Navigation Levy Act 1989 (the Act)). Regulation 4 of the Marine Navigation Levy Regulations 1991, which prescribes the levy rates, is amended to reflect a reduction in these rates. Specifically, the levy for the first 5,000 tons of a ship’s tonnage is reduced from 28 cents to 23.5 cents per ton, and the levy for each ton over 5,000 but not more than 20,000 tons is reduced from 14 cents to 12 cents per ton (Schedule 1). These adjustments are intended to accommodate the anticipated increase in shipping activity and efficiency gains within the Australian Maritime Safety Authority's operations.
The amended regulations impose specific obligations on the entities they govern. Shipowners and operators of trading ships using Australian ports must now comply with the revised levy rates. The Australian Maritime Safety Authority is responsible for collecting the adjusted levies and ensuring that all applicable ships adhere to the new rates set forth in the regulations. Additionally, the Authority must monitor and report on the levy revenue and ensure that the levy rates do not exceed the 15% increase limit over any 12-month period, as stipulated by subsection 8(2) of the Act.
Failure to comply with the Marine Navigation Levy Amendment Regulations 2004 (No. 1) can result in significant consequences. While the explanatory statement does not explicitly detail offences or penalties, it is reasonable to infer that non-compliance with maritime levy regulations could lead to financial penalties. Under the Marine Navigation Levy Act 1989, penalties for non-compliance with levy regulations may include fines and other civil or criminal sanctions, as outlined in the principal Act. The specific penalties would be determined based on the severity and frequency of the non-compliance, potentially including maximum penalties prescribed by the Act. It is essential for shipowners and operators to ensure adherence to the amended regulations to avoid any legal repercussions.