Marine Navigation Levy Regulations (Amendment) 1998 No. 166
EXPLANATORY STATEMENT
STATUTORY RULES 1998 NO. 166
Issued by the Authority of the Minister for Workplace Relations and Small Business
Marine Navigation Levy Act 1989
Marine Navigation Levy Regulations (Amendment)
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 by the Australian Maritime Safety Authority (AMSA) through a contract with Telstra. The coastal radio service is provided under the provisions of the International Convention for the Safety of Life at Sea, 1974.
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.
The following rates of levy are currently prescribed by the Marine Navigation Levy Regulations pursuant to subsection 7(2) of the Act:
(a) 42 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) 30 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 5,000 tons but not more than 20,000 tons;
(c) 12.5 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) 5.5 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.
The Regulations amend the Marine Navigation Levy Regulations (the Principal Regulations) to decrease the rate of levy.
A review of 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 to fund marine navigation aids) and that this charge should be introduced over a maximum period of 3 years. The Regulations are the first stage of the implementation of the recommendations.
The regulations reduce the rate of the Marine Navigation Levy by 10.327% from 1 July 1998. There is an increase in the Marine Navigation Regulatory Functions Levy which will partially fund the coastal radio services. As both levies are paid in respect of the same categories of ships there will be nil effect on the industry.
Details of the regulations are:
Regulation 1 provides that the regulations commence on 1 July 1998.
Regulation 2 provides for amendment of the regulations as set out in regulation 3.
Regulation 3 provides that the amounts of levy prescribed in regulation 4 are reduced as follows:
* For the purposes of paragraph 7(2)(a) of the Act from 42 cents to 40 cents
* For the purposes of paragraph 7(2)(b) of the Act from 30 cents to 28 cents
* For the purposes of paragraph 7(2)(c) of the Act from 12.5 cents to 11 cents
* For the purposes of paragraph 7(2)(d) of the Act from 5.5 cents to 4 cents
Overview
The Marine Navigation Levy Regulations (Amendment) 1998 No. 166 were enacted under the authority of the Minister for Workplace Relations and Small Business to amend the Marine Navigation Levy Regulations, which were originally established pursuant to the Marine Navigation Levy Act 1989. The Act was introduced to address the need for a levy on trading ships using Australian ports, aimed at recovering the costs associated with navigational aids and the coastal radio service provided by the Australian Maritime Safety Authority. These services are critical for ensuring maritime safety and comply with the International Convention for the Safety of Life at Sea, 1974. The amendment to the regulations followed a recommendation to shift the cost of providing the coastal radio service from the Marine Navigation Levy to the Marine Navigation Regulatory Functions Levy, to be implemented over three years. The Regulations, as the first stage of this shift, reduce the Marine Navigation Levy by 10.327% from 1 July 1998, while increasing the Marine Navigation Regulatory Functions Levy to partially fund the coastal radio services. This amendment ensures that the overall financial impact on the shipping industry remains neutral, as both levies apply to the same categories of ships.
Scope and Application
The Marine Navigation Levy Regulations (Amendment) 1998 No. 166 applies to trading ships using Australian ports, imposing a levy intended to recover the costs of navigational aids and the coastal radio service provided by the Australian Maritime Safety Authority (AMSA) through a contract with Telstra. This levy is implemented under the Marine Navigation Levy Act 1989, which governs the charges on ships entering Australian waters. The regulations set forth the rates for the levy, which are differentiated based on the tonnage of the ship, and are applicable to any trading ship regardless of nationality, as long as it is using Australian ports. These regulations extend to the entire Commonwealth of Australia, reflecting a national approach to the management and funding of maritime safety services. The amendments made by the 1998 Regulations reduce the rates of the Marine Navigation Levy, reflecting a review that recommended the cost of providing the coastal radio service should be collected as part of another levy. The amendments are effective from 1 July 1998, and they reduce the levy rates by a specified percentage across various tonnage brackets.
Key Provisions
The Marine Navigation Levy Regulations (Amendment) 1998 No. 166 introduces amendments to the Marine Navigation Levy Regulations, impacting the rates at which the Marine Navigation Levy is imposed on trading ships using Australian ports. Under section 8(1) of the Marine Navigation Levy Act 1989, the Governor-General has the authority to make regulations concerning the amount of the levy payable. Regulation 3 specifies the reduced rates of the levy, effective from 1 July 1998, reflecting a 10.327% decrease across various tonnage brackets. Specifically, the levy is reduced from 42 cents to 40 cents for the first 5,000 tons, from 30 cents to 28 cents for tonnage between 5,000 and 20,000 tons, from 12.5 cents to 11 cents for tonnage between 20,000 and 50,000 tons, and from 5.5 cents to 4 cents for tonnage exceeding 50,000 tons.
These amendments impose specific obligations on ship owners and operators who use Australian ports. They must ensure compliance with the revised levy rates as stipulated by the amended regulations. This involves calculating the levy based on the new rates and ensuring the correct amount is paid when using Australian ports. The changes necessitate an adjustment in the financial planning for ship owners and operators, as the reduced levy rates might influence their budgeting and operational costs.
Failure to comply with the new levy rates may result in legal consequences. The legislation does not explicitly detail penalties or offences for non-compliance in the provided text; however, it is generally understood that failure to adhere to statutory obligations can lead to financial penalties, legal action, or other administrative consequences. While specific penalties are not mentioned in the text, they typically align with the statutory framework governing the Marine Navigation Levy Act 1989, which may include fines or other civil remedies to enforce compliance.