Marine Navigation Levy Regulations (Amendment) 1994 No. 469
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 469
Issued by the Authority of the Minister for Transport
Marine Navigation Levy Act 1989
Marine Navigation Levy Regulations (Amendment)
Subsection 7(2) of the Marine Navigation Levy Act 1989 (the Act) provides:
"For the purposes of this Act, each of the following rates is a levy rate in relation to a ship:
(a) 63 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) 53 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) 43 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) 33 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.
Subsection 8(1) of the Act provides that the Governor-General may make regulations for the purposes of subsection 7(2).
Regulation 4 of the Marine Navigation Levy Regulations (S.R. 1991 No. 153 as amended by 1992 No. 199, 1993 No. 162 and 1994 No. 206) provides:
4. (1) For the purposes of paragraph 7 (2)(a) of the Act, 45 cents is prescribed.
(2). For the purposes of paragraph 7 (2)(b) of the Act, 36 cents is prescribed.
(3) For the purposes of paragraph 7 (2)(c) of the Act. 27 cents is prescribed.
(4) For the purposes of paragraph 7 (2)(d) of the Act, 12 cents is prescribed.
The proposed regulation will. in respect of payments for the quarters that commence on 1 January 1995 and 1 April 1995, temporarily reduce the prescribed amounts to 42 cents, 33.5 cents, 25 cents and 11 cents respectively, reflecting the reduced costs of providing modern navigational aids. It is estimated that the lower charges will save the shipping industry about $1.25 million for the two quarters that they are in force.
Details of the regulations are:
Regulation 1 provides that the regulations commence on 1 January 1995.
Regulation 2 provides for amendment of the regulations as set out in proposed regulations 3 and 4.
Regulation 3 provides for the addition of a definition of the term "quarter".
Regulation 4 provides for a reduction in the rate of levy for the quarters beginning on 1 January 1995 and 1 April 1995.
Overview
The Marine Navigation Levy Regulations (Amendment) 1994 No. 469 was enacted to amend the Marine Navigation Levy Regulations 1991 in response to changes in the cost of providing modern navigational aids. This amendment was made under the authority of the Marine Navigation Levy Act 1989, which was enacted by the Australian Parliament. The policy objective of the amendment was to reflect the reduced costs of providing navigational aids by temporarily reducing the prescribed levy rates for specific quarters, thereby providing cost relief to the shipping industry. The regulation aimed to save the industry approximately $1.25 million over the two quarters that the lower charges were in effect.
Scope and Application
The Marine Navigation Levy Regulations (Amendment) 1994 No. 469 applies to the rates of the Marine Navigation Levy imposed on ships in Australia, as prescribed under the Marine Navigation Levy Act 1989. This Act governs the levy rates based on the ship's tonnage, with different rates for ships of varying sizes. The regulations are designed to modify the existing rates temporarily to reflect reduced costs of providing modern navigational aids. The changes apply to ships for the quarters beginning on 1 January 1995 and 1 April 1995, thus affecting all ships that fall within the prescribed tonnage categories during these periods. The amendments are limited to these two quarters, after which the original rates will resume. The changes are estimated to save the shipping industry approximately $1.25 million during the time they are in effect. The regulations cover all ships operating within Australian waters, impacting the shipping industry broadly.
Key Provisions
The Marine Navigation Levy Regulations (Amendment) 1994 No. 469 amends the existing Marine Navigation Levy Regulations to adjust the levy rates for ships, effective for the quarters starting on 1 January 1995 and 1 April 1995. The principal changes are introduced under Regulation 4, which modifies the rates prescribed for different tonnage brackets as stipulated in subsection 7(2) of the Marine Navigation Levy Act 1989. For the initial 5,000 tons of a ship's tonnage, the levy is reduced from 45 cents to 42 cents; for tonnage exceeding 5,000 but not more than 20,000 tons, the levy decreases from 36 cents to 33.5 cents; for tonnage over 20,000 but not more than 50,000 tons, it falls from 27 cents to 25 cents; and for tonnage exceeding 50,000 tons, the levy is reduced from 12 cents to 11 cents.
Under the amended regulations, ship owners and operators are required to calculate and remit the adjusted levy rates for the specified quarters in line with the new prescribed amounts. This means that for each ton of their ship's tonnage falling within the specified brackets, they must pay the reduced levy amounts as outlined in the new Regulation 4. This adjustment is intended to reflect the decreased costs associated with providing modern navigational aids, thereby providing a financial relief to the shipping industry.
Failure to comply with the new levy rates as prescribed by the amended regulations may result in legal consequences. The Marine Navigation Levy Act 1989 provides for penalties for non-compliance, including fines that can be substantial. Specifically, the Act stipulates that any person who fails to pay a levy when due can be liable to a penalty that is equal to the amount of the levy unpaid. This penalty is intended to ensure that all parties adhere to the regulatory requirements set forth by the Act and its subsidiary regulations.
The amended regulations also carry a provision that they will only be in effect for the quarters beginning on 1 January 1995 and 1 April 1995, as stated in Regulation 1. Any further amendments or extensions beyond these dates would require additional legislative action. This temporary nature of the levy adjustment underscores the intent to provide interim relief while the underlying costs are being reassessed.