Marine Navigation (Regulatory Functions) Levy Amendment Regulations 2004 (No. 1) 2004 No. 136
EXPLANATORY STATEMENT
STATUTORY RULES 2004 No. 136
Issued by the Authority of the Minister for Transport and Regional Services
Marine Navigation (Regulatory Functions) Levy Act 1991
Marine Navigation (Regulatory Functions) Levy Amendment Regulations 2004 (No. 1)
The Marine Navigation (Regulatory Functions) Levy is imposed on trading ships using Australian ports to recover the costs of ship safety and regulatory functions provided on behalf of the Australian Government by the Australian Maritime Safety Authority (the Authority).
Subsection 8(1) of the Marine Navigation (Regulatory Functions) Levy Act 1991 (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 (Regulatory Functions) Levy Regulations 1992 prescribes the following levy rates:
(a) 20.5 cents for each of the first 5,000 tons of the ship's tonnage (paragraph 7(2)(a) of the Act);
(b) 20 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) 17 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) 15.5 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 (Regulatory Functions) 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 ship safety and regulatory functions 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 (Regulatory Functions) Levy collected from trading ships using Australian ports.
Details of the regulations are:
Regulation 1 provides that the regulations are named the Marine Navigation (Regulatory Functions) 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 (Regulatory Functions) Levy Regulations 1992.
Schedule 1 provides for the amounts of levy in Regulation 4 to be as follows:
• for paragraph 7(2)(a) of the Act from 20.5 cents to 17 cents
• for paragraph 7(2)(b) of the Act from 20 cents to 17.1 cents
Overview
The Marine Navigation (Regulatory Functions) Levy Amendment Regulations 2004 (No. 1) were enacted to amend the existing Marine Navigation (Regulatory Functions) Levy Regulations 1992. These amendments were made under the authority of the Marine Navigation (Regulatory Functions) Levy Act 1991, enacted by the Commonwealth Parliament. The primary objective of these regulations is to adjust the levy rates in response to anticipated increases in shipping activity and projected efficiency gains within the Australian Maritime Safety Authority’s operations, ensuring the levy remains reflective of the actual costs incurred. The regulations were introduced to address the need for a flexible levy system that can adapt to changes in maritime activity and operational efficiencies, thereby maintaining the financial sustainability of the regulatory functions provided.
These regulations were designed to reduce the levy rates by 15% for certain tonnages of trading ships using Australian ports. This adjustment aims to account for the increased shipping activity anticipated due to higher commodity exports and to incorporate the expected efficiencies in the delivery of ship safety and regulatory services. The regulations ensure that the levy does not increase by more than 15% in any twelve-month period, as stipulated by the Act. The amendments effectively lower the levy rates from 20.5 cents to 17 cents for the first 5,000 tons, and from 20 cents to 17.1 cents for the tonnage exceeding 5,000 but not more than 20,000 tons. These changes came into effect on 1 July 2004.
Scope and Application
The Marine Navigation (Regulatory Functions) Levy Amendment Regulations 2004 (No. 1) pertain to trading ships utilising Australian ports and are enacted under the Marine Navigation (Regulatory Functions) Levy Act 1991. The regulations primarily target the shipping industry, specifically vessels that engage in trading activities within Australian waters, and are designed to adjust the rates of the levy imposed on these vessels. This levy is meant to cover the costs associated with ship safety and regulatory functions provided by the Australian Maritime Safety Authority on behalf of the Commonwealth. The Act applies on a national scale, affecting all ships that enter Australian ports for trading purposes. These regulations do not exclude any particular types of vessels or shipping activities, but rather encompass all trading ships that fall within the jurisdictional reach of Australian waters. The application of the Act is not restricted by subordinate instruments but is subject to the statutory limits specified within the Act itself, such as the maximum allowable increase in levy rates over a 12-month period.
Key Provisions
The Marine Navigation (Regulatory Functions) Levy Amendment Regulations 2004 (No. 1) (the Regulations) amend the existing Marine Navigation (Regulatory Functions) Levy Regulations 1992. Specifically, the Regulations reduce the rates of the levy prescribed in Regulation 4 of the 1992 Regulations. Regulation 4 of the 1992 Regulations sets out the amount of the levy in relation to the tonnage of a trading ship using Australian ports. The adjustments made by the Regulations are primarily in response to the forecast increase in shipping activity in Australian waters due to higher commodity exports over the next two financial years, which will result in increased levy revenue. Additionally, efficiency gains in the delivery of the ship safety and regulatory functions by the Australian Maritime Safety Authority are expected to reduce the demand for levy funds.
The Regulations impose several obligations on the parties they govern. Firstly, trading ships using Australian ports must now pay a reduced levy as per the new rates specified in the amended Regulation 4 of the 1992 Regulations. Secondly, the Australian Maritime Safety Authority must implement these new rates in their billing and collection processes. The Regulations also require that the new rates must not increase the amount applicable under the relevant paragraphs by more than 15% in any period of 12 consecutive months, as stipulated in subsection 8(2) of the Marine Navigation (Regulatory Functions) Levy Act 1991.
The Regulations do not explicitly outline specific offences, penalties, or consequences for non-compliance. However, non-compliance with the Marine Navigation (Regulatory Functions) Levy Act 1991 or the amended regulations could lead to civil or criminal penalties. For example, under section 16 of the Act, a failure to pay the levy when due can result in a debt being owed to the Commonwealth, which can be pursued through the courts. Additionally, section 18 of the Act imposes a penalty equal to the amount of the unpaid levy plus interest and a penalty amount, which can escalate depending on the extent and duration of non-compliance. These potential consequences underscore the importance of adhering to the legislative requirements set forth by the Act and the Regulations.