Marine Navigation (Regulatory Functions) Levy Regulations (Amendment)

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Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1993 No. 161

EXPLANATORY STATEMENT

STATUTORY RULES 1993 No. 161

Issued by authority of the Minister for Transport and communications

Marine Navigation Levy Act 1989

Marine Navigation Levy Regulations (Amendment)

Marine Navigation (Regulatory Functions) Levy Act 1991

Marine Navigation (Regulatory Functions) Levy Regulations (Amendment)

Subsection 8(1) of the Marine Navigation Levy Act 1989 (the Levy Act) provides that the Governor-General may make regulations for the purposes of subsection 7(2) of the Levy Act.

Subsection 6(1) of the Marine Navigation Levy Collection Act 1989 provides that a levy is payable on the first day of each quarter in respect of a sea-going ship, other than a ship declared by the regulations to be exempt. The rate of the levy is set out in subsection 7(2) of the Levy Act which provides that the rate in relation to a ship is:

(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.

The above rates of the levy were reduced to 59 and 54 cents, 50 and 43 cents, 40 and 30 cents and 31 and 19 cents, with effect from 1 July 1991 by Statutory Rules 1991, No 153 and 1 July 1992 by Statutory Rules 1992, No 199 respectively.

The amendments to the Marine Navigation Levy Regulations will further reduce the rates of the levy to 48 cents, 40 cents, 30 cents and 15 cents respectively. The reduced rates reflect the reduced costs of providing modern navigational services.

Subsection 8(1) of the Marine Navigation (Regulatory Functions) Levy Act 1991 (the Regulatory Functions Act) provides that the Governor-General may make regulations for the purposes of subsection 7(2) of the Regulatory Functions Act.

Subsection 5(1) of the Marine Navigation (Regulatory Functions) Levy Collection Act 1991 provides that a levy is payable on the first day of each quarter in respect of a seagoing ship, other than a ship declared by the regulations to be exempt. The rate of the levy is set out in subsection 7(2) of the Regulatory Functions Act which provides that the rate in relation to a ship is:

(a)       4 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)       3 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)       3 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)       2 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 above rates of the levy were increased to 9 cents, 7 cents, 7 cents and 6 cents with effect from 1 July 1992 by Statutory Rules 1991 No 152.

The Marine Navigation (Regulatory Functions) Levy Regulations will increase the rates of the levy to 13 cents, 13 cents, 12 cents and 11 cents respectively with effect from 30 June 1993. The increases will complete the phasing-in of cost recovery for the marine regulatory activities undertaken by the Australian Maritime safety Authority and will also provide additional revenue to fund increased inspections of foreign ships in Australian ports necessitated by the recent spate of shipping losses.

The combined effect of the changes to the two levies is:

(a)       the first 5,000 tons, down 2 cents;

(b)       for each ton between 5,000 and 20,000 tons an increase of 3 cents;

(c)       for each ton between 20,000 and 50,000 tons - an increase of 5 cents;

(d)       for each ton over 50,000 tons an increase of 1 cent.

 

Overview

The Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1993 No. 161 were enacted to amend the existing regulatory framework governing the levy on sea-going ships as set out in the Marine Navigation (Regulatory Functions) Levy Act 1991. The amendments were introduced to address the evolving costs of providing modern navigational services and to fund additional inspections of foreign ships in Australian ports, a necessity arising from a recent increase in shipping losses. Issued by the authority of the Minister for Transport and Communications, these regulations aim to ensure the financial sustainability of the Australian Maritime Safety Authority's regulatory functions while reflecting current operational costs. The policy objective is to maintain effective maritime safety standards and facilitate cost recovery for marine regulatory activities.

Scope and Application

The Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1993 No. 161 applies to sea-going ships, excluding those declared exempt by regulations, and the levy is payable by the owners or operators of these vessels. The regulations amend the rates of the Marine Navigation (Regulatory Functions) Levy, which is prescribed by the Marine Navigation (Regulatory Functions) Levy Act 1991. The act and its amendments fall within the jurisdictional reach of the Commonwealth, applying across Australia to all sea-going vessels subject to the levy. The amendments to the regulations increase the levy rates to recover costs associated with marine regulatory activities and to fund additional inspections of foreign ships in Australian ports. While the act and its subordinate regulations primarily target the maritime industry, it also indirectly impacts related industries such as shipping and port operations. The changes reflect the evolving costs of providing modern navigational services and the need to address recent maritime safety issues.

Key Provisions

The primary focus of the Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1993 No. 161 is the amendment of levy rates for sea-going ships as outlined in the Marine Navigation Levy Act 1989 and the Marine Navigation (Regulatory Functions) Levy Act 1991. Section 8(1) of both these Acts empowers the Governor-General to make regulations concerning the levies. Under the Marine Navigation Levy Act 1989, the levy is payable quarterly and varies depending on the ship's tonnage, with different rates applied to ships of varying sizes. The amendment reduces these rates to 48 cents, 40 cents, 30 cents, and 15 cents respectively, reflecting decreased costs of modern navigational services. Similarly, the Marine Navigation (Regulatory Functions) Levy Act 1991 stipulates a quarterly levy, again varying with the ship's tonnage. The amendment increases these rates to 13 cents, 13 cents, 12 cents, and 11 cents respectively, facilitating cost recovery for marine regulatory activities and providing additional revenue for enhanced inspections of foreign ships. These regulations impose specific obligations on ship owners and operators to ensure compliance with the amended levy rates. Ship owners must calculate the applicable levy based on their ship’s tonnage and make the required payment on the first day of each quarter. This obligation extends to both domestic and foreign ships operating within Australian waters, ensuring that all vessels contribute to the funding of marine safety and regulatory activities. Failure to comply with these obligations can result in penalties and legal consequences, as outlined in the respective Acts. The Acts do not explicitly detail the penalties for non-compliance; however, under Australian law, failure to comply with a statutory obligation can lead to civil or criminal penalties, depending on the severity and intent of the breach. In cases of civil non-compliance, ship owners may face fines, and in more severe cases, criminal charges may be pursued. These penalties serve as deterrents to ensure adherence to the legislative requirements and the smooth functioning of marine safety and regulatory activities. The exact penalties would typically be governed by other relevant legislation, such as the Commonwealth Crimes Act 1914, which provides for fines and imprisonment for breaches of statutory regulations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.