Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1996 No. 130
EXPLANATORY STATEMENT
STATUTORY RULES 1996 No. 130
Issued by the Authority of the Minister for Transport and Regional Development
Marine Navigation (Regulatory Functions) Levy Act 1991
Marine Navigation (Regulatory Functions) Levy Regulations (Amendment)
Subsection 7(2) of the Marine Navigation (Regulatory Functions) Levy Act 1991 (the Act) provides:
"For the purposes of this Act, each of the following rates is a levy rate in relation to a ship..
(a) 4 cents, or such other amount 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 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 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 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 (Regulatory Functions) Levy Regulations (S. R. 1992 No. 198 as amended by 1993 No. 161) provides:
4. (1) For the purposes of paragraph 7(2)(a) of the Act, 13 cents is prescribed.
(2) For the purposes of paragraph 7(2)(b) of the Act, 13 cents is prescribed
(3) For the purposes of paragraph 7(2)(c) of the Act, 12 cents is prescribed
(4) For the purposes of paragraph 7(2)(d) of the Act, 11 cents is prescribed.
The proposed regulation will in effect increase the prescribed amounts of levy applied under paragraph (a) to 14.5 cents, paragraph (b) to 14 cents and paragraph (d) to 11.5 cents. There will be no increase in the levy applied under paragraph (c). The increased rate of levy represents an average increase of 6.4% and is expected to raise an additional amount of $880,000.00 per annum.
Details of the proposed regulations are:
Proposed regulation 1 provides that the regulations commence on 1 July 1996.
Proposed regulation 2 provides for amendment of the regulations as set out in regulation 3.
Proposed regulation 3 provides for the increased amount of the levy to be applied from 1 July 1996.
Overview
The Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1996 No. 130 was enacted to amend the existing regulations under the Marine Navigation (Regulatory Functions) Levy Act 1991. This legislation was introduced to address the need to adjust the levy rates applicable to ships in order to accommodate inflationary pressures and to generate additional revenue. The enacting body was the Parliament of Australia, acting through the Minister for Transport and Regional Development. The policy objective of the amendments is to ensure that the levy remains a fair and effective means of funding the regulatory functions of the Australian Maritime Safety Authority, while also providing an adequate revenue stream to support these activities.
The amendments proposed in the 1996 regulations aimed to increase the prescribed levy amounts for certain tonnages of ships, reflecting a 6.4% average increase. This adjustment was expected to generate an additional $880,000 annually. The new rates were set to take effect from 1 July 1996, with the regulations themselves coming into force on the same date. This legislative update was intended to maintain the financial sustainability of the regulatory framework governing marine navigation in Australia.
Scope and Application
The Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1996 No. 130 amends the Marine Navigation (Regulatory Functions) Levy Regulations 1992, which were made under the Marine Navigation (Regulatory Functions) Levy Act 1991. The Act applies to ships and their owners, operators, or charterers, with a focus on the imposition of a levy for regulatory functions related to marine navigation in Australia. The levy is based on the tonnage of the ship and is designed to fund the regulatory activities of the Commonwealth in relation to marine navigation. The increased rates of levy apply from 1 July 1996 and represent an average increase of 6.4%, with the additional revenue expected to amount to $880,000 per annum. The amendment does not change the scope of the Act but adjusts the financial burden to account for inflation and operational costs. The Act applies to ships registered in Australia or operated by Australian entities, with no specified exclusions beyond what is outlined in the original Act. The amendment does not introduce new exclusions but rather modifies the rates specified in the existing regulations.
Key Provisions
The key provisions of the Marine Navigation (Regulatory Functions) Levy Regulations (Amendment) 1996 No. 130 involve amendments to the prescribed levy rates for ships as outlined in the Marine Navigation (Regulatory Functions) Levy Act 1991 (the Act). Section 7(2) of the Act sets out the different rates for levy based on a ship's tonnage, while subsection 8(1) allows for the Governor-General to make regulations regarding these rates. Regulation 4 of the existing Marine Navigation (Regulatory Functions) Levy Regulations currently prescribes specific amounts for these levies. The proposed amendments, as detailed in the explanatory statement, will increase these prescribed amounts for certain categories of ship tonnage.
Under the proposed amendments, the levy rates will be adjusted to 14.5 cents for the first 5,000 tons, 14 cents for each ton between 5,000 and 20,000 tons, 12 cents for each ton between 20,000 and 50,000 tons, and 11.5 cents for each ton above 50,000 tons. These amendments are intended to take effect from 1 July 1996, as stipulated in the proposed regulation 1. Regulation 2 will facilitate the formal amendment process, while regulation 3 will implement the new levy rates from the specified date.
The obligations imposed by these regulations primarily concern ship owners and operators who must adhere to the new levy rates when making payments. These entities are required to calculate and remit the appropriate levy based on the updated rates. The regulations impose a clear financial obligation to ensure compliance with the amended rates, which is essential for the continued regulation and oversight of marine navigation functions in Australia.
Failure to comply with the new levy rates could result in legal consequences. While specific penalties are not detailed in the explanatory statement, breaches of regulations under the Marine Navigation (Regulatory Functions) Levy Act 1991 could lead to enforcement actions, fines, or other penalties as prescribed by the Act. It is important for all affected parties to be aware of and comply with these new rates to avoid any potential legal ramifications.