EXPLANATORY STATEMENT
Select Legislative Instrument 2008 No. 120
Issued under the authority of the Minister for Infrastructure, Transport, Regional Development and Local Government
Protection of the Sea (Shipping Levy) Act 1981
Protection of the Sea (Shipping Levy) Amendment Regulations 2008 (No. 1)
Section 9 of the Protection of the Sea (Shipping Levy) Act 1981 (the Act) provides that the Governor-General may make regulations for the purposes of sections 6 and 7 of the Act. Section 6 of the Act enables the regulations to prescribe the rate of levy and section 7 enables the regulations to prescribe a minimum amount of levy payable for a ship for a quarter.
The Act imposes a levy on ships of 24 metres or more in length and having on board a quantity of ten tonnes or more of oil in bulk as fuel or cargo. The rate of levy is prescribed in the Protection of the Sea (Shipping Levy) Regulations 1982 (the Principal Regulations) for the purposes of section 6 of the Act. Previously a quarterly levy of 7.7 cents per ton of the tonnage of a ship was imposed.
The amending Regulations amended the Principal Regulations to increase the rate of the levy to a quarterly levy of 9.6 cents per ton on all ships to which the Act applies, effective from 1 July 2008. The minimum levy prescribed in the Principal Regulations for the purposes of section 7 remains at its current level of $10. It is estimated that an additional $10 million will be collected in 2008-2009 under the amended Regulations.
The levy is payable once in every quarter that a ship to which the Act applies enters an Australian port and is used to fund the operations and management of the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances (the National Plan). More recently the levy is also being used to fund the National Maritime Emergency Response Arrangements (NMERA) with costs recovered from industry under the amended Regulations.
The main purpose of the NMERA is to enhance current response arrangements under the National Plan by making available Emergency Towage Vessels (ETVs) at strategic locations around Australia to respond to significant threats to the Australian marine environment, such as ships running aground. There is one dedicated ETV operating out of Cairns. A number of other vessels which perform normal towage within ports are also available to be called upon in the case of a major incident.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
No formal consultation was undertaken in relation to these specific amendments. However, industry stakeholders were extensively consulted during the development and implementation of the NMERA and in relation to the management of levy arrangements, including the proposed increase in the levy rate. Industry stakeholders indicated strong support for these arrangements as the increased costs to industry arising from the levy increase are considered to be minor when compared with the overall operating costs of a ship.
The Regulations commenced on 1 July 2008.
Overview
The Protection of the Sea (Shipping Levy) Amendment Regulations 2008 (No. 1) were enacted to adjust the levy rates for ships subject to the Protection of the Sea (Shipping Levy) Act 1981. These regulations, issued under the authority of the Minister for Infrastructure, Transport, Regional Development and Local Government, aim to enhance the funding available for maritime safety and environmental protection in Australia. The primary policy objective is to increase the shipping levy from 7.7 cents to 9.6 cents per ton for ships entering Australian ports, which will support the operations and management of the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, as well as fund the National Maritime Emergency Response Arrangements. The amendments reflect industry feedback and were implemented to ensure that the necessary resources are available to respond to significant maritime incidents and to protect the marine environment.
Scope and Application
The Protection of the Sea (Shipping Levy) Amendment Regulations 2008 (No. 1) apply to ships that are 24 metres or more in length and have on board a quantity of ten tonnes or more of oil in bulk as fuel or cargo, thereby subjecting these vessels to the provisions of the Protection of the Sea (Shipping Levy) Act 1981. The Act operates within the Australian jurisdiction, applying to all ships entering Australian ports that meet the specified criteria. The levy serves to fund the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, as well as the National Maritime Emergency Response Arrangements (NMERA). The Regulations amend the rate of the quarterly levy from 7.7 cents to 9.6 cents per ton of the ship's tonnage, effective from 1 July 2008, while maintaining the minimum levy amount at $10. This amendment is part of a broader legislative framework that does not exclude any specific entities or industries, thereby ensuring a consistent application across relevant maritime activities within Australia.
Key Provisions
The Protection of the Sea (Shipping Levy) Amendment Regulations 2008 (No. 1) primarily focus on adjusting the rate of the levy imposed on ships under the Protection of the Sea (Shipping Levy) Act 1981. Specifically, Section 9 of the Act empowers the Governor-General to make regulations regarding the rate of levy and the minimum amount payable for a ship for a quarter, as stipulated in Sections 6 and 7 respectively. The key amendment here is the increase in the quarterly levy rate from 7.7 cents per ton to 9.6 cents per ton for all eligible ships. This increase is effective from 1 July 2008, as outlined in the Regulations. Importantly, the minimum quarterly levy remains at $10, unchanged from the Principal Regulations. This levy applies to ships that are 24 metres or more in length and carry ten tonnes or more of oil in bulk as fuel or cargo.
The entities governed by these Regulations—primarily shipping companies operating vessels that meet the specified criteria—are required to comply with the increased levy rate. This means that every quarter, when such ships enter an Australian port, the shipping companies must pay the revised levy. The funds collected from this levy are allocated towards the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, as well as towards the National Maritime Emergency Response Arrangements (NMERA). The NMERA aims to improve current response measures by providing emergency towage vessels at strategic locations to address significant threats to the marine environment.
Failure to comply with the provisions of these Regulations can result in legal consequences. Although specific penalties are not detailed in the explanatory statement, breaches of shipping regulations typically result in enforcement actions by relevant authorities. These actions could include fines, legal proceedings, or other sanctions under maritime laws. The increased levy rate, while intended to be manageable for the industry, underscores the importance of adherence to these regulatory requirements to support environmental protection efforts and emergency response capabilities.
The legislative amendments were made without formal consultation specifically for the levy rate increase, but extensive consultations were held with industry stakeholders during the broader development and implementation phases of the NMERA and levy arrangements. The industry's support for the changes indicates an understanding of the necessity for adequate funding to support these critical environmental and emergency response initiatives. The Regulations have been in effect since 1 July 2008, reinforcing the commitment to maritime safety and environmental protection through increased financial contributions from the shipping industry.