EXPLANATORY STATEMENT
Issued by the Authority of the Minister for Shipping and
Subject - Protection of the Sea (Shipping Levy) Act 1981
Protection of the Sea (Shipping Levy) Regulations (Amendment)
The Protection of the Sea (Shipping Levy) Act 1981 (the Act) imposes a quarterly levy on commercial ships calling at an Australian port with more than 10 tonnes of oil on board. Levy funds are used to purchase and maintain pollution-combat equipment which is strategically located around the Australian coastline. Funds are also used to meet administrative costs and the training of personnel in oil pollution response techniques.
Section 6 of the Act provides that the rate of levy for a quarter is such rate as is prescribed, being a rate not exceeding 4 cents per ton of the tonnage of the ship. The Protection of the Sea (Shipping Levy) Regulations (the Regulations) prescribe the levy for the purposes of the Act.
A levy of 2.0 cents was set in 1981 when the Regulations first came into force and was reduced to 1.7 cents in 1984 as the levy collected was surplus to expenditure.
The surplus funds acquired in the first 3 years of the levy have now run down and the levy no longer meets current and projected equipment and operational costs.
The Regulations are therefore amended to raise the level of levy payable from 1.7 cents to 2.2 cents per ton of the tonnage of a ship.
Details of the amending Regulations are as follows:
Regulation 1 provides that the amending Regulations commence on 1 January 1991.
Regulations 2 and 3 amend the Regulations by increasing the rate of levy from 1.7 cents to 2.2 cents and by specifying 1 January 1991 as the date on which the new levy comes into force.
Overview
The Protection of the Sea (Shipping Levy) Regulations (Amendment) was introduced to address the issue of inadequate funding for the purchase and maintenance of pollution-combat equipment, as well as administrative costs and training personnel in oil pollution response techniques. The 1981 Act initially imposed a quarterly levy on commercial ships with more than 10 tonnes of oil on board calling at Australian ports, with the funds intended for these purposes. Over time, however, the initial levy rate set in 1981 and subsequently reduced to 1.7 cents per ton in 1984 proved insufficient to cover the costs, necessitating an amendment. The regulations, authorised by the Minister for Shipping, aim to increase the levy rate to 2.2 cents per ton of the tonnage of a ship, effective from 1 January 1991, in order to ensure sufficient funding for the intended purposes.
Scope and Application
The Protection of the Sea (Shipping Levy) Act 1981 applies to all commercial ships that enter an Australian port with more than 10 tonnes of oil on board. The Act imposes a quarterly levy on these ships, which is used to fund the acquisition and maintenance of pollution-combat equipment strategically located along the Australian coastline, as well as covering administrative costs and training personnel in oil pollution response techniques. The geographic reach of the Act is national, encompassing all ports within Australia’s jurisdiction. The Act extends its application through the Protection of the Sea (Shipping Levy) Regulations, which detail the rate and implementation of the levy. Initially set at 2.0 cents per ton in 1981, the levy was later reduced to 1.7 cents in 1984 due to surplus funds. However, with the depletion of these surplus funds and the rising costs of equipment and operations, the Regulations have been amended to increase the levy to 2.2 cents per ton, effective from 1 January 1991. This amendment ensures the fund can meet current and projected needs.
Key Provisions
The Protection of the Sea (Shipping Levy) Act 1981 (the Act) includes provisions that impose a levy on commercial ships calling at Australian ports, which must carry more than 10 tonnes of oil on board (s.6). The levy is intended to fund the purchase and maintenance of pollution-combat equipment strategically placed around the Australian coastline, as well as to cover administrative costs and the training of personnel in oil pollution response techniques. The rate of this levy is set by the Protection of the Sea (Shipping Levy) Regulations (the Regulations) and cannot exceed 4 cents per ton of the ship’s tonnage (s.6). Initially set at 2.0 cents in 1981, the levy was reduced to 1.7 cents in 1984 due to surplus funds. However, with the depletion of these funds and the rising costs of equipment and operations, the levy is being increased to 2.2 cents per ton.
The Act imposes certain obligations on the parties it governs. Shipowners and operators of commercial ships that call at Australian ports and carry more than 10 tonnes of oil must comply with the levy requirements set out in the Regulations (s.6). This includes ensuring that the correct levy is calculated and paid for each quarter based on the ship’s tonnage. The levy must be paid regardless of whether the ship has discharged any oil or caused pollution, emphasising the preventative and preparedness nature of the funding mechanism. The collected funds are to be used specifically for the purposes outlined in the Act, ensuring transparency and accountability in their use.
The Act also outlines potential consequences for non-compliance. While the explanatory statement does not detail specific offences, it is implied that failure to comply with the levy requirements could result in legal action under the Act. This may include civil penalties for non-payment or underpayment of the levy, as well as potential criminal charges if the non-compliance is deemed to be wilful or negligent. The exact penalties are not specified in the explanatory statement but are typically outlined in the Act itself or in subsidiary legislation. The regulatory authority responsible for enforcing the Act would have the power to impose these penalties, ensuring that the levy is collected effectively to meet its intended purposes.