Protection of the Sea (Shipping Levy) Regulations (Amendment) 1995 No. 181
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 181
Issued by the Authority of the Minister for Transport
Protection of the Sea (Shipping Levy) Act 1991
Protection of the Sea (Shipping Levy) Regulations (Amendment)
The Protection of the Sea Levy is paid by commercial ships using Australian ports. The levy, which is estimated to raise $3.2m in 1994-95 and $3.3m in 1995-96, funds the activities of the National Plan to Combat Pollution of the Sea by Oil (Natplan).
Section 6 of the Protection of the Sea (Shipping Levy) Act 1981 (the Act) provides that the rate of levy, in respect of ships in Australian ports, is the rate prescribed per ton of the tonnage of the ship. Section 9 of the Act provides that the GovernorGeneral may make regulations for the purposes of section 6.
On 1 October 1993, the levy was raised from 2.2 to 4 cants per ton. The increase resulted from adoption of recommendations of the Review of the Natplan to fund an equipment procurement program. This program is now largely completed and there is now a need to reduce the levy rate to maintain a balance between funds raised and operational expenditure. On 29 December 1994 the levy was reduced from 4 cents per ton to 3.5 cents per ton.
Subregulation 3(1) of the Protection of the Sea (Shipping Levy) Regulations currently provides that the rate of levy is 3.5 cents per ton. The proposed regulation will reduce the amount of levy to 3.3 cents per ton commencing on 1 July 1995. It is estimated that the lower charges will save the shipping industry about $0.15m per annum.
Details of the proposed regulations are:
Proposed regulation 1 provides that the regulations will commence on 1 July 1995.
Proposed regulation 2 provides that the regulations are amended as provided for in proposed regulation 3.
Proposed regulation 3 provides that the rate of levy will be reduced from 3.5 cents to 3.3 cents per ton of the tonnage of the ship.
Overview
The Protection of the Sea (Shipping Levy) Regulations (Amendment) 1995, No. 181, are statutory rules issued under the authority of the Minister for Transport to amend the existing regulations concerning the shipping levy. The primary objective of the Protection of the Sea (Shipping Levy) Act 1991 is to impose a levy on commercial ships using Australian ports, with the proceeds funding activities related to the National Plan to Combat Pollution of the Sea by Oil (Natplan). The Act initially established a levy rate of 2.2 cents per ton, which was later increased to 4 cents per ton on 1 October 1993 to support an equipment procurement program. Following the completion of this program, the levy was reduced to 3.5 cents per ton on 29 December 1994. The proposed amendment, which is set to take effect on 1 July 1995, further reduces the levy rate to 3.3 cents per ton, aiming to balance the funds raised with the operational expenditure and save the shipping industry approximately $0.15 million annually.
Scope and Application
The Protection of the Sea (Shipping Levy) Regulations (Amendment) 1995 applies to commercial ships using Australian ports, and it is governed under the Protection of the Sea (Shipping Levy) Act 1981. This Act imposes a levy on commercial ships as a means to fund the activities of the National Plan to Combat Pollution of the Sea by Oil (Natplan). The levy is calculated per ton of the ship's tonnage and is a crucial source of revenue for the Natplan. Initially set at 2.2 cents per ton, the levy was increased to 4 cents per ton in October 1993, following recommendations from a review of the Natplan, aimed at financing an equipment procurement program. With the completion of this program, the levy has been adjusted downwards to balance the funds raised with operational expenditure, resulting in a further reduction to 3.3 cents per ton effective from 1 July 1995. These regulations apply across the Commonwealth and aim to ensure the continued effectiveness of the Natplan through adequate funding.
Key Provisions
The main operative sections of the Protection of the Sea (Shipping Levy) Regulations (Amendment) 1995 (No. 181) include proposed regulation 1, which sets the commencement date for the regulations, and proposed regulation 3, which specifies the amendment to the rate of levy. Proposed regulation 1 states that the regulations will commence on 1 July 1995. Proposed regulation 3 modifies the levy rate from 3.5 cents per ton to 3.3 cents per ton, effective from the same commencement date. These provisions are crucial as they adjust the financial contributions required from commercial ships using Australian ports to support the National Plan to Combat Pollution of the Sea by Oil (Natplan).
The obligations imposed by these regulations on parties and entities governed by them are primarily financial. Commercial ships using Australian ports must adhere to the revised levy rate, which is now set at 3.3 cents per ton. This obligation ensures that the necessary funds are raised to support the activities of the National Plan to Combat Pollution of the Sea by Oil. The regulations require ship owners or operators to calculate and remit the correct amount of levy based on the ship's tonnage, in compliance with the new rate stipulated in the amended regulations.
Breaches of these regulations could lead to civil or criminal consequences, although the specific penalties are not detailed within the explanatory statement. However, the regulations are underpinned by the Protection of the Sea (Shipping Levy) Act 1981, which likely includes provisions for enforcement and penalties. Typically, non-compliance with shipping levies can result in fines or other penalties as stipulated by the Act, ensuring that the required funds are collected to support the environmental protection activities outlined in Natplan. The exact penalties and enforcement mechanisms would need to be referred to in the primary Act for detailed understanding.