EXPLANATORY STATEMENT
STATUTORY RULE NO. 257 OF 1984
Issued by the Authority of the Minister of State for Transport
Protection of the Sea (Shipping Levy) Regulations (Amendment)
Section 6 of the Protection of the Sea (Shipping Levy) Act 1981 provides that the levy applicable under the Act may be set by regulation at a rate not exceeding four cents per ton of the tonnage of ships to which the Act applies.
Section 9 provides that the Governor-General may make regulations for the purposes of Section 6.
The new regulations reduce the existing rate of levy provided for under the legislation from 2.0 cents to 1.7 cents per ton of the tonnage of a ship per quarter. The levy provides funds for the maintenance and administration of the National Plan to Combat Pollution of the Sea by Oil. Consideration given to the financial projections of the National Plan indicates that a reduction of 15% in levy collections would support the expenditure program over the next 5 years.
Overview
The Protection of the Sea (Shipping Levy) Regulations (Amendment) Statutory Rule No. 257 of 1984, issued by the Authority of the Minister of State for Transport, amends the rates set under the Protection of the Sea (Shipping Levy) Act 1981. This Act, enacted in 1981 by the Parliament of Australia, was introduced to address the need for a financial mechanism to fund the maintenance and administration of the National Plan to Combat Pollution of the Sea by Oil. The original legislation established a shipping levy to collect funds for this purpose, with the levy rate initially set at 2.0 cents per ton of ship tonnage per quarter. The policy objective of the amendment, reducing the levy rate to 1.7 cents per ton of ship tonnage per quarter, is to adjust the financial projections to ensure the National Plan's expenditure program remains sustainable over the next five years, despite a projected 15% reduction in levy collections.
Scope and Application
The Protection of the Sea (Shipping Levy) Regulations (Amendment) Statutory Rule No. 257 of 1984 applies to entities involved in maritime activities within Australian waters. This includes ships and their operators who are subject to the tonnage-based levy established under the Protection of the Sea (Shipping Levy) Act 1981. The amended regulations specifically modify the rate of the levy, reducing it from 2.0 cents to 1.7 cents per ton of a ship's tonnage per quarter. The new levy rate is intended to provide adequate funding for the maintenance and administration of the National Plan to Combat Pollution of the Sea by Oil, while considering a projected 15% reduction in levy collections over the next five years. The regulations are made under the authority of the Governor-General as stipulated in Section 9 of the Act, and they operate across all Commonwealth waters. There are no exclusions, exemptions, or thresholds explicitly stated in the provided explanatory statement, although the application of the levy may be further defined through subordinate instruments.
Key Provisions
The main operative sections of the Protection of the Sea (Shipping Levy) Regulations (Amendment) Statutory Rule No. 257 of 1984 pertain to the modification of the shipping levy rate under Section 6 of the Protection of the Sea (Shipping Levy) Act 1981. Specifically, Section 6 allows for the levy rate to be set by regulation, not exceeding four cents per ton of the tonnage of ships subject to the Act. The new regulation, as stipulated in Section 9, reduces the existing levy rate from 2.0 cents to 1.7 cents per ton per quarter. This amendment directly affects the financial contributions made towards the maintenance and administration of the National Plan to Combat Pollution of the Sea by Oil, which is the primary purpose of the levy.
The amended regulations impose specific obligations on the parties and entities governed by the Act. Firstly, they require shipowners and operators to adjust their financial contributions in accordance with the new levy rate of 1.7 cents per ton per quarter. This obligation extends to ensuring that all relevant documentation and records reflect the updated levy rate to maintain compliance with the Act. Additionally, relevant authorities must oversee and enforce the correct application of the new levy rate, ensuring that all shipowners and operators are adhering to the updated regulations.
Breaches of the amended regulations can result in various consequences. Under the Protection of the Sea (Shipping Levy) Act 1981, failure to comply with the levy requirements can lead to civil or criminal penalties. The specific offences and penalties are detailed in the Act, though the statutory rule itself does not provide explicit maximum penalties. Generally, non-compliance may result in fines, and in severe cases, criminal charges could be brought against individuals or entities responsible for the breach. It is essential for shipowners and operators to remain aware of their obligations and ensure they are meeting the new levy requirements to avoid potential legal repercussions.