Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2003 (No. 1) 2003 No. 147
EXPLANATORY STATEMENT
Statutory Rules 2003 No. 147
Issued by the authority of the Minister for Employment and Workplace Relations
Seafarers Rehabilitation and Compensation Levy Collection Act 1992
Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2003 (No. 1)
Section 16 of the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 (the Levy Collection Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed or matters necessary or convenient to be prescribed for carrying out or giving effect to the Act or for facilitating the collection of amounts of levy payable to the Commonwealth under section 8 of the Levy Collection Act.
Section 8 of the Levy Collection Act provides that the levy on a seafarer berth may be recovered by the Commonwealth as a debt due to the Commonwealth.
Subsection 16(2) of the Levy Collection Act provides that the matters that may be prescribed under subsection (1) include providing for the manner of payment to the Commonwealth under section 8.
The Seafarers Rehabilitation and Compensation Levy Collection Regulations 2002 (the Levy Collection Regulations) provide for various matters associated with the collection of a levy imposed by the Seafarers Rehabilitation and Compensation Levy Act 1992 (the Levy Act) on certain maritime employers. The levy provides the funding resources for the Seafarers Safety, Rehabilitation and Compensation Authority (the Seacare Authority) to act in its reserve role as the Fund under the Seafarers Rehabilitation and Compensation Act 1992 (the Seafarers Act). The Fund is the safety net provider of rehabilitation and compensation entitlements under the Seafarers Act.
The Seacare Authority is established under the Seafarers Act. It is not a body corporate and has no infrastructure or staff of its own. Until 11 June 2003, the Department of Employment and Workplace Relations (the Department) was responsible for providing administrative and operational support to the Seacare Authority. On 11 June 2003, amendments to the Seafarers Act and the Safety, Rehabilitation and Compensation Act 1988 transferred to Comcare the Department's responsibility for providing operational support to the Seacare Authority. Comcare is a statutory body, established under the Safety, Rehabilitation and Compensation Act 1988, responsible for workplace health and safety, rehabilitation and compensation in respect of Commonwealth government employees.
The Department had also been performing various financial functions for the Seacare Authority in its role as the Fund under the Seafarers Act. This situation was reflected in Regulation 5 of the Levy Collection Regulations which provided that an employer must pay the levy payable under the Levy Act by cheque payable to the Department or direct credit to the Department's Official Administered Receipts Account (Seafarers).
The levy imposed by the Levy Act is public money and, therefore, must be handled in accordance with the Financial Management and Accountability Act 1997 (the FMA Act). Comcare is not an Agency under the FMA Act. Also the Seacare Authority did not have any financial autonomy of its own. These factors meant that the financial functions performed by the Department did not automatically move to Comcare when operational responsibility transferred on 11 June 2003.
To transfer these financial functions from the Department to the Seacare Authority, which is now assisted by Comcare, the Minister for Finance and Administration recommended the making of regulations prescribing the Seacare Authority as a prescribed Agency for the purposes of section 5 of the FMA Act. Regulations prescribing the Seacare Authority as a prescribed Agency under the FMA Act commenced on 1 July to coincide with the new financial year.
These Regulations amend Regulation 5 of the Levy Collection Regulations to provide that, consistent with prescription of the Seacare Authority as a prescribed Agency under the FMA Act, the levy be paid to the Seacare Authority by cheque payable to the Seacare Authority or by direct credit to the Seacare Authority's account.
The commencement date of the regulations is 1 July 2003.
Overview
The Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2003 (No. 1) were enacted in 2003 to amend the existing Seafarers Rehabilitation and Compensation Levy Collection Regulations 2002. These amendments were introduced to address the transfer of financial responsibilities from the Department of Employment and Workplace Relations to the Seacare Authority, which is now assisted by Comcare. The enactment of these regulations by the Minister for Employment and Workplace Relations under section 16 of the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 aimed to ensure compliance with the Financial Management and Accountability Act 1997. By prescribing the Seacare Authority as a prescribed Agency under the Financial Management and Accountability Act, the regulations sought to facilitate the proper handling and management of the levy funds collected under the Seafarers Rehabilitation and Compensation Levy Act 1992, thereby ensuring these funds are appropriately directed to the Seacare Authority for the provision of rehabilitation and compensation entitlements to seafarers.
Scope and Application
The Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2003 (No. 1) applies to maritime employers who are subject to the Seafarers Rehabilitation and Compensation Levy Act 1992. This Act imposes a levy on these employers to fund the Seafarers Safety, Rehabilitation and Compensation Authority, also known as the Seacare Authority, which provides rehabilitation and compensation entitlements under the Seafarers Rehabilitation and Compensation Act 1992. The regulations specifically modify the manner in which the levy must be paid, aligning with the transfer of financial functions from the Department of Employment and Workplace Relations to the Seacare Authority, with Comcare providing operational support. The regulations, which came into effect on 1 July 2003, prescribe that the levy must now be paid to the Seacare Authority directly, reflecting its new status as a prescribed Agency under the Financial Management and Accountability Act 1997. The changes are designed to streamline the administrative process and ensure that the levy is handled in accordance with financial management laws.
Key Provisions
The Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2003 (No. 1) modify Regulation 5 of the Seafarers Rehabilitation and Compensation Levy Collection Regulations 2002. The primary change is the shift in the entity to which maritime employers must pay the levy. Under Regulation 5, employers are required to pay the levy payable under the Seafarers Rehabilitation and Compensation Levy Act 1992 to the Department of Employment and Workplace Relations by cheque or direct credit to the Department's Official Administered Receipts Account (Seafarers). These Regulations amend that requirement to mandate payment to the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) by cheque or direct credit to the Seacare Authority's account.
The Seacare Authority, established under the Seafarers Rehabilitation and Compensation Act 1992, acts as the Fund providing safety net rehabilitation and compensation entitlements. The Authority does not have its own infrastructure or staff, and until 11 June 2003, the Department of Employment and Workplace Relations provided administrative and operational support. The transfer of operational support to Comcare on 11 June 2003 necessitated changes in financial handling procedures. As the Seacare Authority is now assisted by Comcare, the Regulations ensure that the financial functions previously performed by the Department are now conducted by the Seacare Authority, which has been prescribed as a prescribed Agency under the Financial Management and Accountability Act 1997.
Compliance with these Regulations is mandatory for maritime employers subject to the Seafarers Rehabilitation and Compensation Levy Act 1992. Employers must now direct their levy payments to the Seacare Authority, reflecting the change in administrative and financial management arrangements. Failure to comply with these payment instructions may result in administrative penalties or legal action to recover the owed levy, as the levy is considered public money and must be handled according to the Financial Management and Accountability Act 1997.
Under the Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2003 (No. 1), there are no explicit provisions for offences, penalties, or civil/criminal consequences for breach. However, non-compliance with the levy payment requirements could result in the Commonwealth taking legal action to recover the unpaid levy. Additionally, the levy is public money, and mishandling of public funds can attract penalties under the Financial Management and Accountability Act 1997. The specific penalties for breaches of the FMA Act may vary, but they could include fines and other legal consequences as determined by the relevant authorities.