EXPLANATORY STATEMENT
Select Legislative Instrument 2006 No. 339
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 2006 (No. 1)
The Seafarers Rehabilitation and Compensation Authority (‘the Seacare Authority’) administers the scheme for rehabilitation and workers’ compensation for certain maritime employees. The Seafarers Safety Net Fund (‘the Fund’) is the ‘nominal insurer’ for this scheme in the event that an employer cannot be identified or otherwise becomes insolvent or bankrupt.
From 1 July 2002, scheme employers were required under sections 4 and 6 of the Seafarers Rehabilitation and Compensation Levy Act 1992 (‘the Levy Act’) to pay a levy to build up the Fund’s reserves. The Seafarers Rehabilitation and Compensation Levy Collection Act 1992 (‘the Collection Act’) provides for the collection of levy imposed by the Levy Act. Section 6 of the Collection Act requires scheme employers to provide returns containing information on the number of seafarer berths on each prescribed ship or number of seafarers engaged by a relevant employer and such other relevant information relating to those berths.
Subsection 16(1) of the Collection Act provides that the Governor-General may make regulations, not inconsistent with that Act, prescribing all matters required or permitted by that Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to that Act.
The Seafarers Rehabilitation and Compensation Levy Collection Regulations 2002 (‘the Principal Regulations’) currently prescribe the Australian Maritime Industry Compensation Agency Ltd (AMICA) as the levy collector for the purposes of sections 4 and 6 of the Levy Act. The Principal Regulations also provide that the returns and information required under section 6 of the Collection Act be given to the prescribed levy collector.
AMICA’s services will terminate upon the expiry of its contract on 14 January 2007. Arrangements have been made for the responsibilities held by AMICA, including levy collection, to transfer to the Seacare Authority.
The purpose of the Regulations is to provide that, from 14 January 2007, the levy collector will be the Seacare Authority. The Regulations would also provide the contact details of the Seacare Authority for the purpose of receiving the returns required by section 6 of the Collection Act.
Relevant stakeholders in the maritime industry and government agencies including the Seacare Authority and Comcare have been consulted in the making of these proposed Regulations.
Details of the Regulations are set out in the Attachment.
The Regulations commence on 14 January 2007. The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
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ATTACHMENT
Details of the Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2006 (No. 1)
Regulation 1 – Name of Regulations
This regulation provides that the title of the Regulations is the Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2006 (No. 1)
Regulation 2 – Commencement
This regulation provides that the Regulations commence on 14 January 2007.
Regulation 3 – Amendment of Seafarers Rehabilitation and Compensation Levy Collection Regulations 2002
This regulation provides that the Seafarers Rehabilitation and Compensation Levy Collection Regulations 2002 are to be amended as set out in Schedule 1.
Schedule 1 – Amendments
Item 1 – Regulation 3, definition of levy collector
This item amends Regulation 3 to provide that the levy collector will be the Seafarers Safety, Rehabilitation and Compensation Authority (also known as the Seacare Authority).
Item 2 – Subregulation 4(2)
This item amends Subregulation 4(2) to update the contact details of the levy collector to whom returns and information required under section 6 of the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 will be given.
Overview
The Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2006 (No. 1) were introduced to address the impending termination of the Australian Maritime Industry Compensation Agency Ltd's (AMICA) contract as the levy collector, effective from 14 January 2007. This legislative instrument, issued under the authority of the Minister for Employment and Workplace Relations, aims to ensure a seamless transition of responsibilities, including levy collection, from AMICA to the Seacare Authority. The policy objective is to maintain the continuity of the levy collection process and the administration of the Seafarers Safety Net Fund, which serves as the 'nominal insurer' for the rehabilitation and workers' compensation scheme for maritime employees. The Regulations, which are set to commence on 14 January 2007, are designed to update the contact details for the levy collector and establish the Seacare Authority as the new entity responsible for levy collection, thereby ensuring the ongoing functionality of the maritime compensation scheme.
Scope and Application
The Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2006 (No. 1) apply to employers within the maritime industry who are obligated to pay a levy under the Seafarers Rehabilitation and Compensation Levy Act 1992. These employers must provide returns detailing the number of seafarer berths on each prescribed ship or the number of seafarers employed, along with other relevant information. This regulation is pertinent to the Seafarers Rehabilitation and Compensation Authority, which administers the rehabilitation and workers' compensation scheme for maritime employees and serves as the nominal insurer through the Seafarers Safety Net Fund. The Amendment Regulations are designed to facilitate the transition of levy collection responsibilities from the Australian Maritime Industry Compensation Agency Ltd (AMICA) to the Seacare Authority, effective from 14 January 2007, upon the expiry of AMICA’s contract. The Regulations also include updated contact details for the Seacare Authority to ensure that all required returns are submitted to the appropriate entity. These Regulations apply nationally across Australia, ensuring a consistent approach to levy collection and administration within the maritime industry.
Key Provisions
The Seafarers Rehabilitation and Compensation Levy Collection Amendment Regulations 2006 (No. 1) (the "Regulations") modify the Seafarers Rehabilitation and Compensation Levy Collection Regulations 2002 (the "Principal Regulations"). These amendments are significant as they transition the responsibility of levy collection from the Australian Maritime Industry Compensation Agency Ltd (AMICA) to the Seafarers Safety, Rehabilitation and Compensation Authority (the "Seacare Authority") from 14 January 2007. Section 6 of the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 ("the Collection Act") requires employers to provide returns detailing the number of seafarer berths and other relevant information. Under the Regulations, these returns will now be submitted directly to the Seacare Authority, as per the updated contact details provided in Subregulation 4(2).
The Regulations impose specific obligations on employers who are part of the scheme. As per Section 4 of the Levy Act, these employers are required to pay a levy to build up the Seafarers Safety Net Fund's reserves. The updated contact details for the Seacare Authority will be critical for employers to ensure timely and accurate submissions of these returns. The Regulations ensure that all parties involved are aware of the new contact points and the new levy collector, thus maintaining the continuity of the levy collection process.
Failure to comply with the requirements of the Collection Act and the Regulations could result in penalties. Although the specific penalties are not detailed in the Regulations, non-compliance with the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 could lead to civil or criminal consequences. Typically, penalties for such breaches can include fines, which may vary depending on the nature and severity of the breach. It is essential for employers to adhere to the new provisions to avoid any potential legal repercussions. The Regulations are designed to ensure that the transition from AMICA to the Seacare Authority is smooth and that the fund remains adequately supported.