Security of Critical Infrastructure (Naval shipbuilding precinct) Amendment (LIN 24/006) Rules 2024

Administered by Department of Home Affairs

Legislation au F2024L00170 Rules Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Minister for Home Affairs and the Minister for Cyber Security

Security of Critical Infrastructure Act 2018

Security of Critical Infrastructure (Naval shipbuilding precinct) Amendment (LIN 24/006) Rules 2024

1         The instrument, the Security of Critical Infrastructure (Naval shipbuilding precinct) Amendment (LIN 24/006) Rules 2024 (LIN 24/006), is made under section 61 of the Security of Critical Infrastructure Act 2018 (the Act).

2         Subsection 33(3) of the Acts Interpretation Act 1901 relevantly provides that a power to make a legislative instrument includes a power to repeal, rescind, revoke, amend, or vary that instrument in the same manner, and subject to the same conditions, as the power to make the instrument.

3         The instrument commences on the day after registration on the Federal Register of Legislation, and is a legislative instrument for the Legislation Act 2003 (the Legislation Act).

Purpose

4         The instrument amends the Security of Critical Infrastructure (Naval shipbuilding precinct) Rules (LIN 23/007) 2023 (the Rules) to prescribe that for paragraph 9(1)(f) of the Act, an asset is a critical infrastructure asset if it is located within the perimeter of an area identified on the map in Schedule 1 to LIN 23/007, which depicts the Osborne Naval Shipyard (ONS) precinct on Lefevre Peninsula, South Australia. Additionally, the asset must be used for the primary purposes of naval shipbuilding or sustainment within ONS.

5         The instrument amends the Rules to prescribe that for subsection 12L(23) of the Act an entity is a responsible entity of a critical infrastructure asset identified in subsection 4(1) if it is an entity that has been granted exclusive control and use, through licence or other contractual arrangement, to the asset or the area where the asset resides. The entity therefore holds primary responsibility to fulfil the obligations under Part 2A of the Act for that asset or area.  The instrument also provides that in all other circumstances, the responsible entity will be Australian Naval Infrastructure Pty Ltd (ABN 45 051 762 639) which is the landlord for the premises at ONS.

6         The instrument amends the Rules to repeal Schedule 1 and substitute a revised map of ONS which delineates the perimeter of the shipyard (the naval shipbuilding precinct).

Consultation

7         The Department of Home Affairs (the Department) engaged relevant industry stakeholders from the naval shipbuilding sector in a consultation process to design the rules underpinning the risk management program.

 

 

 

 

8         Before making this instrument, the Minister in accordance with section 30AL of the Act:

  • published a notice on the Department’s website:
    • setting out the draft rules made for the purposes of Part 2A of the Act; and
    • inviting persons to make submissions to the Minister about the draft rules within a period not shorter than 28 days (the notice specified a period of 28 days, commencing on 6 November 2023 and ending on 4 December 2023); and
  • gave a copy of the notice to each State and Territory First Minister; and
  • considered all submissions received.

9         The Minister was satisfied that appropriate consultation was undertaken in accordance with section 17 of the Legislation Act because:

  • persons likely to be affected by the instrument had an adequate opportunity to comment on the draft instrument; and
  • the draft instrument was initially developed and subsequently refined by drawing upon the knowledge and expertise of stakeholders within the naval shipbuilding sector, including:
    • owners and operators of assets used for the purposes of naval shipbuilding and sustainment within ONS; and
    • the Department of Defence to the extent that the assets relate to the defence industry sector.

10     The Office of Impact Analysis (OIA) was consulted and considered that the instrument dealt with matters of a minor nature and no regulatory impact statement was required. The OIA reference number is OIA23-03744.

Details of the instrument

11     Details of the instrument are set out in Attachment A. 

Parliamentary scrutiny etc. 

12     The instrument is subject to disallowance under section 42 of the Legislation Act. A Statement of Compatibility with Human Rights has been prepared in relation to the instrument, and provides that to the extent that the instrument impacts human rights, the impact is reasonable and proportional. The Statement is included at Attachment B.

13     The instrument was made by the Minister for Home Affairs in accordance with the requirements of sections 30ABA, 30AL and 61 of the Act.  

14     In particular, before making the instrument, in accordance with subsection 30AH(6) of the Act, the Minister had regard to the following matters:

  • any existing regulatory systems of the Commonwealth, a State or a Territory that would impose obligations on a responsible entity for an asset within a naval shipbuilding precinct (paragraph 30AH(6)(a));
  • the costs that would likely be incurred by a responsible entity for an asset within a naval shipbuilding precinct in complying with the rules (paragraph 30AH(6)(b));
  • the reasonableness and proportionality of the requirement in the rules in relation to the purposes referred to in paragraph 30AH(1)(b) (paragraph 30AH(6)(c)).


Attachment A

Details of the Security of Critical Infrastructure (Naval shipbuilding precinct) Amendment (LIN 24/006) Rules 2024

Section 1 Name

This section provides that the name of the instrument is the Security of Critical Infrastructure (Naval shipbuilding precinct) Amendment (LIN 24/006) Rules 2024 (LIN 24/006). 

Section 2 Commencement

The instrument commences on the day after it is registered on the Federal Register of Legislation.

Section 3 

Section 3 of the instrument provides that Schedule 1 amends the Security of Critical Infrastructure (Naval shipbuilding precinct) Rules (LIN 23/007) 2023 (the Rules) under section 61 of the Security of Critical Infrastructure Act 2018 (the Act).

Subsection 33(3) of the Acts Interpretation Act 1901 relevantly provides that a power to make a legislative instrument includes a power to repeal, rescind, revoke, amend, or vary that instrument in the same manner, and subject to the same conditions, as the power to make the instrument.

Schedule 1—Amendments

Item [1] Section 4

This item amends the Rules by repealing current section 4 of the instrument, and substituting a revised section 4.

The revised subsection 4(1) of the instrument prescribes, for paragraph 9(1)(f) of the Act, that an asset is a critical infrastructure asset if it is:

  • located within an area identified on the map in Schedule 1, which delineates the perimeter of the Osborne Naval Shipyard (ONS), which is located on the Lefevre Peninsula, South Australia; and
  • used for the primary purposes of naval shipbuilding or sustainment within ONS.

The revised subsection 4(2) prescribes, for subsection 12L(23) of the Act, that the responsible entity for a critical infrastructure asset mentioned in subsection 4(1) is the entity which has been granted exclusive control and use of the asset or the area where the asset is located, through a licence or other contractual arrangement. In effect, this means that the entity, as the responsible entity for the asset will hold primary responsibility to fulfil the obligations under Part 2A of the Act for that asset or area where the asset is located for such time as the licence or other contractual arrangement remains in force (the licence or other contractual arrangement should specify details and terms of the commercial relationship between the responsible entity and the owner of the asset or landlord of the area). Paragraph 4(2)(b) provides that in the instance that exclusive control and use of an area or asset within ONS has not been granted to another entity, then Australian Naval Infrastructure Pty Ltd (ABN 45 051 762 639) will be the responsible entity for that asset. In practice, the industry stakeholders who become  responsible entities at ONS, through licence or other contractual arrangements in line with section 4(2)(a), should not assign their regulatory obligations under Part 2A of the Act to any third parties without prior consultation with, and consent of, the Commonwealth Regulator.

ONS is a multi-user hub, with multiple entities operating there for the purposes of naval shipbuilding and sustainment. It is foreseeable that the composition of entities that operate ONS may differ from time to time. The revised statute reflects the operating nature of ONS, ensuring that the most appropriate entity is the responsible entity for each critical infrastructure asset, and that the critical infrastructure risk management plan is adopted and complied with, as necessary and appropriate.

Item [2] Schedule 1

This item repeals Schedule 1 to the Rules, including the previous map of the ONS under Schedule 1, and substitutes that with an updated map of ONS which only delineates the perimeter of the shipyard. An asset is a critical infrastructure asset if it is located within the perimeter of the area identified on the map, in Schedule 1 of LIN 24/006. A consequential amendment to the amendment by item [1] is the removal of the coloured blocks from the map of ONS that was contained under subsection 4(2) of LIN 23/007.


Attachment B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Security of Critical Infrastructure (Naval shipbuilding precinct) Amendment (LIN 24/006) Rules 2024

This Disallowable Legislative Instrument (the instrument) is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Disallowable Legislative Instrument

1         Part 2A of the Security of Critical Infrastructure Act 2018 (the Act) provides that a responsible entity for one or more critical infrastructure assets, to which Part 2A applies, must have, and comply with, a critical infrastructure risk management program (CIRMP), unless an exemption applies.

2         The Osborne Naval Shipyard (ONS) is a multi-user hub, with multiple entities operating there for the purposes of naval shipbuilding or sustainment. It is foreseeable that the composition of entities that operate ONS may differ from time to time. The purpose of the amendments is to reflect this operative nature of ONS and to ensure the most appropriate entity is the responsible entity for each critical infrastructure asset, and that the critical infrastructure risk management plan is adopted and complied with, as necessary and appropriate.

3         The Disallowable Legislative Instrument amends paragraph 4(1) of the Security of Critical Infrastructure (Naval shipbuilding precinct) Rules (LIN 23/007) 2023 (the Rules) to prescribe that for paragraph 9(1)(f) of the Act, an asset is a critical infrastructure asset if it is:

  • located within the perimeter of an area identified on a map, in Schedule 1, which depicts the ONS precinct, on Lefevre Peninsula, South Australia and
  • used for the primary purposes of naval shipbuilding or sustainment within ONS.

4         The Disallowable Legislative Instrument amends subsection 4(2) of the Rules to prescribe that for subsection 12L(23) of the Act an entity is a responsible entity of a critical infrastructure asset identified in subsection 4(1) if it is an entity that has been granted exclusive control and use, through licence or other contractual arrangement, of the asset or the area where the asset resides, and therefore holds primary responsibility to fulfil the obligations under Part 2A of the Act for that asset or area for such time as the licence or other contractual arrangement remains in force .  The Disallowable Legislative Instrument also provides that in all other circumstances Australian Naval Infrastructure Pty Ltd (ABN 45 051 762 639) as the landlord for the premises at ONS will be the responsible entity.

5         The Disallowable Legislative Instrument amends the Rules to repeal Schedule 1 which is a map of the ONS featuring coloured blocks, and substitutes a new Schedule 1 which is an updated map of ONS that delineates the perimeter of the shipyard. An asset is a critical infrastructure asset if it is located within the perimeter of the area identified on the map, rather than by reference to coloured blocks as featured in old map.

 Human rights implications

This Disallowable Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Disallowable Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

The Honourable Clare O’Neil MP

Minister for Home Affairs and Minister for Cyber Security

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.