Ships (Capital Grants) Regulations (Amendment)

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F1996B00006 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by the Authority of the Ministers for Shipping and Aviation Support

Subject - Ships (Capital grants) Act 1987

Ships (Capital Grants) Regulations (Amendment)

Section 42 of the Ships (Capital Grants) Act 1987 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

Subsection 27(1) of the Act provides that the regulations may prescribe fees to be paid in relation to applications or claims under the Act.

Fees payable under the Act in relation to applications or claims were last adjusted in December 1989. In accordance with the Government’s policy of cost recovery in relation to services provided, the fees are amended to meet cost increases of 6% since the last adjustment.

The regulations amend Regulation 5 to;

(a) increase the fee in relation to an application under subsection 12(1) of the Act for a category certificate for a ship from $975 to $1,034,

(b) increase the fee in relation to an application under subsection 14(1) of the Act for a variation to a category certificate for a ship from $375 to $398.

Overview

The Ships (Capital Grants) Act 1987 was enacted to facilitate the provision of financial assistance to support the maritime industry in Australia. This legislation aims to address the financial barriers faced by ship owners and operators in acquiring or maintaining vessels that meet required safety, environmental, and operational standards. The Act allows for the granting of capital funds to eligible applicants, thus promoting maritime safety, environmental protection, and economic development within the sector. The enacting body for this Act is the Parliament of Australia, which demonstrates the government’s commitment to supporting the maritime industry through financial aid. The policy objective underpinning this Act is to enhance maritime capabilities, ensuring that Australian shipping remains competitive and compliant with international standards. In line with the government’s policy of cost recovery for services provided under the Act, the Ships (Capital Grants) Regulations (Amendment) have been introduced to adjust the fees payable in relation to applications or claims. This amendment responds to a 6% increase in costs since the last adjustment in December 1989. Specifically, the regulations update the fees to reflect current economic conditions, ensuring that the administrative costs associated with processing applications are adequately covered. This measure is crucial for maintaining the efficiency and effectiveness of the grant application process, thereby supporting the overall objectives of the Act.

Scope and Application

The Ships (Capital Grants) Act 1987 applies to persons and entities involved in the maritime industry, particularly those seeking category certificates for ships or variations to such certificates. The Act covers the granting of capital grants for ships, and its regulatory framework is intended to facilitate and regulate the process of applying for and receiving these grants. The Act’s jurisdiction extends nationally within Australia, encompassing both Commonwealth and state or territory authorities as necessary to administer the grant process. The Act’s application does not explicitly exclude any particular groups or types of ships, but its primary focus is on vessels that require category certificates for eligibility in the grant scheme. The Act’s application may be extended or restricted through subordinate instruments, such as the amended regulations noted in the explanatory statement, which detail specific fees and their adjustments. These amendments ensure that the fees charged align with the government’s policy of cost recovery, reflecting cost increases since the last adjustment in December 1989.

Key Provisions

The main operative sections of the Ships (Capital Grants) Regulations (Amendment) concern the adjustment of fees related to applications and claims under the Ships (Capital Grants) Act 1987. Specifically, Regulation 5 is amended to update the fees payable for certain applications concerning ships (sections 12(1) and 14(1)). The fee for an application for a category certificate for a ship is increased from $975 to $1,034, and the fee for an application for a variation to a category certificate for a ship is increased from $375 to $398. These adjustments reflect a 6% increase, aligning with the government’s policy of cost recovery for services provided. The obligations and requirements imposed by these regulations on the parties or entities they govern are straightforward. Any individual or entity seeking to apply for a category certificate or a variation to such a certificate for a ship under the Act must now pay the updated fees as specified in Regulation 5. This includes ensuring that the correct amount is remitted as part of the application process. Additionally, these regulations necessitate that the updated fee schedule be adhered to for all applications submitted after the amendment has come into effect. Failure to comply with the amended fees as prescribed by the regulations may result in various consequences. Although the explanatory statement does not explicitly mention offences or penalties for non-compliance, it is reasonable to infer that any application submitted without the correct fee would not be processed. In a broader context, non-compliance with regulatory requirements under the Act might lead to administrative penalties, delays in processing, or other enforcement actions as determined by the relevant authorities. The exact nature and extent of these consequences would need to be clarified in the Act itself or in related regulatory frameworks.

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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.