EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO. 279
Stevedoring Industry Levy (Rates of Levy) Regulations (Amendment)
(Issued by the authority of the Minister for Industrial Relations)
Section 12 of the Stevedoring Industry Levy Act 1977 (the Act) provides that the Governor-General may make regulations prescribing the rate of levy for the purposes of the Act, and that the Governor-General shall take into consideration any recommendations with respect to the rate of that levy that have been made to the Minister by the Stevedoring Industry Finance Committee (SIFC). The SIFC recommended to the Minister a reduction in the general levy in permanent ports from $2.26 to $1.40 per man-hour with effect from 30 October 1989.
Section 4 of the Act provides that a general levy is imposed in respect of any employment of Division A waterside workers (at permanent ports) and Section 5 of the Act provides that this levy will be $1.00 per man-hour of employment or such other amount per man-hour of employment as is prescribed.
The amount of this general levy as prescribed in sub-regulation 4(1) of the Stevedoring Industry Levy (Rates of Levy) Regulations (the Principal Regulations) was $2.26 per man-hour of employment.
The funds received from this general levy at permanent ports have been used to repay the principal and interest on loans to fund past redundancies and to fund employer contributions to the Stevedoring Employees Retirement Fund (SERF). The loans have now been repaid leaving a surplus in the general account. The reduced amount of levy together with accumulated funds will generate sufficient funds to cover employer contributions to SERF.
Regulations have been made which amend the Principal Regulations in accordance with the recommendation of the SIFC:
- regulation 1 provides that the amendment shall commence on 30 October 1989;
- regulation 2 amends subregulation 4(1) by omitting “$2.26” and substituting “$1.40”.
Overview
The Stevedoring Industry Levy (Rates of Levy) Regulations (Amendment) 1989 was enacted to address the issue of adjusting the rate of levy prescribed under the Stevedoring Industry Levy Act 1977. This was in response to recommendations made by the Stevedoring Industry Finance Committee to reduce the general levy in permanent ports. The objective of this legislative amendment was to ensure that the funds generated from the levy would be sufficient to cover employer contributions to the Stevedoring Employees Retirement Fund (SERF) while reflecting the repayment of past loans and the existing surplus in the general account. The regulation was issued by the authority of the Minister for Industrial Relations, taking into account the recommendations of the SIFC to adjust the levy rate from $2.26 to $1.40 per man-hour, effective from 30 October 1989.
Scope and Application
The Stevedoring Industry Levy (Rates of Levy) Regulations (Amendment) Statutory Rules 1989 No. 279 amends the rates of levy prescribed under the Stevedoring Industry Levy Act 1977. The Act applies to the employment of Division A waterside workers at permanent ports and imposes a general levy on their employment. The purpose of this levy is to repay the principal and interest on loans used to fund past redundancies and to contribute to the Stevedoring Employees Retirement Fund (SERF). The amended regulations, which came into effect on 30 October 1989, adjust the levy rate from $2.26 to $1.40 per man-hour, in accordance with a recommendation by the Stevedoring Industry Finance Committee. This reduction reflects the repayment of loans and the generation of sufficient funds through the reduced levy rate and accumulated surplus to cover employer contributions to SERF. The changes are made pursuant to section 12 of the Act, which allows for the Governor-General to modify the rates of levy based on SIFC recommendations.
Key Provisions
The primary sections of the Statutory Rules 1989 No. 279 (Amendment) relate to the rates of levy prescribed under the Stevedoring Industry Levy Act 1977. Section 12 of the Act allows the Governor-General to make regulations specifying the rate of the levy, taking into account any recommendations made by the Stevedoring Industry Finance Committee (SIFC) to the Minister for Industrial Relations. The amendment in regulation 1 establishes the commencement date of these changes as 30 October 1989. Regulation 2 specifically alters the rate of the general levy from $2.26 to $1.40 per man-hour of employment at permanent ports, as per the SIFC's recommendation.
Under these regulations, the obligations of the parties involved primarily concern the payment of the revised levy rate. Employers must ensure that they comply with the new levy rate set out in the amended regulations, specifically $1.40 per man-hour of employment. This requirement applies to any employment of Division A waterside workers at permanent ports, as outlined in Section 4 of the Act. The funds collected from this revised levy are intended to cover employer contributions to the Stevedoring Employees Retirement Fund (SERF), given that the previously accumulated funds have already been used to repay loans for past redundancies.
Breaching these regulations could have legal consequences. While the Explanatory Statement does not explicitly detail penalties for non-compliance, it is likely that failure to adhere to the prescribed levy rates would be subject to the general enforcement mechanisms provided under the Stevedoring Industry Levy Act 1977. This could potentially include civil or criminal penalties, as well as the obligation to pay the correct amount of the levy retroactively. Given the nature of the levy and its financial implications, penalties might also include financial sanctions or legal action to recover unpaid amounts.