Australian Coastal Shipping: Navigating Regulatory Reform

• Author: Jennifer Porter
• Position: BCom, LLB (Hons) (UQ), LLM (Edin), Senior Associate, Minter Ellison. The author acknowledges the research assistance of David Smith, Lawyer, Minter Ellison
• Pages: 8-17

(2015) 29 ANZ Mar LJ

8

AUSTRALIAN COASTAL SHIPPING: NAVIGATING REGULATORY REFORM

Jennifer Porter*

1 Background

On 18 June 2012, the Federal Labour Government passed the Stronger Shipping for a Stronger Economy

legislative pac kage, with the aim of revitalising Australia's ailing shipping industry.1 The legislative package

overhauled the regulation of coastal shipping in Australia, changing vessel registration arrangements,2

introducing a licensing regim e to regulate vessels engaged in domestic sh ipping trade and strengthening

cabotage provisions.3 It also introduced a raft of tax incentives,4 designed to 'encourage and sustain growth and

productivity in our shipping industry'.5 This regime came atop 2010 amendments to the Fair Work Regulations

2009 (Cth) which extended the application of the Fair Work Act 2009 (Cth) to foreign flagged vessels operating

in Australian waters and engaged in coastal trading.

In April 2014, the Australian Government released an Options Paper: Approaches to regulating coastal shipping

in Australia (‘Options Paper'), and sought stakeholder input regarding the impact of the current regulatory

regime on the sh ipping industry. T he Options Paper records Government's 'unambiguous aim' to 'reduce the

regulatory burden in the shipping industry to provide Australia with access to efficient and competitive shipping

services'.6

This paper will analyse the legal, economic and practical implications of the 2012 regulatory changes and

undertake a review of the industry's response to the Options Paper. This will inform an analysis of the key

issues a ffecting the c oastal shipping industry, and facilitate the identification of matters to b e considered and

resolved in any future legislative reform.

2 Implications of the 2012 Legislative Package

The Coastal Trading (Revitalising Australian Shipping) Act 2012 (Cth) (‘Coastal Trading Act') established a

three tier lice nsing system which replaced the permit system prescribed by the Navigation Act 1912 (Cth).

Under the Coastal Trading Act, vessels on the Australian Gene ral Register may obtain a General Licence which

affords the holder unrestricted access to the coastal trade for a period of five years.7

A Temporary Licence can be granted to a vessel registered on the Australian International Shipping Register, or

a foreign flagged vessel, to undertake nominated coastal trading voyages over a 12 month period.8 An

application for a Temporary Licence must include a minimum of five voyages and specify loading dates, cargo

or passenger details, unloading dates and vessel details.9 Vessels with a General Licence are afforded the right

to lodge a notice in response to applications for Temporary Licences by foreign flagged vessels, where the

General Licence holder could undertake the voyage contemplated in the application.10 Following a period of

consultation, the Minister can determine whether or not to grant the Temporary Licence. Once granted, a

Temporary Licence can be varied, and is required to be varied, if dates or cargo details change prior to the

voyage outside accepted tolerance limits.11

* BCom, LLB (Hons) (UQ), LLM (Edin), Senior Associate, Minter Ellison. The author acknowledges the research assistance of David

Smith, Lawyer, Minter Ellison.

1 Anthony Albanese MP, ‘A Strong and Prosperous Maritime Future’ (Media Release, June 18 2012) anthonyalbanese.com.au/a-

strong-and-prosperous-maritime-future>.

2 Shipping Registration Amendment (Australian International Shipping Register) Act 2012 (Cth).

3 Coastal Trading (Revitalising Australian Shipping) Act 2012 (Cth) Pt 4.

4 Shipping Reform (Tax Incentives) Act 2012 (Cth); Tax Laws Amendment (Shipping Reform) Act 2012 (Cth).

5 Albanese, above n 1.

6 Australian Government Department of Infrastructure and Transport, ‘Approaches to regulating coastal shipping in Australia’ (Options

Paper, Department of Infrastructure and Transport, 8 April 2014)

.

7 Coastal Trading (Revitalising Australian Shipping) Act 2012 (Cth) ss 13, 16.

8 Ibid ss 28, 40.

9 Ibid s 28.

10 Ibid s 31.

11 Ibid ss 43-49.