Regulation Impact Statement Updates

Official website for publishing regulatory impact analysis information for regulatory decisions announced by the Australian Government, COAG and COAG Councils.

Coastal Shipping Regulation Amendments

Aust Gov
2nd November 2017

Regulation Impact Statement – Department of Infrastructure and Regional Development

On 13 September 2017, the Government introduced the Coastal Trading (Revitalising Australian Shipping) Amendment Bill 2017, which is intended to reduce the regulatory burden of the existing Coastal Trading (Revitalising Australian Shipping) Act 2012 and expand coverage to certain additional activities, while maintaining its objectives.

The regulatory regime aims to ensure safe, secure and efficient coastal shipping using Australian owned and crewed ships where possible. However, shipping companies and business users identified that the regime created significant administrative burden and was insufficiently flexible. In addition, the regime’s lack of coverage of offshore installations – such as those for oil or gas production, voyages commencing and concluding at the same port, and dry-docking was limiting business opportunities in these areas through the application of Customs Act importation obligations. In addition to regulatory cost savings, the changes would likely make it easier for businesses to access shipping services and potentially lead to greater participation of vessels on the Australian coast, making shipping a viable alternative to road or rail.

The Office of Best Practice Regulation assessed the Regulation Impact Statement (RIS) prepared by the Department of Infrastructure and Regional Development as compliant with the Government’s RIS requirements and consistent with best practice. The RIS estimates average annual regulatory cost savings from the changes at $1.35m a year.

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