The Government’s controversial shipping reforms have passed through the senate
The Government’s controversial shipping reforms passed through the senate yesterday after
clearing the House of Representatives last month.
Despite more than 65 submissions received by the House of Representatives Standing Committee on Infrastructure and Communications inquiry on the reform, the shipping reform will come into effect next month.
Another 40 submissions were received on a discussion paper released in 2010, and a total of 15 submissions were received on the Coastal Trading Bill alone, including submissions from the Freight and Logistics Council of Western Australia, Sugar Australia, and the Cement Industry Federation.
Early this year at the Australian Logistics Conference in Sydney, Cement Industry Federation Chief Executive Margie Thompson and Cement Australia Supply Chain General Manager Murray Adams confronted Transport Minister Anthony Albanese about the industry’s concerns.
But Minister Albanese chastised the group for debating the issue in the media, saying his door was “always open” and that if the industry wanted to get anywhere “with this minister” to address him directly.
In a media release yesterday, Albanese says the Stronger Shipping for a Stronger Economy reforms represent the most significant overhaul of the Australian shipping industry in 100 years.
“In the past decade the Australian fleet has gone from 55 ships to 21, with only four operating on international routes,” Albanese says.
“In a country where 99.9 per cent of our trade is moved by ships, without action there would soon be no fleet left.”
“That’s why the Government has acted – we want to see a bright and prosperous future for shipping in Australia.”
Transport Shadow Minister Warren Truss was among the legislation’s critics, while Maritime Union of Australia’s Paddy Crumlin and the Australian Logistics Association openly supported the reform.
According to government, the shipping reform package aims to provide a regulatory framework for coastal trading in Australia to increase Australian ship numbers on the coast and maximise their use.
The package proposes to do this by changing Australia’s licensing system to a three-tiered system that includes a general licence, providing unrestricted access for Australian registered ships; a temporary licence providing limited access for foreign ships or those on the Australian international shipping register; and an emergency licence with restricted access for emergency situations, such as a natural disaster.
The legislation also aims to provide tax incentives, including accelerated depreciation of ships, income tax relief for Australian operators of Australian registered ships, a refundable tax offset for employers who employ Australian seafarers and exemptions from royalty withholding tax for foreign owners who lease ships to Australian operators under a bareboat or demise charter.
The Bills include:
· Coastal Trading (Revitalising Australian Shipping) Bill
· Coastal Trading (Revitalising Australian Shipping) (Consequential Amendments and Transitional Provisions) Bill
· Shipping Registration Amendment (Australian International Shipping Register) Bill
· Shipping Reform (Tax Incentives) Bill; and
· Tax Laws Amendment (Shipping Reforms) Bill.
The shipping legislation passed through the House of Representatives on May 31.