“Australian resident” means a natural person who is, or but for being at sea would be, ordinarily resident in Australia;
“Australian trading ship” means a trading ship registered in Australia;
“category” means a category of ships under section 6;
“category certificate” means a certificate given under section 12 or subsection 13 (2) and, in relation to a ship, means such a certificate given for the ship;
“commissioned”, in relation to a ship, means put into service or held in reserve for the purpose of being put into service;
“conversion”, in relation to a ship, means the conversion because of which subsection 8 (3) applies to the ship;
“crew”, in relation to a ship, includes the master and officers of the ship;
“domestic voyage” means a voyage between:
(a) places in Australia; or
(b) Australia and a place that is not in Australia or in a foreign country;
“eligible ship” means:
(a) a tanker that could be operated on a foreign voyage with a crew of not more than 21;
(b) a tanker that could be operated on a domestic voyage with a crew of not more than 23;
(c) a non-tanker that could be operated on a voyage with a crew of not more than 21; or
(d) a ship that:
(i) could, on a particular voyage, fall into a regulation category; and
(ii) could be operated on the voyage with a crew whose number does not exceed the maximum crew number for the voyage;
but does not include a ship less than 12 metres in length;
“extensively modified”, in relation to a ship, has the meaning given by section 5;
“foreign voyage” means a voyage other than a domestic voyage;
“grant” means a grant under this Act;
“grant year” means a period of 12 months commencing on 1 April;
“ineligible ship” means a ship other than an eligible ship;
“maximum crew number”, in relation to a ship’s voyage, means the maximum crew number for the voyage under section 7;
“non-tanker” means a ship other than a tanker, but does not include a ship that could not be a trading ship;
“purchase”, in relation to a ship, includes the meaning given by section 4;
“registered in Australia”, in relation to a ship, means registered under the Shipping Registration Act 1981;
“regulation category” means a category created by regulations referred to in subsection 6 (2);
“Secretary” means the Secretary to the Department;
“ship” has the same meaning as in the Navigation Act 1912;
“shipowner” means a person who owns or intends to own a ship, but does not include a person who is exempt from income tax imposed by a law of the Commonwealth;
“statutory category” means a category created by subsection 6 (1);
“tanker” means a ship constructed or adapted primarily to carry oil or other liquids in bulk in its cargo spaces;
“trading ship” means a ship that is used in relation to any business or commercial activity and, without limiting the generality of the foregoing, includes a ship that is used wholly or principally for the carriage of cargo, or passengers, for hire or reward, but does not include:
(a) a ship that is used wholly or principally for the provision of services to ships or shipping, whether for reward or otherwise;
(b) a ship that is, within the meaning of the Navigation Act 1912, a fishing vessel, an inland waterways vessel, a pleasure craft, an off-shore industry vessel or an off-shore industry mobile unit; or
(c) a ship that is used wholly or principally within a harbour within the meaning of the Navigation Act 1912;
“used”, in relation to a ship, includes held in reserve for use.
Hire purchase agreements deemed purchases etc.
4. Where:
(a) a shipowner enters into an agreement with the owner of a ship to lease the ship; and
(b) the agreement provides that, if certain payments under the agreement are made, the shipowner will become the owner of the ship;
then, for the purposes of this Act:
(c) the shipowner shall be deemed to purchase the ship on entering into the agreement; and
(d) if the shipowner loses the right under the agreement to become the owner of the ship—the shipowner shall be deemed to cease to be its owner on losing that right.
Extensively modified
5. For the purposes of this Act, a shipowner shall not be taken to have converted an ineligible ship into an eligible ship by extensively modifying it unless the Secretary is satisfied that the modification:
(a) involved extensive changes to the hull, or to the propulsion machinery or other equipment, of the ship; and
(b) significantly changed the operational characteristics of the ship.
Categories of ships
6. (1) For the purposes of this Act:
(a) tankers on foreign voyages constitute a category of ships;
(b) tankers on domestic voyages constitute a category of ships; and
(c) non-tankers on voyages constitute a category of ships.
(2) The regulations may declare that, for the purposes of this Act:
(a) a specified ship on specified voyages constitutes a category of ships;
(b) ships in a specified class of ships on specified voyages constitute a category of ships;
(c) a specified ship on voyages constitutes a category of ships; or
(d) ships in a specified class of ships on voyages constitute a category of ships.
(3) The power of the Governor-General to make regulations referred to in subsection (2) in relation to a ship or ships shall be exercised only on advice of the Executive Council, being advice that has had regard to:
(a) the differences between the ship or ships and other ships;
(b) the differences between the use or operation of the ship or ships and other ships;
(c) the voyages likely to be made by the ship or ships; and
(d) the frequency with which the ship or ships will make particular voyages.
(4) For the purposes of this Act, where a ship on a voyage falls into a regulation category, the ship shall not be taken to fall into a statutory category while on that voyage.
Maximum crew numbers
7. (1) Subject to subsection (2), for the purposes of this Act:
(a) the maximum crew number for a ship’s voyage on which it falls into a category referred to in paragraph 6 (1) (a) or (c) is 21;
(b) the maximum crew number for a ship’s voyage on which it falls into the category referred to in paragraph 6 (1) (b) is 23; and
(c) the maximum crew number for a ship’s voyage on which it falls into another category is the number prescribed in relation to the category by the regulations.
(2) Where under section 22, the Secretary approves the operation of a ship on a voyage with a crew of a particular number, the maximum crew number for that voyage of the ship is that number.
PART II—GRANTS
Specification of grant
8. (1) Subject to this section and section 9, where:
(a) a shipowner purchases an eligible ship that has never been commissioned; and
(b) the ship becomes an Australian trading ship;
a grant is payable to the shipowner in respect of the ship.
(2) Subject to this section and section 9, where:
(a) a shipowner purchases an eligible ship that has been commissioned but:
(i) whose construction was completed within the 5 years immediately before the purchase; and
(ii) which was not registered in Australia before the purchase; and
(b) the ship becomes an Australian trading ship;
a grant is payable to the shipowner in respect of the ship.
(3) Subject to this section and section 9, where:
(a) a shipowner converts an ineligible ship registered in Australia into an eligible ship by extensively modifying the ship; and
(b) after the conversion, the ship is an Australian trading ship;
a grant is payable to the shipowner in respect of the ship.
(4) A grant is not payable to a shipowner in respect of the purchase or conversion of a ship unless:
(a) there is a category certificate for the ship;
(b) the shipowner has remained the ship’s owner at all times after the purchase or conversion;
(c) the ship is in commission;
(d) the ship has been an Australian trading ship at all times while it has been in commission after the purchase or conversion;
(e) at least one crew has been engaged for the ship;
(f) all members of the ship’s crew or crews after the purchase or conversion were Australian residents or members in accordance with an approval under subsection 22 (7); and
(g) the number of each crew of the ship engaged after the purchase or conversion for a voyage of the ship did not exceed the maximum crew number for the voyage.
(5) A grant is not payable to a shipowner in respect of a ship unless the shipowner intends to:
(a) remain the owner of the ship for at least the 5 years beginning on the payment of the grant; and
(b) do all things reasonable to ensure that:
(i) while the ship is in commission in those years, the ship will be an Australian trading ship;
(ii) while the ship is owned by the shipowner, the ship does not make a voyage so that it falls into a category not specified in its category certificate;
(iii) while the ship is owned by the shipowner, all members of its crews will be Australian residents or members in accordance with an approval under subsection 22 (7); and
(iv) when the ship is on a voyage while owned by the shipowner, the number of its crew will not exceed the maximum crew number for the voyage.
Grants not payable
9. (1) A grant is not payable under subsection 8 (1) to a shipowner in respect of a ship if:
(a) the construction, or shipowner’s purchase, of the ship was arranged by the shipowner before 22 December 1986; or
(b) the ship is delivered to the shipowner, or registered in Australia, before 1 July 1987 or after 30 June 1992.
(2) A grant is not payable under subsection 8 (2) to a shipowner in respect of a ship if:
(a) the shipowner’s purchase of the ship was arranged by the shipowner before 22 December 1986; or
(b) the ship is delivered to the shipowner, or registered in Australia, before 1 July 1987 or after 30 June 1990.
(3) A grant is not payable under subsection 8 (3) to a shipowner in respect of a ship if:
(a) the ship’s conversion was arranged before 22 December 1986; or
(b) after that conversion, the ship is delivered to the shipowner before 1 July 1987 or after 30 June 1992.
(4) A grant is not payable under this section in respect of a ship if any grant has previously been paid under this section in respect of the ship.
(5) A grant is not payable to a shipowner in relation to the purchase of a ship if another person:
(a) arranged the construction or purchase of the ship before 22 December 1986; or
(b) received delivery of the ship before 1 July 1987;
unless the Secretary is satisfied that there has not been an arrangement between any persons for the purpose of the payment of a grant that, but for the arrangement, would not have been payable.
(6) A grant is not payable to a shipowner in relation to the conversion of a ship if another person arranged the conversion of the ship before 22 December 1986, unless the Secretary is satisfied that there has not been an
arrangement between any persons for the purpose of the payment of a grant that, but for the arrangement, would not have been payable.
Grants payable in respect of purchases etc. outside Australia
10. (1) A grant may be payable under section 8 in respect of a ship notwithstanding that the ship was constructed outside Australia.
(2) A grant may be payable under subsection 8(1) or (2) in relation to the purchase of a ship notwithstanding that the purchase took place outside Australia.
(3) A grant may be payable under subsection 8 (3) in relation to the conversion of a ship notwithstanding that the conversion was carried out outside Australia.
Amount of grant
11. (1) The grant payable to a shipowner under subsection 8 (1) or (2) in respect of a ship is an amount equal to 7% of the ship’s purchase price paid by the shipowner.
(2) The grant payable under subsection 8 (3) in respect of a ship is an amount equal to 7% of the cost of the ship’s conversion.
PART III—CATEGORY CERTIFICATES
Applications for category certificates
12. (1) Where a person proposes to make a claim for a grant in respect of a ship, the person may, at any time after particulars of the ship are known (whether or not the construction of the ship has begun) lodge with the Secretary an application for a category certificate for the ship.
(2) An application in relation to a ship shall:
(a) be in accordance with the appropriate approved form;
(b) include such information as is required by the form;
(c) specify each category in which, in the opinion of the applicant, the ship will fall while it is owned by the applicant; and
(d) be signed and witnessed as required by section 28.
(3) As soon as practicable after the lodgment of an application in relation to a ship, the Secretary shall, after examining the application and causing such inquiries as the Secretary considers necessary to be made:
(a) if the Secretary is satisfied that the application complies with subsection (2) and that, while the ship is owned by the applicant, it could fall into a category or categories specified in the application—give a category certificate for the ship specifying that category or categories; or
(b) if the Secretary is not so satisfied—refuse to give a category certificate for the ship.
(4) Where the Secretary, in relation to an application, refuses to give a category certificate, the Secretary shall give the applicant notice in writing of the refusal setting out the reasons for it.
(5) Where the Secretary, in relation to an application, gives a category certificate but does not specify in the certificate a category specified in the application, the Secretary shall give the applicant particulars in writing of the reasons for not specifying the category in the certificate.
Review of decisions about category certificates
13. (1) Where, on an application under section 12, the Secretary refuses to give a category certificate, the applicant may, within 28 days after the giving of the notice of the refusal, lodge an application in writing with the Secretary for the reconsideration of the first-mentioned application setting out reasons for the reconsideration.
(2) As soon as practicable after the lodgment of an application under subsection (1) for the reconsideration of an application under section 12 in relation to a ship, the Secretary shall, after so reconsidering the application under section 12, considering the application under subsection (1) and making such inquiries as the Secretary considers necessary:
(a) if the Secretary is satisfied that the reconsidered application complies with subsection 12 (2) and that, while the ship is owned by the applicant, it could fall into a category or categories specified in the reconsidered application—give a category certificate for the ship specifying that category or categories; or
(b) if the Secretary is not so satisfied—refuse to give a category certificate for the ship.
(3) Where the Secretary, in relation to an application reconsidered under subsection (2), refuses to give a category certificate, the Secretary shall give the applicant notice in writing of the refusal setting out the reasons for it.
(4) Where the Secretary, in relation to an application reconsidered under subsection (2), gives a category certificate but does not specify in the certificate a category specified in the application, the Secretary shall give the applicant particulars in writing of the reasons for not specifying the category in the certificate.
(5) The making of an application under subsection (1) for the reconsideration of an application under section 12 for a category certificate for a ship does not prevent the making of a further application under that section for such a certificate.
(6) Where:
(a) a category certificate is given under section 12 or subsection (2); and
(b) the certificate does not specify a category or categories specified in the application for the certificate;
the applicant may, within 28 days after the giving of the certificate, lodge with the Secretary an application in writing for the insertion in the certificate of the unspecified category or categories setting out the reasons for the insertion.
(7) As soon as practicable after the lodgment of an application under subsection (6) in relation to a ship, the Secretary shall, after considering the application and making such inquiries as the Secretary considers necessary:
(a) if the Secretary is satisfied that, while the ship is owned by the applicant, it could fall into a category or categories specified in the application—insert the category or categories in the ship’s category certificate; or
(b) if the Secretary is not satisfied that, while the ship is owned by the applicant, it could fall into a category or categories specified in the application—refuse to so insert the category or categories.
(8) Where the Secretary, in relation to an application under subsection (6), refuses to insert a category or categories in a ship’s category certificate, the Secretary shall give the applicant notice in writing of the refusal setting out the reasons for it.
Variation of category certificates
14. (1) Where:
(a) a category certificate for a ship is in force; and
(b) the shipowner who owns the ship wishes the ship to make a voyage that, if made, would cause the ship to fall into a category not specified in the certificate;
the shipowner may lodge with the Secretary an application in writing for the insertion in the certificate of the category.
(2) An application in relation to a category certificate shall:
(a) be in accordance with the appropriate approved form;
(b) include such information as is required by the form;
(c) specify the category which the applicant wishes inserted in the certificate; and
(d) be signed and witnessed as required by section 28.
(3) As soon as practicable after the lodgment of an application in relation to a ship, the Secretary shall, after examining the application and making such inquiries as the Secretary considers necessary:
(a) if the Secretary is satisfied that the application complies with subsection (2) and that, while the ship is owned by the applicant, it could fall into the category specified in the application—insert the category in the ship’s category certificate; or
(b) if the Secretary is not so satisfied—refuse to so insert the category.
(4) Where the Secretary, in relation to an application, refuses to insert a category in a category certificate, the Secretary shall give the applicant notice in writing of the refusal setting out the reasons for it.
PART IV—PAYMENT OF GRANTS
Claims for payment of grant
15. (1) A person who claims to be entitled to be paid a grant may lodge with the Secretary a claim for payment to the person of that grant.
(2) A claim by a person for a grant shall:
(a) be in accordance with the appropriate approved form;
(b) include such information as is required by the form;
(c) contain such statements of intention by the person as would enable the grant to be paid; and
(d) be signed and witnessed as required by section 28.
(3) As soon as practicable after the lodgment of a claim in respect of the ship, the Secretary shall, after examining the claim and causing such inquiries as the Secretary considers necessary to be made:
(a) if the Secretary is satisfied that the claim complies with subsection (2) and that the claimant is otherwise entitled to be paid an amount of grant in respect of the ship—approve, in writing, payment of the amount; or
(b) if the Secretary is not so satisfied—refuse to approve payment of a grant in respect of the ship.
(4) Where the Secretary, in relation to a claim, refuses to approve payment of a grant, the Secretary shall give the claimant notice in writing of the refusal setting out the reasons for it.
Variation of inadequate claim
16. (1) Where a person who has lodged a claim under section 15 (whether or not the claim has been dealt with under subsection 15 (3)) considers that the claim was, because of an inadvertent error, a claim for an amount of grant in respect of a ship that was less than the amount of the grant that the person was entitled to claim in respect of the ship, the person may lodge a claim for payment to the person of the difference between the 2 amounts.
(2) A claim under subsection (1) in relation to a grant shall:
(a) be in accordance with the appropriate approved form;
(b) include such information as is required by the form;
(c) be signed and witnessed as required by section 28; and
(d) be lodged with the Secretary within 3 months after the claim for the grant.
(3) Where a claim under subsection (1) relates to a claim under section 15 that has not been dealt with under subsection 15 (3), the 2 claims shall be dealt with under section 15 as if they were one claim under section 15.
(4) As soon as practicable after the lodgment of a claim under subsection (1) to which subsection (3) does not apply, the Secretary shall, after examining the claim and causing such inquiries as the Secretary considers necessary to be made:
(a) if the Secretary is satisfied that the claim complies with subsection (2) and that the claimant is otherwise entitled to be paid an additional amount of grant in respect of the ship to which the claim relates—approve, in writing, payment of the additional amount; or
(b) if the Secretary is not so satisfied—refuse to approve payment of an additional amount of grant in respect of that ship.
(5) Where the Secretary, in relation to a claim under subsection (1), refuses to approve payment of an additional amount of grant, the Secretary shall give the claimant notice in writing of the refusal setting out the reasons for it.
Variation of excessive claim
17. (1) Where a person who has lodged a claim under section 15 (whether or not the claim has been dealt with under subsection 15(3)) becomes aware that the claim is for an amount of grant in respect of a ship that exceeds the amount of grant that the person was entitled to claim in respect of that ship by more than $100, the person shall, within 28 days after discovering the excess, lodge an acknowledgment of the excess, being an acknowledgment that complies with subsection (2).
Penalty:
(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or
(b) in the case of a body corporate—$5,000.
(2) An acknowledgment by a person under subsection (1) shall:
(a) be in accordance with the appropriate approved form;
(b) include such information as is required by the form;
(c) be signed and witnessed as required by section 28; and
(d) be lodged with the Secretary.
(3) Where an acknowledgment relates to a claim under section 15 that has not been dealt with under subsection 15 (3), the claim shall be dealt with under section 15 as if it had been amended in accordance with the acknowledgment.
(4) Where the Secretary, after examining an acknowledgment under subsection (1) to which subsection (3) does not apply and causing such inquiries as the Secretary considers necessary to be made, is satisfied that there has been an overpayment of a claim by more than $100, the Secretary shall cause to be served on the claimant a demand for the repayment of the
amount of the overpayment, and the claimant is liable to repay that amount to the Commonwealth.
Determination of prices and costs
18. (1) Where, in relation to a claim by a shipowner for a grant under subsection 8 (1) or (2) in respect of a ship, the Secretary forms the opinion that, having regard to sound accounting principles, the price paid for the ship by the shipowner:
(a) is incorrect;
(b) has been fixed in order to obtain an increase in the grant;
(c) is unduly higher than prices paid by other persons for similar ships;
(d) has been increased as the result of the influence of a commercial, financial or other relationship between the shipowner and the person selling the ship, not being a relationship created by the sale itself; or
(e) is an unreasonable price because of a prescribed reason;
the Secretary may, by writing signed by the Secretary, determine the price of the ship, being the price that the Secretary considers to be appropriate having regard to:
(f) the prices of comparable ships; and
(g) any valuation of the ship made under section 19;
and the price paid for the ship by the shipowner shall, for the purposes of this Act, be the price so determined.
(2) Where, in relation to an application by an Australian shipowner for a grant under subsection 8 (3) in respect of a ship, the Secretary forms the opinion that, having regard to sound accounting principles, the cost of the conversion of the ship:
(a) is incorrect;
(b) has been fixed in order to obtain an increase in the grant;
(c) is unduly higher than costs incurred in respect of the similar conversion of similar ships;
(d) has been increased as the result of the influence of a commercial, financial or other relationship between the shipowner and the person carrying out the conversion, not being a relationship created by the agreement to carry out the conversion;
(e) includes charges for work done which was not required for the purpose of converting the ship from an ineligible ship into an eligible ship; or
(f) is unreasonable because of a prescribed reason;
the Secretary may, by writing signed by the Secretary, determine the cost of the conversion of the ship, being the cost that the Secretary considers to be appropriate having regard to:
(g) the cost of comparable conversions of other ships;
(h) the work required to convert the ship from an ineligible ship into an eligible ship; and
(j) any valuation of the cost of the conversion made under section 19; and the cost of the conversion shall, for the purposes of this Act, be the cost so determined.
Valuation of ships etc.
19. Where the Secretary:
(a) decides that, in the absence of further information, a grant is payable to a shipowner in relation to a claim in respect of a ship;
(b) decides to make a determination under subsection 18 (1) or (2) in relation to the claim; and
(c) considers it desirable to have the ship, or the cost of the conversion of the ship, as the case may be, independently valued;
the Secretary may have the valuation carried out by a person who, in the opinion of the Secretary, is qualified to do so and would not be influenced in the valuation by a relationship with the Commonwealth or the shipowner.
Cost of valuation
20. (1) Where:
(a) a grant becomes payable to a shipowner in respect of a ship;
(b) the amount of the grant is related to a price or cost determined under section 18; and
(c) the determination was made having regard to a valuation under section 19;
then:
(d) the cost of the valuation is payable by the shipowner;
(e) that cost may be deducted from the amount of the grant; and
(f) where the cost is so deducted, the grant shall, notwithstanding the deduction, be deemed to have been paid in full.
(2) If:
(a) a valuation under section 19 is made in relation to a claim for a grant; but
(b) the grant does not become payable;
the Secretary shall inform the claimant of the cost of the valuation and, where the Secretary does so, the claimant is liable to pay the cost of the valuation to the Commonwealth.
PART V—CREWS OF SHIPS
Evidence of crewing
21. (1) Where:
(a) a grant has been paid in respect of a ship;
(b) the whole or part of the grant has not been repaid under section 26; and
(c) on each voyage of the ship during a grant year that is one of the 5 grant years immediately after the grant year in which the grant was paid:
(i) the number of the crew did not exceed the maximum crew number for the voyage; and
(ii) all members of the ship’s crew were Australian residents or members in accordance with an approval under subsection 22 (7);
the owner of the ship shall, in the April immediately after the first-mentioned grant year, lodge with the Secretary a certificate in the approved form certifying the matters referred to in paragraph (c).
(2) Where a person has lodged a certificate under subsection (1) in relation to the voyages of a ship, the person shall, if requested in writing by the Secretary to submit particulars of those voyages and of the crew of the ship on those voyages, comply with the request.
Ships may be operated above maximum crew number in certain circumstances etc.
22. (1) Where a shipowner who owns a ship for which there is a category certificate considers that special circumstances exist which require the ship to be operated on a voyage or voyages with a crew whose number is higher than the maximum crew number for the voyage or voyages under subsection 7 (1), the shipowner may apply to the Secretary for approval for the operation of the ship on the voyage or voyages with a crew of that higher number.
(2) An application under subsection (1) shall:
(a) specify the special circumstances because of which the application is made;
(b) specify the voyage or voyages to which the application relates; and
(c) specify the number of the crew with which the applicant wishes the ship to be operated on the voyage or voyages.
(3) As soon as practicable after the making of an application under subsection (1) in relation to a ship, the Secretary shall:
(a) if the Secretary is satisfied that special circumstances exist which require the ship to be operated on a voyage or voyages specified in the application with a crew of the number specified in the application—approve the operation of the ship on the voyage or voyages with a crew of that number; or
(b) if the Secretary is not so satisfied—refuse to approve such operation of the ship.
(4) Without limiting the generality of subsection (3), the Secretary may be satisfied that special circumstances referred to in that subsection apply in relation to a ship because of the recent construction or modification of the ship.
(5) Where a shipowner who owns a ship for which there is a category certificate considers that special circumstances exist which require the ship to be operated on a voyage or voyages with a crew all of whose members are not Australian residents, the shipowner may apply to the Secretary for approval for the operation of the ship on the voyage or voyages with such a crew.
(6) An application under subsection (5) shall:
(a) specify the special circumstances because of which the application is made;
(b) specify the voyage or voyages to which the application relates; and
(c) specify the number of the members of the crew whom the applicant wishes to be persons other than Australian residents.
(7) As soon as practicable after the making of an application under subsection (5) in relation to a ship, the Secretary shall:
(a) if the Secretary is satisfied that special circumstances exist which require the ship to be operated on a voyage or voyages specified in the application with a crew a number of whom specified in the application are not Australian residents—approve the operation of the ship on the voyage or voyages with such a crew; or
(b) if the Secretary is not so satisfied—refuse to approve such operation of the ship.
(8) Without limiting the generality of subsection (7), the Secretary may be satisfied that special circumstances referred to in that subsection apply in relation to a ship’s voyage because:
(a) a person possessing particular skills is required to be a member of the crew on the voyage; and
(b) an Australian resident possessing those skills is not available to be engaged as a member of that crew.
(9) Where the Secretary, in relation to an application under subsection (1) or (5), refuses to approve the operation of a ship in accordance with the application, the Secretary shall give the applicant notice in writing of the refusal setting out the reasons for it.
Ship may be operated with trainees
23. Where, in accordance with conditions approved by the Secretary, a ship is operated with the assistance of persons who are training to be members of the crew of ships, those persons shall not be taken to be members of the crew of the ship for the purposes of this Act.
Crew may be fewer than maximum crew number
24. Nothing in this Act shall be read as prohibiting the operation of a ship on a voyage with a crew whose number is less than the maximum crew number for the voyage.
Manning orders
25. This Act applies notwithstanding:
(a) any order under section 14 of the Navigation Act 1912; or
(b) any manning notice within the meaning of section 57am of the Income Tax Assessment Act 1936.
PART VI—REPAYMENT OF GRANTS
Repayment of grants
26. (1) Where:
(a) a shipowner has been paid a grant in respect of a ship; and
(b) during the period of 5 years beginning on the payment:
(i) the shipowner ceases to be the owner of the ship otherwise than because of a transfer in relation to which the Secretary has made a declaration under section 35; or
(ii) the ship ceases to be an Australian trading ship;
the shipowner shall pay to the Commonwealth an amount that bears the same proportion to the amount of the grant as the number of unexpired months in that period bears to 60.
(2) Where:
(a) a shipowner has been paid a grant in respect of a ship; and
(b) while the shipowner owns the ship, the shipowner allows the ship:
(i) to be operated by a crew all of whose members are not Australian residents or members in accordance with an approval under subsection 22 (7);
(ii) to make a voyage so that it falls into a category that is not specified in its category certificate; or
(iii) to make a voyage when the number of its crew exceeds the maximum crew number for the voyage;
the shipowner shall repay to the Commonwealth the amount of the grant.
(3) For the purposes of subsection (2), a shipowner shall be taken to allow an event referred to in that subsection to occur if:
(a) the event occurs; and
(b) the shipowner has not taken all reasonable steps to prevent the event occurring.
PART VII—ADMINISTRATION
Fees
27. (1) The regulations may prescribe fees to be paid in relation to applications or claims under this Act.
(2) A fee prescribed in relation to an application or claim shall be paid when the application or claim is made and, if the fee is not so paid, the application or claim shall be deemed not to be duly made.
Forms
28. (1) Where, under this Act, an application, claim or acknowledgment lodged by a person in accordance with an approved form is required to be signed and witnessed as required by this section, the form shall:
(a) where the person is a natural person, be signed personally in the presence of a witness by:
(i) the person; or
(ii) another natural person authorised by the first-mentioned person to sign forms under this Act on behalf of the first-mentioned person;
(b) where the person is a body corporate, be:
(i) under the seal of the first-mentioned person; or
(ii) signed personally in the presence of a witness by a natural person authorised by the first-mentioned person to sign forms under this Act on behalf of the first-mentioned person; and
(c) where the form is required to be signed by a natural person in the presence of a witness, state the name and address of the witness and contain a declaration signed by the witness stating that the form was signed in the presence of the witness.
(2) For the purposes of this section, a person shall be taken to have authorised another person to sign forms under this Act on behalf of the first-mentioned person if, and only if, the first-mentioned person has so authorised the other person in writing delivered to the Secretary, being writing:
(a) where the first-mentioned person is a natural person, that:
(i) is signed personally in the presence of a witness by the first-mentioned person; and
(ii) states the name and address of the witness and contains a declaration signed by the witness stating that the writing was signed in the presence of the witness; or
(b) where the first-mentioned person is a body corporate—under the seal of the first-mentioned person.
Power to require persons to answer questions etc.
29. (1) An officer of the Department authorised by the Secretary, in writing, to exercise powers under this section may, by notice signed by the officer, require a person whom the officer believes on reasonable grounds to be capable of giving information relevant to matters in respect of which particulars are required to be given under subsection 21 (2), to attend before the officer at a reasonable time and place specified in the notice and there
to answer questions, and to produce to the officer such documents and other records in relation to such of those matters as are referred to in the notice.
(2) A notice under subsection (1) requiring a person to produce a document or record shall set out the effect of subsection (3).
(3) A person who, pursuant to a notice under subsection (1), produces a document or record kept, made or prepared by another person that, to the knowledge of the first-mentioned person, is false or misleading in a material particular shall, upon so producing the document or record, give to the person to whom the first-mentioned person is required to produce the document or record, a statement in writing signed by the first-mentioned person or, in the case of a body corporate, by a competent officer of the body corporate:
(a) stating that the document or record is, to the knowledge of the first-mentioned person, false or misleading in a material particular; and
(b) setting out, or referring to, the material particular in respect of which the document or record is, to the knowledge of the first-mentioned person, false or misleading.
Penalty:
(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or
(b) in the case of a body corporate—$5,000.
(4) An officer referred to in subsection (1) may make and retain copies of, or take and retain extracts from, any documents or other records produced under this section.
Offences
30. (1) A person shall not knowingly obtain or attempt to obtain a grant that is not payable.
Penalty:
(a) in the case of a natural person—$10,000 or imprisonment for 5 years, or both; or
(b) in the case of a body corporate—$50,000.
(2) A person shall not knowingly or recklessly:
(a) make to the Secretary or another person exercising a power or performing a function or duty in relation to this Act a statement, either orally or in writing, that is false or misleading in a material particular; or
(b) present to the Secretary or another person exercising a power or performing a function or duty in relation to this Act a certificate under subsection 21 (1), particulars under subsection 21 (2), or a document or other record, that is false or misleading in a material particular.
Penalty:
(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or
(b) in the case of a body corporate—$5,000.
(3) A person shall not, without reasonable excuse, refuse or fail:
(a) to attend before an officer of the Department; or
(b) to answer a question or produce a document or other record;
when so required under this Act.
Penalty:
(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or
(b) in the case of a body corporate—$5,000.
(4) Where, in proceedings for an offence against subsection (1) or (2) in respect of any conduct engaged in by a body corporate, it is necessary to establish the state of mind of the body, it is sufficient to show that a director, servant or agent of the body, being a director, servant or agent by whom the conduct was engaged in within the scope of his or her actual or apparent authority, had that state of mind.
(5) Any conduct engaged in on behalf of a body corporate:
(a) by a director, servant or agent of the body within the scope of his or her actual or apparent authority; or
(b) by any other person at the direction or with the consent or agreement (whether express or implied) of a director, servant or agent of the body, where the giving of such direction, consent or agreement is within the scope of the actual or apparent authority of the director, servant or agent;
shall be deemed, for the purposes of subsections (1) and (2), to have been engaged in by the body.
(6) A reference in subsection (4) to the state of mind of a person includes a reference to the knowledge, intention, opinion, belief or purpose of the person and the person’s reasons for the intention, opinion, belief or purpose.
(7) A person shall not be convicted of:
(a) both an offence against or arising out of subsection (1) and an offence against or arising out of subsection 17 (1); or
(b) both an offence against or arising out of subsection (1) and an offence against or arising out of subsection (2);
in respect of the same claim for a grant.
(8) A reference in subsection (7) to a person being convicted of an offence includes a reference to an order being made under section 19b of the Crimes Act 1914 in relation to the person in respect of an offence.
(9) An offence against subsection (1) is an indictable offence.
(10) Notwithstanding that an offence against subsection (1) is an indictable offence, a court of summary jurisdiction may hear and determine proceedings in respect of such an offence if the court is satisfied that it is proper to do so and the defendant and the prosecutor consent.
(11) Where, in accordance with subsection (10), a court of summary jurisdiction convicts a person of an offence against subsection (1), the penalty that the court may impose is:
(a) if the person is a natural person—a fine not exceeding $2,000 or imprisonment for a period not exceeding 12 months, or both; or
(b) if the person is a body corporate—a fine not exceeding $10,000.
Time for prosecutions
31. Notwithstanding anything in any other law, proceedings for an offence against this Act may be instituted within the period of 3 years after the commission of the offence.
Recovery of grant on conviction
32. (1) Where a person is convicted of an offence against subsection 17 (1) or 30 (1) or (2), the court may, in addition to imposing a penalty under that subsection, order the person to refund to the Commonwealth the amount of any grant wrongfully obtained by the person because of the commission of the offence.
(2) Where:
(a) a court makes an order under subsection (1) ordering a person to refund to the Commonwealth the amount of any grant; and
(b) the court has civil jurisdiction to the extent of the amount;
the order is enforceable in all respects as a final judgment of the court in favour of the Commonwealth.
(3) Where:
(a) a court makes an order under subsection (1) ordering a person to refund to the Commonwealth the amount of any grant; and
(b) the court:
(i) does not have civil jurisdiction; or
(ii) has civil jurisdiction, otherwise than to the extent of the amount;
the proper officer of the court shall issue to the Secretary a certificate in the prescribed form containing the prescribed particulars.
(4) The certificate may, in the prescribed manner and subject to the prescribed conditions (if any), be registered in a court having civil jurisdiction to the extent of the amount ordered to be refunded to the Commonwealth.
(5) Upon registration under subsection (4), the certificate is enforceable in all respects as a final judgment of the court in favour of the Commonwealth.
(6) The costs of registration of the certificate and other proceedings under this section shall, subject to the prescribed conditions (if any), be deemed to be payable under the certificate.
Recovery of money owing
33. Where, under subsection 17 (4) or section 20 or 26, a person is liable to pay an amount to the Commonwealth, the Commonwealth may recover the amount as a debt due to the Commonwealth by action in any court of competent jurisdiction.
PART VIII—MISCELLANEOUS
Return for Parliament
34. (1) The Secretary shall, as soon as practicable after the end of each financial year, give to the Minister a return setting forth:
(a) the name and address of each person to whom a grant was paid in that financial year;
(b) the amount of grant paid to each person in that financial year; and
(c) such other particulars (if any) as are prescribed.
(2) The Minister shall cause a copy of the return to be laid before each House of the Parliament within 15 sitting days of that House after the return is received by the Minister.
Transfer of ships between shipowners
35. (1) Where:
(a) a shipowner has been paid a grant in respect of a ship; and
(b) the shipowner proposes to transfer the ownership of the ship to another shipowner;
the Secretary may, on the application of those shipowners, make a declaration in writing that, after the transfer, section 26 has effect in relation to the ship as if a reference in the section to the shipowner, other than the references in paragraph 26 (1) (a) and 26 (2) (a), were a reference to that second-mentioned shipowner, and, if the Secretary makes such a declaration, it has effect accordingly.
(2) Where the Secretary, in relation to an application, refuses to make a declaration, the Secretary shall give the applicant notice in writing of the refusal setting out the reasons for it.
Delegation
36. (1) The Secretary may, either generally or as otherwise provided by the instrument of delegation, by writing signed by the Secretary, delegate to a person holding or performing the duties of a Senior Executive Service office within the meaning of the Public Service Act 1922, being an office in the Department, all or any of the Secretary’s powers under this Act, other than this power of delegation.
(2) A power so delegated, when exercised by the delegate, shall, for the purposes of this Act, be deemed to have been exercised by the Secretary.
(3) A delegation under this section does not prevent the exercise of a power by the Secretary.
Uniformity
37. If any grant is bounty within the meaning of paragraph 51 (iii) of the Constitution, a power conferred on the Governor-General or the Secretary by this Act shall not be exercised in such a manner that that grant would not be uniform throughout the Commonwealth within the meaning of that paragraph.
Application for review
38. (1) Applications may be made to the Administrative Appeals Tribunal for a review of:
(a) a decision of the Secretary for the purposes of section 5 that a ship has not been converted by being extensively modified;
(b) a decision of the Secretary under subsection 13 (2) refusing to give a category certificate;
(c) a decision of the Secretary under subsection 13 (7) refusing to insert a category;
(d) a decision of the Secretary under subsection 14 (3) refusing to insert a category;
(e) a decision of the Secretary under section 15 approving payment of an amount of grant less than that claimed or refusing to approve payment of a grant;
(f) a decision of the Secretary under subsection 16 (4) approving payment of an additional amount less than that claimed or refusing to approve payment of an additional amount;
(g) a decision of the Secretary under subsection 17 (4) that there has been an overpayment;
(h) a decision of the Secretary for the purposes of section 19;
(j) a decision of the Secretary under subsection 22 (3) refusing to approve the operation of a ship in accordance with an application;
(k) a decision of the Secretary under subsection 22 (7) refusing to approve the operation of a ship in accordance with an application; or
(m) a decision of the Secretary under subsection 35 (2) refusing to make a declaration.
(2) Without limiting section 43 of the Administrative Appeals Tribunal Act 1975, where the Administrative Appeals Tribunal is reviewing a decision referred to in paragraph (1) (e), (f) or (g) in relation to a ship, the Tribunal may:
(a) if a determination under subsection 18 (1) or (2) has been made in relation to the ship—either:
(i) set aside that determination; or
(ii) set aside that determination and make a further determination under subsection 18 (1) or (2), as the case may be, in relation to the ship; or
(b) if a determination under subsection 18 (1) or (2) has not been made in relation to the ship—make a determination under subsection 18 (1) or (2), as the case may be, in relation to the ship;
if it considers it appropriate to do so.
(3) In subsection (1), “decision” has the same meaning as in the Administrative Appeals Tribunal Act 1975.
Statement to accompany notice of decisions
39. (1) Where the Secretary makes a decision of a kind referred to in subsection 38 (1) and gives to a person whose interests are affected by the decision notice in writing of the making of the decision, that notice shall include a statement to the effect that, subject to the Administrative Appeals Tribunal Act 1975, application may be made to the Administrative Appeals Tribunal for review of the decision to which the notice relates by or on behalf of the person or persons whose interests are affected by the decision.
(2) Any contravention of subsection (1) in relation to a decision does not affect the validity of the decision.
Saving of other laws
40. Without limiting section 25, this Act shall not be read and construed as being in derogation of, or in substitution for, the Navigation Act 1912 or any other law of the Commonwealth, or any law of a State, relating to the construction and seaworthiness of ships.
Appropriation
41. Grants are payable out of the Consolidated Revenue Fund which is appropriated accordingly.
Regulations
42. The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
[Minister’s second reading speech made in—
House of Representatives on 2 April 1987
Senate on 7 May 1987]