Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to repeal the International Shipping (Australian-resident Seafarers) Grants Act 1995 and to amend the Ships (Capital Grants) Act 1987, and for related purposes
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Introduced HR 01 May 1996

Shipping Grants Legislation Bill 1996
Supplementary Explanatory Memorandum

1996

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

SHIPPING GRANTS LEGISLATION BILL 1996

SUPPLEMENTARY EXPLANATORY MEMORANDUM

Amendments to be Moved on Behalf of the Government

(Circulated by authority of the Minister for Transport and Regional Development, the Honourable John Sharp MP)

78589 Cat. No. 96 4954 9 ISBN 0644 44424X

SHIPPING GRANTS LEGISLATION BILL 1996

OUTLINE

The amendments to the Shipping Grants Legislation Bill 1996, to be moved by the Government, will restore the availability of capital grants to eligible ships which are commissioned and registered in Australia before 1 July 1997 and for which an agreement to purchase or construct was in place before 1 May 1996.

FINANCIAL IMPACT STATEMENT

The projected saving of $12 million in the Financial Impact Statement of the Explanatory Memorandum for the Shipping Grants Legislation Bill 1996 as a result of the early termination of the Ships (Capital Grants) Act 1987 will not eventuate.

NOTES ON CLAUSES

Amendment to Schedule 1

An additional item is to be included in Schedule 1 to the Shipping Grants Legislation Bill 1996

Item 4 - Continued application of the Act

Sub-item 4(1) provides that if, before 1 May 1996, a shipowner had made an agreement for the construction or purchase of a ship, and provided that the shipowner was an Australian national, then, despite the amendment to the Ships (Capital Grants) Act 1987 made by item 3 of the schedule, that Act, as in force immediately before the commencement of item 3, continues to apply in respect of that ship.

Sub-item 4(2) defines "Australian national" as being either an Australian citizen, as defined under the Australian Citizen Act 1948, or a body corporate established by or under a law of the Commonwealth or of a State or Territory.

The effect of item 4 is that an Australian shipowner who had a ship on order before 1 May 1996 will, subject to meeting the eligibility criteria specified in the Ships (Capital Grants) Act 1987, be entitled to a capital grant, provided that the ship is commissioned and registered in Australia before 1 July 1997.