Federal Register of Legislation - Australian Government

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A Bill for an Act to impose levies in relation to the employment of seafarers.
Administered by: Employment
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Registered 13 Oct 2016
Introduced HR 13 Oct 2016

2016

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

Seafarers Safety and Compensation Levies Bill 2016

 

No.      , 2016

 

(Employment)

 

 

 

A Bill for an Act to impose levies in relation to the employment of seafarers

  

  

  


Contents

Part 1—Preliminary                                                                                                             1

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 2

3............ Definitions.......................................................................................... 2

4............ Extent of Act....................................................................................... 3

Part 2—Seafarers insurance levy                                                                                 4

5............ Imposition of seafarers insurance levy................................................ 4

6............ Amount of seafarers insurance levy.................................................... 4

7............ By whom seafarers insurance levy payable......................................... 5

8............ Designated actuary.............................................................................. 5

9............ Recommendation about the actuarial component................................. 6

10.......... Recommendation about the administrative component........................ 7

Part 3—Seafarers cost recovery levy                                                                         9

11.......... Imposition of seafarers cost recovery levy.......................................... 9

12.......... Amount of seafarers cost recovery levy.............................................. 9

13.......... By whom seafarers cost recovery levy payable................................. 10

14.......... Recommendation about the cost recovery amount............................. 10

Part 4—Miscellaneous                                                                                                       12

15.......... Regulations....................................................................................... 12

 


A Bill for an Act to impose levies in relation to the employment of seafarers

The Parliament of Australia enacts:

Part 1Preliminary

  

1  Short title

                   This Act is the Seafarers Safety and Compensation Levies Act 2016.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

2.  Sections 3 to 13

At the same time as Part 3 of Schedule 2 to the Seafarers and Other Legislation Amendment Act 2016 commences.

 

3.  Section 14

The day after this Act receives the Royal Assent.

 

4.  Section 15

At the same time as Part 3 of Schedule 2 to the Seafarers and Other Legislation Amendment Act 2016 commences.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Definitions

                   In this Act:

actuary means a person who is a Fellow or an Accredited Member of the Institute of Actuaries of Australia.

amount includes $0.

Commission means the Safety, Rehabilitation and Compensation Commission.

cost recovery amount has the meaning given by subsection 12(2).

designated actuary has the meaning given by section 8.

employer has the same meaning as in the Seafarers Safety and Compensation Levies Collection Act 2016.

insurance amount has the meaning given by subsection 6(2).

prescribed vessel has the same meaning as in the Seafarers Rehabilitation and Compensation Act 1992.

quarter means a period of 3 months beginning on 1 January, 1 April, 1 July or 1 October.

seafarer berth means a berth on a prescribed vessel that is normally used by a seafarer to whose employment the Seafarers Rehabilitation and Compensation Act 1992 applies.

seafarers cost recovery levy has the meaning given by section 11.

seafarers insurance levy has the meaning given by section 5.

Note:          Sections 25B, 25C and 25D of the Seafarers Rehabilitation and Compensation Act 1992 deal with the application of that Act.

4  Extent of Act

                   This Act extends to all places outside Australia, including the external Territories.

Part 2Seafarers insurance levy

  

5  Imposition of seafarers insurance levy

             (1)  If, on the first day of a quarter, the following conditions are satisfied in relation to one or more seafarer berths:

                     (a)  the seafarer berths are on a particular prescribed vessel;

                     (b)  the seafarer berths are normally used by seafarers who are employed by a particular employer;

levy is imposed on those seafarer berths.

             (2)  Levy imposed by subsection (1) is to be known as seafarers insurance levy.

             (3)  Subsection (1) does not apply to a quarter that began before the commencement of this section.

Note:          See also sections 25M and 25N of the Seafarers Rehabilitation and Compensation Act 1992 (exemptions).

6  Amount of seafarers insurance levy

             (1)  The amount of seafarers insurance levy imposed on seafarer berths on a prescribed vessel is worked out using the formula:

Insurance amount

             (2)  For the purposes of this Act, insurance amount means:

                     (a)  $15; or

                     (b)  if:

                              (i)  the regulations declare that a specified amount is the actuarial component of the insurance amount; and

                             (ii)  the regulations declare that a specified amount is the administrative component of the insurance amount;

                            the sum of:

                            (iii)  the actuarial component of the insurance amount; and

                            (iv)  the administrative component of the insurance amount.

             (3)  Regulations must not be made for the purposes of subparagraph (2)(b)(i) unless:

                     (a)  the designated actuary has made a recommendation under subsection 9(1); and

                     (b)  the amount prescribed by those regulations is less than, or equal to, the amount specified in the most recent recommendation made by the designated actuary under subsection 9(1).

             (4)  Regulations must not be made for the purposes of subparagraph (2)(b)(ii) unless:

                     (a)  the Commission has made a recommendation under subsection 10(1); and

                     (b)  the amount prescribed by those regulations is less than, or equal to, the amount specified in the most recent recommendation made by the Commission under subsection 10(1).

7  By whom seafarers insurance levy payable

                   Seafarers insurance levy imposed on seafarer berths on a prescribed vessel is payable by the employer who employs the seafarers who normally use those berths.

8  Designated actuary

             (1)  The Commission may, by writing, determine that a specified actuary is the designated actuary for the purposes of this Act.

Note:          For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.

             (2)  A determination under subsection (1) is not a legislative instrument.

             (3)  As soon as practicable after making a determination under subsection (1), the Commission must publish the determination on the Commission’s website.

9  Recommendation about the actuarial component

             (1)  The designated actuary may give the Commission a written statement:

                     (a)  recommending that the actuarial component of the insurance amount should be a specified amount; and

                     (b)  setting out the designated actuary’s reasons for that recommendation.

             (2)  In making a recommendation under subsection (1), the designated actuary must have regard to the principle that amounts received by the Commonwealth by way of so much of the seafarers insurance levy as is attributable to the actuarial component of the insurance amount should be sufficient to offset the following amounts:

                     (a)  amounts payable, or prospectively payable, by Comcare in its capacity as an employer under subsection 4(3) of the Seafarers Rehabilitation and Compensation Act 1992;

                     (b)  premiums payable, or prospectively payable, for a policy of insurance or indemnity for any amount of Comcare’s liability under that Act.

             (3)  In making a recommendation under subsection (1), the designated actuary may:

                     (a)  rely on, or have regard to, the projections, findings, estimates, opinions or conclusions of any other actuaries who have conducted, or are conducting, actuarial reviews of the scheme embodied in the Seafarers Rehabilitation and Compensation Act 1992; and

                     (b)  make such assumptions and estimates as the designated actuary considers reasonable; and

                     (c)  have regard to such other matters as the designated actuary considers relevant.

             (4)  In making a recommendation under subsection (1) of this section, the designated actuary must disregard any policy of the Commonwealth Government that an amount should be prescribed for the purposes of subparagraph 6(2)(b)(i) that is less than the amount specified in the most recent recommendation made by the designated actuary under subsection (1) of this section.

             (5)  As soon as practicable after a statement is given to the Commission under subsection (1), the Commission must give the Minister a copy of the statement.

             (6)  As soon as practicable after a copy of a statement is given to the Minister under subsection (4), the Minister must cause a copy of the statement to be published on the Department’s website.

10  Recommendation about the administrative component

             (1)  The Commission may give the Minister a written statement:

                     (a)  recommending that the administrative component of the insurance amount should be a specified amount; and

                     (b)  setting out the Commission’s reasons for that recommendation.

             (2)  In making a recommendation under subsection (1), the Commission must have regard to the principle that amounts received by the Commonwealth by way of so much of the seafarers insurance levy as is attributable to the administrative component of the insurance amount should be sufficient to offset the following amounts:

                     (a)  expenditure that has been, or is likely to be, incurred in, or attributable to, the administration of the Seafarers Rehabilitation and Compensation Act 1992, so far as that administration concerns Comcare in its capacity as an employer under subsection 4(3) of that Act;

                     (b)  expenditure that has been, or is likely to be, incurred in, or attributable to, the administration of the Seafarers Rehabilitation and Compensation Special Account.

Note:          For the Seafarers Rehabilitation and Compensation Special Account, see section 107 of the Seafarers Rehabilitation and Compensation Act 1992.

             (3)  Paragraph (2)(a) of this section does not apply to an amount mentioned in paragraph 9(2)(a) or (b).

             (4)  In making a recommendation under subsection (1) of this section, the Commission must disregard any policy of the Commonwealth Government that an amount should be prescribed for the purposes of subparagraph 6(2)(b)(ii) that is less than the amount specified in the most recent recommendation made by the Commission under subsection (1) of this section.

             (5)  If the Seacare Advisory Group has been constituted under section 89RA of the Safety, Rehabilitation and Compensation Act 1988, then, before making a recommendation under subsection (1) of this section, the Commission must consult the Seacare Advisory Group.

Part 3Seafarers cost recovery levy

  

11  Imposition of seafarers cost recovery levy

             (1)  If, on the first day of a quarter, the following conditions are satisfied in relation to one or more seafarer berths:

                     (a)  the seafarer berths are on a particular prescribed vessel;

                     (b)  the seafarer berths are normally used by seafarers who are employed by a particular employer;

levy is imposed on those seafarer berths.

             (2)  Levy imposed by subsection (1) is to be known as seafarers cost recovery levy.

             (3)  Subsection (1) does not apply to a quarter that began before the commencement of this section.

Note:          See also sections 25M and 25N of the Seafarers Rehabilitation and Compensation Act 1992 (exemptions).

12  Amount of seafarers cost recovery levy

             (1)  The amount of seafarers cost recovery levy imposed on seafarer berths on a prescribed vessel is worked out using the formula:

Cost recovery amount

             (2)  For the purposes of this Act, cost recovery amount means:

                     (a)  $0; or

                     (b)  if another amount is prescribed by the regulations—that other amount.

             (3)  Regulations must not be made for the purposes of paragraph (2)(b) unless:

                     (a)  the Commission has made a recommendation under subsection 14(1); and

                     (b)  the amount prescribed by those regulations is less than, or equal to, the amount specified in the most recent recommendation made by the Commission under subsection 14(1).

Note:          Paragraph (b) enables a phasing‑in of cost recovery.

13  By whom seafarers cost recovery levy payable

                   Seafarers cost recovery levy imposed on seafarer berths on a prescribed vessel is payable by the employer who employs the seafarers who normally use those berths.

14  Recommendation about the cost recovery amount

             (1)  The Commission may give the Minister a written statement:

                     (a)  recommending that the cost recovery amount should be a specified amount; and

                     (b)  setting out the Commission’s reasons for that recommendation.

             (2)  In making a recommendation under subsection (1), the Commission must have regard to the principle that amounts received by the Commonwealth by way of seafarers cost recovery levy should be sufficient to offset the following amounts:

                     (a)  expenditure that has been, or is likely to be, incurred in, or attributable to, the administration of the Seafarers Rehabilitation and Compensation Act 1992 by Comcare or the Commission;

                     (b)  expenditure that has been, or is likely to be, incurred in, or attributable to, the administration of the Work Health and Safety Act 2011 by the Australian Maritime Safety Authority, Comcare or the Commission, so far as that Act applies because of subsection 12(8A) of that Act.

             (3)  Paragraph (2)(a) of this section does not apply to:

                     (a)  an amount mentioned in paragraph 9(2)(a) or (b) or 10(2)(a) or (b); or

                     (b)  an amount covered by a fee under the Seafarers Rehabilitation and Compensation Act 1992.

             (4)  Paragraph (2)(b) does not apply to an amount covered by a fee under regulations made under the Work Health and Safety Act 2011.

             (5)  In making a recommendation under subsection (1) of this section, the Commission must disregard any policy of the Commonwealth Government that an amount should be prescribed for the purposes of paragraph 12(2)(b) that is less than the amount specified in the most recent recommendation made by the Commission under subsection (1) of this section.

Note:          Such a policy will enable a phasing‑in of cost recovery.

             (6)  If the Seacare Advisory Group has been constituted under section 89RA of the Safety, Rehabilitation and Compensation Act 1988, then, before making a recommendation under subsection (1) of this section, the Commission must consult the Seacare Advisory Group.

Transitional

             (7)  For the purposes of the operation of this section before the commencement of sections 3, 9, 10 and 12, assume that the following provisions had commenced at the same time as this section:

                     (a)  the definition of Commission in section 3;

                     (b)  the definition of cost recovery amount in section 3;

                     (c)  paragraph 9(2)(a);

                     (d)  paragraph 9(2)(b);

                     (e)  paragraph 10(2)(a);

                      (f)  paragraph 10(2)(b);

                     (g)  subsection 12(2).

Note:          The making of a recommendation under subsection (1) of this section before the commencement of sections 3, 9, 10 and 12 facilitates the application of section 4 of the Acts Interpretation Act 1901 to the power to make regulations for the purposes of paragraph 12(2)(b).

Part 4Miscellaneous

  

15  Regulations

                   The Governor‑General may make regulations for the purposes of sections 6 and 12.