Cutting Shipping Levy Will Save Industry $9 Million a Year
BUDGET INFRA 14/2014
13 May 2014
The Abbott Government will reduce the rate of the Protection of the Sea levy.
The decision will take effect from 1 July 2014 and will save ships visiting Australian ports around $9 million a year.
Removing the 2010 hike in the levy on ships entering ports will ease the cost of doing business in Australia and will put downward pressure on prices for consumers.
The former Labor Government increased the levy for shipping companies from 11.25 cents per net registered tonne to 14.25 cents to meet part of the cost of cleaning up the oil spill from the Pacific Adventurer, which occurred off the south east coast of Queensland in March 2009.
Since those costs have been more than met, the Coalition Government can reverse that increase.
The three cent reduction in the levy will help to tackle the competitive challenges the shipping industry faces.
The levy applies to ships of more than 24 metres in length entering an Australian port carrying more than 10 tonnes of oil in bulk as fuel or cargo.
It is payable quarterly and is used by the Australian Maritime Safety Authority to fund the National Plan for Maritime Environmental Emergencies.
The funds generated by the higher levy have been used to establish a $10 million pollution response reserve.
The Australian people have said they want a government that would fix the Budget and strengthen the economy. That is what we are doing.