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Coastal Shipping Reform

Regulation Impact Statement – Department of Infrastructure and Regional Development

On 25 June 2015, the Deputy Prime Minister and Minister for Infrastructure and Regional Development introduced a Bill in the House of Representatives to amend arrangements for vessels and crew trading between Australian ports. A Regulation Impact Statement (RIS) was prepared and certified by the Department of Infrastructure and Regional Development and was assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR). The Bill introduces a simplified permit system to give foreign and Australian flagged vessels access to coastal shipping. The bill also establishes a framework of entitlements for seafarers on foreign vessels engaging or intending to engage in coastal shipping for more than 183 days, and includes minimum entitlements for seafarers on Australian vessels that are registered on the Australian International Shipping Register when those vessels are engaged in coastal shipping work covered by the Fair Work Act 2009 (Fair Work Act). The Bill also establishes requirements to ensure foreign vessels engaged on the Australian coast for more than 183 days have two senior skilled crew members who are eligible to work in Australia because they are citizens or residents or hold a relevant visa. The RIS estimates these arrangements will have a net economic benefit of $667.4 million and reduce regulatory costs by $21.4 million per annum. The regulatory saving was agreed with the OBPR. As the reforms have been assessed by the OBPR as having a substantial impact on the sector and the economy, the Australian Government’s RIS process requires a post implementation review to be completed for the coastal shipping reforms within five years of being implemented.