Commonwealth Numbered Regulations - Explanatory Statements

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FISHING LEVY REGULATIONS 2008 (SLI NO 1 OF 2008)

EXPLANATORY STATEMENT

Select Legislative Instrument 2008 No. 1

Issued by the authority of the Minister for Agriculture, Fisheries and Forestry

Fishing Levy Act 1991

Fisheries Management Act 1991

Fishing Levy Regulations 2008

Section 8 of the Fishing Levy Act 1991 (the Levy Act) empowers the Governor-General to make regulations for the purposes of section 6 of the Levy Act. Section 6 of the Levy Act provides that the amount of levy imposed on the fishing concession is the amount prescribed by the regulations. Section 5 of the Levy Act imposes a levy in respect of a fishing concession.

Section 168 of the Fisheries Management Act 1991 (the Management Act) empowers the Governor-General to make regulations for the purposes of the Management Act. Section 110 of the Management Act provides that the levy imposed by the Levy Act is due and payable at a time or times ascertained in accordance with the regulations made under the Management Act.

"Fishing Concession" is defined under the Levy Act and the Management Act to mean, among other things, a fishing permit or a statutory fishing right (SFR). A SFR is defined under the Management Act to mean, among other things, a right to take a particular quantity of fish, or a right to a particular proportion of the fishing capacity that is permitted by or under a plan of management for a fishery.

The Fishing Levy Regulations 2008 (the Regulations) repeal and replace the Fishing Levy Regulations 2006 (the 2006 Regulations) and relevant amending regulations, and set the amounts of levy payable on fishing concessions that relate to the 2007-08 financial year in fisheries managed by the Australian Fisheries Management Authority (AFMA) on behalf of the Commonwealth. Each year the Regulations are amended in accordance with the financial year budget cycle. The Regulations also specify the timeframes for when those amounts of levy are due and payable.

Fishing Levies

The government’s Cost Recovery Impact Statement (CRIS) for AFMA describes what costs are government and what costs should be recovered from the fishing industry. In accordance with the CRIS and legislation, AFMA recovers the attributable management costs from the holders of fishing concessions in each fishery in the form of a levy paid to the Commonwealth under the Levy Act and the Management Act, which is then paid to AFMA under arrangements provided for in the Fisheries Administration Act 1991.

The Regulations set the levy for those fisheries described in Part 2B of the Fisheries Management Regulations 1992 in addition to fisheries for which a plan of management has been determined in accordance with section 17 of the Management Act.

Neither the Levy Act nor the Management Act specify any conditions that need to be met before the power to make the Regulations may be exercised.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Regulations commenced the day after they were registered on the Federal Register of Legislative Instruments.

The levy amounts specified in the regulations includes the costs of developing and implementing management arrangements, surveillance costs, and the costs of running the management advisory committees (MACs). Other costs, such as the costs of prosecutions, are funded by the Commonwealth.

The levies are calculated on a fishery by fishery basis each year following the reconciliation of the previous years levies received and total recoverable costs such that any budget surplus or deficit is carried forward in the levy base.

Consultation with fishery stakeholders

The budgets on which the rates of levy for each fishery were based were prepared with advice from either:

• the management advisory committee (MAC) established by AFMA for the fishery; or

• if no MAC has been established for the fishery, the consultative body that AFMA liaises with when consulting about management of the fishery.

Most AFMA fisheries have MACs that comprise an independent Chair, industry members, an AFMA member, a science member and conservation member. Chairs and members are appointed by the AFMA Board.

The budgets for each fishery are developed from December to April each year and MACs/consultative bodies are involved throughout the process. When AFMA asks for formal (written) advice on draft budgets this is often minimal since most issues have been dealt with informally beforehand. Formal advice was received from a number of MACs/consultative bodies and is summarised below:

·        Bass Strait Central Zone Scallop MAC considered the draft budget and supported an additional $5,000 for port visits for AFMA officers to undertake port visits to present the results of the proposed survey and share information.

·        Coral Sea Fishery Stakeholder Committee considered the draft budget and noted the additional costs for compulsory observer coverage.

·        Eastern Tuna MAC considered the draft budget and noted the need to reduce the overall levy base, which is high as a proportion of the GVP for the fishery. Reductions will be particularly important once the levy subsidy ends, and the MAC sought to work with AFMA management to identify savings. Concern was expressed about high licensing costs and AFMA advised it would investigate ways to reduce the number of permit amendments required for the fishery.

·        South MAC considered the draft budget for the Heard Island and McDonald Islands Fishery and the Macquarie Island Toothfish Fishery but made no specific comment.

·        Northern Prawn MAC considered the draft Northern Prawn Fishery budget and expressed concern over the costs of licensing and quota management. While no immediate savings could be made AFMA undertook to review the budget for the fishery for 2008-9 taking into account any reduced fishing activity as a result of the government’s structural adjustment program.

·        WEST MAC considered the draft North West Slope Fishery and the Western Deepwater Trawl Fishery budgets. The MAC requested AFMA to make all efforts to reduce costs. AFMA has done so without compromising fishery management outcomes.

·        Small Pelagic Fishery MAC considered the draft Small Pelagic Fishery budget. The only advice was some change to the VMS component of the compliance budget which was made and is reflected in the 2007-08 budget.

·        Gillnet Hook and Trap MAC, Great Australian Bight MAC and the South East Trawl MAC considered the draft budgets for the Southern and Eastern Scalefish and Shark Fishery. GHATMAC queried compliance, licensing and observer costs. GABMAC considered that the budget should be reduced specifically querying compliance costs. SETMAC similarly queried the compliance budget. All the above matters were resolved and are reflected in the 2007-08 fishery budgets.

·        Skipjack Consultative Committee considered the draft Skipjack Fishery budget but made no formal comment.

·        Southern Bluefin Tuna MAC considered the draft Southern Bluefin Tuna Fishery budget but made no formal comment.

·        Squid MAC considered the draft budget for the Southern Squid Jig Fishery. A general comment was made about the amount of levy to be collected. AFMA has endeavoured to keep these to a minimum while meeting fishery outcomes.

·        Western Tuna and Billfish Fishery MAC considered the draft fishery budget and sought a reduction in the liaison component of the logbook budget, review of the model to allocate data costs and an examination of the compliance budget for additional savings. Some savings were made from the logbooks and compliance budgets through having a reduced liaison function and a reduction in the vessel monitoring system (VMS) polling levels. No savings could be made in the data management area as costs are recovered in accordance with the CRIS and the budget reflects the level of data management for the fishery.

In addition to the above consultation, AFMA is engaged generally with the Commonwealth Fisheries Association (CFA). The CFA is not involved in specific fishery matters however is consulted on a range of broader fisheries. The CFA is presently involved with AFMA’s Cost Reduction Working Group which is reviewing AFMA’s operating costs. Savings identified will start to be realised incrementally from the 2008/2009 financial years.

 

 

Regulatory Impact Statement

The Office of Best Practice Regulation (OBPR) advised AFMA that a Regulation Impact Statement was not required for the Regulations (ORR ID 9392). This is because the amendments are of a minor or machinery nature and do not substantially alter existing arrangements.

Calculation of the Levies

The fishing industry regularly expresses concerns about increases in fishery levies, particularly amidst the current environment of restructuring which has led to less concession holders to share the cost of management. The Australian Government anticipated this and announced in December 2005 that $15 million would be given to AFMA as a levy subsidy to offset the reduction in concession holders and reduce AFMA management levies in 2006-07, 2007-08 and 2008-09 as part of the Australian Government’s Securing Our Fishing Future package. Of the $15 million, $7 million was allocated in 2006-07, $5 million has been allocated this year, and $3 million is to be allocated in 2008-09.

The subsidy is intended to lessen the impact on concession holders remaining after those participating in the Business Exit Scheme have departed the fisheries and to allow the fishing industry time to restructure.

The pre-subsidy levy varies between years and is calculated by:

1.      Identifying the costs of management which form the basis of the fishery budget in accordance with AFMA’s Cost Recovery Impact Statement.  In determining the budget AFMA seeks advice from the relevant management advisory committee;

2.      Applying any adjustment for over or under recovery in the previous financial year as a result of either under expenditure or additional costs incurred after the budget was set.  Any variations to costs and programmes are reviewed by the relevant MAC;

3.      Attributing any allowance for expenditure on multi-year research projects, again noting that the MAC’s advice is sought on these items.

Together items 1 – 3 (above) form the pre-subsidy amount to which any offset from the levy subsidy is applied.  In apportioning the levy subsidy amongst the fisheries, the Australian Government Department of Agriculture, Fisheries and Forestry (DAFF) has provided figures to AFMA on the number of concessions in each fishery that were successful in the submission of tenders in round 1 & 2 of the Business Exit Scheme. The $5 million subsidy allocated this year has been applied in two steps (in accordance with the methodology provided by the previous government):

1.      The first part has been allocated to each fishery based on the levy shortfall caused by concessions in the fishery being surrendered. This year, the amount of subsidy applied is 5/7th of that applied last financial year.

2.      After this offset has been applied, the remainder of the $5 million has been allocated on a proportional basis across all fisheries other than Torres Strait to which the Business Exit Scheme did not apply and the Informally Managed Fishery which is not managed under a plan of management, has four permit holders and a levy base of only $4,000 (not including the FRDC levy component). This means that each fishery AFMA manages has been allocated a share of the remaining subsidy equal to its proportion of the remaining management costs.

It is important to note that the $5 million subsidy allocated this year has been used to compensate for concessions accepted as successful in rounds 1 & 2 of the Business Exit Scheme, whereas for timing reasons the $7 million available in 2006-07 was used to compensate for those concessions accepted in round 1 only.

The total amount to be recovered from the whole industry prior to the levy subsidy has decreased by $10,956 from the 2006-07 year. However, in most fisheries the levy payable will increase due to the reduction in levy subsidy from $7 million in 2006-07 to $5 million in 2007-08. Further explanation on the costs of managing each fishery and any change in levy is provided in the following parts.

The levies for each individual fishing concession holder are calculated from the relevant fishery levy base of AFMA management and research costs, less the amount of levy subsidy flowing to the fishery. The amount is then divided between the number of fishing concessions, taking into account of, where relevant, their areas of access and fishing methods allowed. The Regulations identify the amount of levy for each type of fishing concession in each fishery payable on a date or dates within this financial year.

 

Details of the FISHING LEVY REGULATIONS 2008 are set out below.

Part 1 Preliminary

Regulation 1 provides for the Regulations to be cited as the Fishing Levy Regulations 2008.

Regulation 2 provides that the Regulations commence on the day after they are registered in the Federal Register of Legislative Instruments.

Regulation 3 repeals the Fishing Levy Regulations 2006 (the 2006 Regulations).

Regulation 4 defines terms used in the Regulations. In particular, subregulation 4(1) defines:

·        "invoice date" for levy or an instalment of levy, means the date specified as its date of issue on the invoice issued by the Australian Fisheries Management Authority for the levy or instalment;

·        "Levy Act" to mean the Fishing Levy Act 1991;

·        "Management Act" to mean the Fisheries Management Act 1991; and

·        "Management Regulations" to mean the Fisheries Management Regulations 1992.

Subregulation 4(2) provides that unless the contrary intention appears, any words or expressions used in the Regulations and in the Management Regulations have the same meaning in the Regulations as in the Management Regulations.

Subregulation 4(3) provides that an expression that is used in the Regulations in relation to a fishery for which there is a plan of management made under section 17 of the Act, and is also used in that plan, has the same meaning in the Regulations as in the plan, unless a contrary intention appears.

Regulation 5 provides that where the Regulations use the name of a fishery corresponding to one described in the Management Regulations or in a plan of management, the reference is to the fishery described by those Regulations or that plan. This ensures that levy provisions in the Regulations apply to areas consistent with those covered by other management arrangements.

Note 1 lists all the fisheries currently subject to the Management Regulations with the exception of the Christmas Island and Cocos (Keeling) Islands Fishery, which is now managed by the Australian Government Department of Transport and Regional Services, and the pelagic longline sector which is now managed under the relevant AFMA tuna fisheries.

Note 2 lists all the fisheries currently managed under a plan of management made under section 17 of the Management Act.

 

Part 2 Bass Strait Central Zone Scallop Fishery

Regulation 6 defines a term used in the Part.

Regulation 7 sets the levy payable for a Bass Strait Central Zone Scallop Fishery (BSCZSF) commercial scallop quota SFR in force on or after 1 January 2008 as $0.3367.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$139,066

$65,206

$73,860

$237,853

$84,860

$152,993

+71%

+107%

 

There has been a 107% increase in the levy for 2007-08. One off cost savings from 2005-06, associated with reduced licensing, compliance and logbook costs, reduced the 2006-07 levy by $51,112 from 2005-06. The levy base for 2007-08 is higher as there is no year on year cost saving and a periodic survey of the fishery to determine stock status was planned. Without a survey there will be no current information on which to set a total available catch. If the fishery survey is not undertaken in 2007-08 then savings are expected and these can be carried forward into 2008-2009.

 

Regulation 8 provides that levy is payable on 29 January 2008 or 28 days after the invoice date for the levy, whichever is later.

 

Part 3 Coral Sea Fishery

Regulation 9 defines a term used in the Part.

Regulation 10 sets the levy payable for a Coral Sea Fishery fishing permit in force on or before 30 June 2008. The levy is made up of two components: a base amount (Tier 1) levy plus an additional amount (Tier 2) for each sector of the fishery to which the permit provides access to. Tier 1 levies cover costs incurred equally across each fishing sector. The differential rates of Tier 2 levy have been calculated to reflect the management costs incurred in relation to each sector of the fishery. The Tier 1 levy is $1,456.63 for each permit. The Tier 2 amounts are:

• for the aquarium fish sector - $168.27;

• for the lobster and/or trochus sectors - $2,208.10;

• for the line sector - $7,041.36;

• for the trawl sector - $9,139.34; and

• for the sea cucumber sector - $5,355.42.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$ 81,243

$36,606

$44,637

$178,260

$55,841

$122,419

+119%

+174%

The 2007-08 levy base of $178,260 represents a significant (119%) increase over the 2006-07 figure. The single biggest line item increase in the budget arises from the decision at the 2007 Coral Sea Fishery Stakeholder meeting to fund observer coverage through the levy base instead of directly billing individual operators. This has resulted in an additional $33,012 being added to the budget to cover these services.

The remainder of the budget increases are due to smaller, but still significant increases in management staff time, research, logbooks, and data management, predominantly in response to meeting the requirements of the Ministerial Direction and Harvest Strategy Policy.

Regulation 11 provides that levy is payable on 31 March 2008 or 28 days after the invoice date for the levy, whichever is the later.

 

 

Part 4 Eastern Tuna and Billfish Fishery

Regulation 12 defines a term used in the Part.

Regulation 13 also sets the levy payable for an Eastern Tuna and Billfish Fishery (ETBF) fishing permit in force on or after the commencement of the Regulations and on or before 30 June 2008.

The ETBF is divided into sectors (referred to in regulation 13) based on area and method of fishing. A fishing permit for the fishery allows an operator to fish in one or more sectors.

The amount of levy that is payable is set out in Table 13 of regulation 13 for the sector that is included as a condition on a fishing permit. If the permit authorises fishing in two or more sectors of the fishery, the amount payable is the greater or greatest amount of levy shown in Table 13 for each of the sectors.

Table 13 specifies the following levy amounts:

Sector

Total Levy

Amount ($)

ML Sector

1,947.54

PL Sector

1,853.30

PLL (Sub-area 1) Sector

11,667.51

PLL (Sub-area 2) Sector

10,514.51

PLL (Sub-area 4) Sector

6,098.54

PLL (Sub-area 6) Sector

5,852.04

PLL (Sub-area 7) Sector

5,852.04

PLL (Sub-area 8) Sector

5,852.04

PLL (Sub-area 9) Sector

3,408.54

PLL (Sub-area 10) Sector

1,571.94

Area Z

1,571.94

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$2,585,655

$1,809,900

$775,755

$2,376,863

$1,233,501

$1,143,362

-8%

+47%

 

The ETBF levy base for 2007-08 has decreased due to savings in the previous year being carried forward. The under expenditure in 2006-07 was the result of reduced management staff time, unutilised research funds, and lower than predicted data management costs.

Regulation 14 provides that levy is due and payable either in full or in two equal instalments. Either the full amount or the first instalment is payable by the later of 29 January 2008 or 28 days after the invoice date for the instalment. The second instalment, if any, is payable by the later of 10 April 2008 or 28 days after the invoice date for the instalment.

Under subregulation 14(5), if a fishing permit is in force on 10 April 2008 but not on 29 January 2008, the levy is due 28 days after the invoice date for the levy.

 

Part 5 Heard Island and McDonald Islands Fishery

Regulation 15 defines a term used in the Part.

Regulation 16 sets the levy payable for a Heard Island and McDonald Islands (HIMI) Fishery SFR in force on commencement of the Regulations at $9.65 per SFR.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount

payable

after subsidy

$812,280

$365,989

$446,291

$722,663

$204,230

$518,433

-11%

+16%

The industry levy base for the HIMI Fishery in 2007-08 has decreased by 11%. This is primarily due to the costs and timing of payments for the industry survey which has reduced from $471,455 to $361,568. Observer costs are expected to increase because there is an expectation of extra days at sea, which reflects operational requirements in taking the available catch.

While the costs for managing the fishery have been reduced in 2007-08, the levy has increased by 16% principally as a result of the application of the lower levy subsidy.

 

Regulation 17 provides that levy is payable either in full or in two equal instalments. Either the full amount or the first instalment is payable by 15 March 2008 or 28 days after the invoice date for the instalment, whichever is later. The second instalment, if any, is payable by 15 June 2008 or 28 days after the invoice date for the instalment, whichever is later.

 

Part 6 Informally Managed Fisheries

The informally managed fishery currently consists of four permits that authorise methods of fishing and areas of waters that do not presently fit within a fishery covered by a formal plan of management.

Regulation 18 defines the terms used in the Part.

Regulation 19 sets the levy payable for an Informally Managed Fishery fishing permit in force on or after 1 January 2008 and on or before 30 June 2008 as $1,060.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$13,157

$0

$13,157

$4,000

$0

$4,000

- 70%

- 70%

The 2007-08 levy has decreased by 70%, due to reduced management costs and economic rationalisation through the Government’s structural adjustment package. The levy subsidy has not been applied to Informally Managed Fishery permits as the fishery is not managed under a plan of management and is not described in regulation 4B of the Fisheries Management Regulations 1992.

Regulation 20 provides that levy is payable on 29 January 2008 or 28 days after the invoice date for the levy, whichever is later.

 

Part 7 Macquarie Island Toothfish Fishery

This Fishery is now called the Macquarie Island Toothfish Fishery (MITF) and not the Macquarie Island Fishery, as in previous years. The fishery name in the Regulations is now consistent with the Macquarie Island Toothfish Fishery Management Plan 2005.

As SFRs have now been issued under the Plan, levy will be collected on a per SFR basis. Previously the levy was collected from the single permit holder.

A total of 20,000 SFRs have been issued for the MITF (10,000 for the Aurora Trough sector and 10,000 for the Macquarie Ridge sector). The levy payable per SFR is the same for each sector of the Fishery.

Regulation 21 defines a term used in the Part.

Regulation 22 sets the levy payable for a statutory fishing right (SFR) in each of the two sectors (Aurora Trough and Macquarie Ridge) of the MITF which is in force at the commencement of the Regulations at $11.91 per SFR.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$101,404

$45,690

$55,714

$326,878

$92,378

$234,500

+222%

+321%

 

The levy has significantly increased in 2007-08 due to the inclusion of the deferred cost of $193,112 for the development of the Management Plan. These costs have accumulated over several years. This approach was adopted so the final SFR holders in the fishery paid for the cost of the Plan development in proportion to the number of SFRs held rather than the operator who had interim access bearing these costs. Some of the costs ($33,930) for managing the fishery in 2006-07 were deferred and are included as part of the total deferred amount of $193,112.

 

The 2007-08 levy base, without the total deferred costs of $193,112, would have been $133,766, meaning the actual cost of managing the fishery in 2007-08 is about the same as it was in 2006-07.

 

Regulation 23 provides that levy is payable either in full or in two equal instalments. Either the full amount of the first instalment is payable by 15 February 2008 or 28 days after the invoice date for the instalment, whichever is later. The second instalment, if any, is payable by 15 May 2008 or 28 days after the invoice date for the instalment, whichever is later.

 

Part 8 Northern Prawn Fishery

Regulation 24 defines a term used in the Part.

Regulation 25 sets the levy payable for a Northern Prawn Fishery (NPF) SFR in force on the day the regulations commence as $32.89.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$1,971,050

$983,311

$987,739

$1,840,875

$841,987

$998,888

-7%

+1%

The decrease in the levy base is due to excess receipts of $271,000 from the 2006-07 budget. This amount is primarily unspent research funds and indirect costs such as logbooks and compliance. The budget for the fishery has increased by $141,000, primarily due to an increase in research costs of $142,000 that have been supported by the Northern Prawn Fishery Management Advisory Committee (NORMAC). The research budget represents 39% of the budget for this fishery.

The amount payable per SFR has increased by 40% due to the reduced number of concession holders in the fishery after round two of the Structural Adjustment Package, an increase in NPF research costs, and the reduced levy subsidy.

Regulation 26 provides that levy is payable on 29 January 2008 or 28 days after the invoice date for the levy, whichever is later.

 

 

Part 9 North West Slope Fishery

 

Regulation 27 defines a term used in the Part.

 

Regulation 28 sets the levy payable for a North West Slope Fishery (NWSF) fishing permit that is in force on or after 30 June 2008 as $9,163.86 per permit.

 

 

2006-07

2007-08

% change

Levy

base

Levy subsidy applied

Amount payable after subsidy

Levy

base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy

base

Amount payable after subsidy

$61,264

$27,604

$33,660

$85,112

$24,053

$61,059

+39%

+81%

 

The increase in the levy base for the fishery is primarily due to an increase in the Western Management Advisory Committee (WESTMAC) costs as a result of increased travel costs and additional management staff time, as well as logbook and compliance costs.

 

The amount to be recovered has also increased because of a reduction in the levy subsidy.

 

Regulation 29 provides that the levy is payable on 29 January 2008 or 28 days after the invoice date for the levy, whichever is later.

 

Part 10 Small Pelagic Fishery

Regulation 30 defines a term used in the Part.

Regulation 31 sets the levy payable for a Small Pelagic Fishery (SPF) fishing permit in force on or after the date this Regulation comes into force and on or before 30 June 2008 as $3,601.99.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

563,360

257,853

305,507

370,645

107,246

263,999

-34%

-14%

There is a decrease of 34%, due to reduced research expenditure.

Regulation 32 provides that levy is payable on 31 March 2008 or 28 days after the invoice date for the levy, whichever is later.

 

Part 11 Southern and Eastern Scalefish and Shark Fishery

Subregulation 33(1) defines the terms used in the Part.

The Southern and Eastern Scalefish and Shark Fishery (SESSF) incorporates the management of the previously individually managed East Coast Deep Water Zone Fishery (ECDWZF - now known as ECDT); Great Australian Bight Trawl Fishery (GABTF); Gillnet Hook and Trap Fishery (GHTF); South East Trawl Fishery (SETF) (or Commonwealth Trawl Sector); and the Commonwealth Victorian Inshore Trawl Fishery (now known as the Victorian Coastal Waters Sector (VCW)) under a single management framework; the Southern and Eastern Scalefish and Shark Fishery Management Plan 2003 (SESSF Management Plan).

Under the SESSF Management Plan the fishery is managed under SFRs and permits for different sectors of the SESSF.

At industry’s request the budget for the SESSF fishery will continue to be managed in terms of the previous individually managed fisheries. As a result the SESSF budget is a combined total of the ECDT, GABTF, GHTF, SETF, and VCW budgets. It should be noted however, that while the Fishing Levy Regulations 2008 detail levy information by sector permits, boat SFRs and quota SFRs, this document discusses the levy amounts to be collected in terms of individual fishery budgets with a view to explaining proposed increases or decreases in levy.

Subregulations 40(3) and 47(3) provide that all SESSF levies mentioned in subregulations 34(2), 35(2), 36(2), 37(2), 38(2), 39(2), 41(2), 42(2), 43(2), 44(2), 45(2), and 46(2) are due and payable either in full or in two equal instalments. Subregulations 40(5) and 47(5) provide that either the full amount or the first instalment is payable by 29 January 2008 or 28 days after the invoice date for the instalment, whichever is later. Subregulations 47(5) and 40(5) also provide that the second instalment, if any, is payable by 30 April 2008 or 28 days after the invoice date for the instalment, whichever is later.

·        East Coast Deep Water Trawl Fishery Budget

Subregulation 34(1) defines a term used in regulation 34.

 

Subregulation 34(2) sets the levy payable for a SESSF ECDT fishing permit in force on or after 1 January 2008 and on or before 30 April 2008 as $2,493.70.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$4,158

$2,508

$1,650

$49,704

$25,367

$24,337

+1,095%

+1,375%

The recoverable levy amount to be collected for 2007-08 has significantly increased from 2006-07 due to excess receipts of $36,638 collected in 2005-06 which provided an offset for the 2006-07 budget. Without the one off excess receipts from 2005-06 decreasing the 2006-07 levy base, the increase in the costs of management would be $8,908 or 22%.

This increase is a result of additional staff time required for the allocation process for alfonsino quota Statutory Fishing Rights and increasing costs of maintaining licensing and more complex registers.

·        Great Australian Bight Trawl Fishery (GABTF) Budget

Subregulation 36(1) defines a term used in regulation 36.

The levy payable for a GABTF boat SFR is $44,091.84. Levy is collected on quota SFRs of $0.0117 for Bight redfish, $0.0091 for deepwater flathead, and $0.0146 for orange roughy (Albany and Esperance). GABTF operators also pay levy on shark quota of $0.2514 for each quota unit of school shark, $0.2847 for each quota unit of gummy shark, $0.1939 for each quota unit of sawshark, and $0.0925 for each quota unit of elephant fish family mentioned on the permit at the time the permit is granted.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$867,391

$390,821

$476,570

$630,527

$178,192

$452,335

-27%

-5%

The recoverable fishery management costs decreased by 5% from 2006-07 because the 2006-07 levy included the recovery of a large over-expenditure from the 2005-06 year. This over-expenditure did not occur in 2006-07 and consequently 2007-08 has a much lower levy base.

While the levy base was reduced by 27% the reduced levy subsidy to the fishery results in the amount payable by fishers only being 5% less than 2006-07.

Subregulation 36(2) sets the levy payable for a SESSF GABT quota species fishing permit in force on or after 1 January 2008 and on or before 30 April 2008. It also sets the levy payable for a SESSF GABT Boat SFR in force on 1 January 2008. SESSF GABT quota species fishing permits authorise the take of shark species that are managed under a quota system consistent with the Gillnet Hook and Trap Fishery and South East Trawl Fishery.

·        Gillnet Hook and Trap Fishery Budget

The levy payable for a Gillnet Boat SFR is $1,337.53; a Scalefish Hook Boat SFR $4,576.58; a Shark Hook Boat SFR $2,174.65; a SESSF GHT fishing permit $2,029.68; and a GHT Trap fishing permit $5,533.16. Levy amounts for quota species are listed in the table below.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$1,270,699

$622,934

$647,765

$1,970,979

$681,744

$1,289,235

+55%

+99%

The levy base for the GHATF in 2007-08 is an increase of 55% from 2006-07. The increase is in part due to a one off underspend of $438,388 in the 2005-06 year, which resulted in a significantly lower levy base in 2006-07. This underspend was largely a result of delays in the finalisation of research projects. Without the one off underspend in the 2005-06 year decreasing the 2006-07 levy base, the increase in the levy base would be $261,892 or 15%.

The remaining increase in costs are due to additional licensing transactions, greater observer coverage, and the implementation of a fishing independent survey as required by the 2005 Ministerial Direction.

The reduction in levy subsidy further increases the amount payable.

 

Subregulations 35(1), 37(1), 39(1), 40(1), 41(1), 42(1), 43(1) and 44(1) define terms used in their respective regulations.

 

Levies relating to the GHT Sector of the SESSF are set out as follows:

 

·        SESSF Gillnet Boat SFR (subregulation 42(2));

·        SESSF Scalefish Hook Boat SFR (subregulation 43(2)); and

·        SESSF Shark Hook Boat SFR (subregulation 44(2))

 

where the relevant SFR is in force on 1 January 2008; and

 

·        SESSF SEQ quota species Fishing Permit (subregulation 35(2));

·        SESSF GHT coastal waters Fishing Permit (subregulation 37(2)); and

·        SESSF GHT Trap Fishing Permit (subregulation 39(2)),

 

where the relevant permit is in force on or after 1 January 2008 and on or before 30 April 2008.

 

Levy on quota species on permits

Species

Amount for each quota unit on Fishing Permit

School shark

$0.2514

Gummy shark

$0.2847

Sawshark

$0.1939

Elephant fish family

$0.0925

 

 

 

 

 

Levy on quota SFR species

 

Levy Amount

(per Quota SFR)

Species

Total 2007-08

Blue eye trevalla

$0.1236

Blue grenadier

$0.0827

Blue warehou

$0.0242

Flathead

$0.1078

Gemfish —eastern sector

$0.0476

Gemfish —western sector

$0.0605

Jackass morwong

$0.0439

John dory

$0.1339

Mirror dory

$0.0606

Ocean perch

$0.0812

Orange roughy (Cascade Plateau zone)

 

$0.0908

Orange roughy — orange roughy (eastern zone)

 

$0.0129

Orange roughy (southern zone)

 

$0.0012

Orange roughy (western zone)

$0.0205

Pink ling

$0.1916

Redfish

$0.0570

Royal red prawn

$0.0314

School whiting

$0.0135

Silver trevally

$0.0165

Spotted warehou

$0.1495

 

·        Victorian Coastal Waters Sector Budget

Subregulation 38(1) defines a term used in regulation 38.

Subregulation 38(2) sets the levy payable for a SESSF VCW (previously referred to as the Commonwealth Victorian Inshore Trawl Fishery) fishing permit in force on or after
1 January 2008 and on or before 30 April 2008 as $975.64.

 

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$27,039

$12,183

$14,856

$36,970

$16,826

$20,144

+37%

+36%

The recoverable levy amount to be collected for 2007-08 has increased 36% to $20,144.00. The increase is a result of AFMA allocating additional staff time to develop and implement new management arrangements in the VCW Sector and increasing licensing transactions.

·        South East Trawl Fishery (SETF) (previously Commonwealth Trawl Sector )

Subregulation 45(1) defines a term used in regulation 45.

Subregulation 45(2) sets the levy payable for a SESSF Trawl Boat SFR in force on 1 January 2008 as South East Trawl Fishery Boat SFR is $5,754.44. Levy amounts for quota species are the same as those listed in the table in the Gillnet Hook and Trap section above.

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$2,268,147

$1,174,093

$1,094,054

$2,727,481

$905,291

$1,822,190

+20%

+67%

The levy base increased in 2007-08 in part due to an underspend of $424,478 in 2005-06 which was used to reduce the levy base in 2006-07. This underspend was largely a result of delays in the finalisation of research projects. Without this one off underspend in the 2005-06 year decreasing the 2006-07 levy base, the increase in the levy base would be $34,856 or 1%.

Whilst the levy base for the SETF has increased by 20% the recoverable levy (post subsidy) has increased by 67% because of the reduction in the levy subsidy applied to the fishery.

Levy amounts for quota species are calculated based on the gross value of production for each species in a method supported by the Management Advisory Committee. Each quota species attracts a proportion of the levy base according to the GVP of that species, with the proportion being that species’ GVP contribution to the total GVP for all quota species (see the table in the Gillnet Hook and Trap section above).

 

 

 

 

Part 12 Southern Bluefin Tuna Fishery

Regulation 48 defines a term used in the Part.

Regulation 49 sets the levy payable in the fishery for a Southern Bluefin Tuna (SBT) SFR in force on 15 January 2008 as $0.1754 per SFR.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$1,503,785

$677,561

$826,224

$1,159,373

$327,648

$831,725

-23%

+1%

The 23% reduction in the levy base for 2007-08 is due to a number of savings across the budget including overheads, research, and staff costs. The reduction is also due to surplus funds totalling $99,280 remaining from the 2006-07 budget.

While the levy base has decreased in 2007-08, the subsidised levy and therefore the rate per SFR has increased by 1% because of the reduction in the amount of levy subsidy.

Regulation 50 provides that levy is payable on 11 February 2008, or within 28 days after the invoice date for the instalment, whichever is later.

 

Part 13 Southern Squid Jig Fishery

Regulation 51 defines a term used in the Part.

Regulation 52 sets the levy for each gear SFR in the Southern Squid Jig Fishery (SSJF) in force on 1 January 2008 as $16.39.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$243,452

$121,396

$122,056

$165,394

$63,692

$101,702

-32%

-17%

The 2007-08 management cost for the fishery has decreased to $165,394 down from $243,452, a decrease of 32% as a consequence of savings in compliance and management advisory committee costs during 2006-07.

Regulation 53 provides that levy for the fishery is payable on the later of 29 February 2008 or 28 days after the invoice date for the levy.

 

 

Part 14 South Tasman Rise Fishery

Regulation 55 sets the levy payable for a South Tasman Rise Fishery fishing permit in force on or after 1 January 2008 and on or before 30 June 2008 as $641.86.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$7,870

$3,546

$4,324

$5,677

$1,604

$4,073

-28%

-6%

The decrease in the budget is a result of reduced management costs as fishing permits were not granted for the fishery in 2007, following discussions with the New Zealand Government over management arrangements for this high seas fishery.

Regulation 56 provides that levy is payable on 31 March 2008 or 28 days after the invoice date for the levy, whichever is later.

 

Part 15 Western Deep Water Trawl Fishery

 

Regulation 57 defines a term used in the Part.

 

Regulation 58 sets the levy for the Western Deep Water Trawl Fishery (WDWTF) fishing permit in force on or before 30 June 2008 as $4,905.37 per permit.

 

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$61,290

$27,616

$33,674

$74,221

$20,975

$53,246

+21%

+58%

 

The increase in the levy base is primarily due to an increase in the Western Management Advisory Committee (WESTMAC) costs as a result of increased travel costs and additional management staff time which was approved by WESTMAC.

 

The amount payable also increased due to a reduction in the amount of levy subsidy.

 

Regulation 59 provides that the levy is payable on 29 January 2008 or 28 days after the invoice date for the levy, whichever is later.

 

 

 

Part 16 Western Tuna and Billfish Fishery

AFMA is currently in the process of granting statutory fishing rights (SFRs) under the Western Tuna and Billfish Fishery Management Plan 2005 (the Plan). The Levy Regulations for the Western Tuna and Billfish Fishery (WTBF) seek to collect the levy from all eligible persons, who will be receiving a grant of SFRs. This will be achieved through the collection of levy on a per fishing permit basis (for those eligible persons who have maintained their fishing permit) or on the basis of a boat SFR issued once SFRs (for those eligible persons who have not maintained their fishing permit nor paid levy) are formally granted in the fishery.

AFMA considers that all eligible persons who are granted SFRs should contribute to the cost of managing the fishery including contribution to the development of the Plan and the costs associated with the complex allocation process. It is considered inequitable to have those operators who have maintained their fishing permits having to bear the costs for those operators who have not maintained their permits, but who will receive an allocation of SFRs.

Regulation 60 defines the terms used in the Part.

Regulation 61 sets the rate of levy for those eligible persons who have maintained their WTBF fishing permit. These eligible persons had also maintained their permits in previous years and paid the appropriate levy.

 

2006-07

2007-08

% change

Levy base

Levy subsidy applied

Amount payable after subsidy

Levy base

Levy subsidy applied

Amount payable 2007-08 after subsidy

Levy base

Amount payable after subsidy

$401,304

$199,919

$201,385

$398,132

$134,565

$263,568

-1%

+31%

The levy base for the fishery has reduced in 2007-08 by 1%. However, the recoverable levy has increased by 31% as a consequence of the lower levy subsidy and less unspent funds being carried over in 2007-08 compared to 2006-07.

The levy subsidy has reduced the management levy that would otherwise be collected by 34%, which compares to a reduction of 45% which applied in 2006-07.

The levy amount is:

·        $2,335.00 for a permit authorising the pelagic longline fishing method; compared to $1,991.00 in 2006-07

·        $1,849.00 for a permit authorising the use of any other line fishing methods; compared to $1,659.00 in 2006-07; or

·        $1,314.00 for a permit authorising the purse seine fishing method; compared to $1,094.00 in 2006-07

If more than one method is allowed to be used under a fishing permit, then only the greater or greatest of the rates of levy specified above is payable.

Regulation 62 specifies the date the levy becomes due and payable for those eligible persons who hold a leviable WTBF fishing permit as 28 days after the invoice date for the levy.

Regulation 63 remits the levy payable where an eligible person has renewed their fishing permit and does not pay levy by the due date. In this circumstance levy then becomes payable under regulation 65 on the issue of a leviable boat SFR.

Regulation 64 provides that a person who has paid levy for a WTBF fishing permit before the boat SFR is granted does not have to pay levy after the boat SFR is granted.

Regulation 65 sets the levy rates for those eligible persons who have maintained their WTBF fishing permit in 2007-08, and do not pay levy before the grant of a boat SFR. The levy becomes payable on the grant of a boat SFR. The levy amount is:

·        $2,335.00, for a leviable WTBF boat SFR granted to an eligible person who held a longline fishing permit during the 2007-08 financial year but did not pay levy under regulation 61;

·        $1,849.00, for a leviable WTBF boat SFR granted to an eligible person who held a fishing permit which authorised just minor line fishing during the 2007-08 financial year but did not pay levy under regulation 61; or

·        $1,314.00, for a leviable WTBF boat SFR granted to an eligible person who held a purse seine fishing permit during the 2007-08 financial year but did not pay levy under regulation 61.

Regulation 66 sets the levy rates for those eligible persons who have not maintained their WTBF fishing permit in 2007-08, but who had done so in previous years. The levy becomes payable on the grant of a boat SFR. The levy amounts are identical to those set in regulation 61.

Regulation 67 sets the levy rates for those eligible persons who have not maintained their WTBF fishing permits in either one of, but not both of, 2005-06 or 2006-07. The levy becomes payable on the grant of a boat SFR. The amount to be collected is the appropriate amount specified in regulation 61 plus an amount equal to that paid by other operators in 2006-07. The levy amount is:

·        $4,326.00, for a leviable WTBF boat SFR granted to an eligible person who held a longline fishing permit during one of, but not both of, the 2005-2006 or
2006-07 financial years;

·        $3,508.00, for a leviable WTBF boat SFR granted to an eligible person who held a fishing permit which authorised just minor line fishing during the one of, but not both of, the 2005-2006 or 2006-07 financial years; or

·        $2,408.00, for a leviable WTBF boat SFR granted to an eligible person who held a purse seine fishing permit during one of, but not both of, the 2005-2006 or 2006-07 financial years.

Regulation 68 sets the levy rates for those eligible persons who have not maintained their WTBF fishing permits in 2005-06, 2006-07 and 2007-08. The levy becomes payable on the grant of a boat SFR. The amount to be collected is the appropriate amount specified in Regulation 61 plus the appropriate amount that was paid by other operators in 2005-06 and 2006-07. The levy amount is:

·        $8,705.00, for a leviable WTBF boat SFR granted to an eligible person who held a longline fishing permit during the 2004-05 financial year but not in subsequent years;

·        $6,583.00, for a leviable WTBF boat SFR granted to an eligible person who held a fishing permit which authorised just minor line fishing during the 2004-05 financial year but not in subsequent years; or

·        $4,930.00, for a leviable WTBF boat SFR granted to an eligible person who held a purse seine fishing permit during the 2004-05 financial year but not in subsequent years.

Regulation 69 makes provision for a person to surrender their boat SFR within 28 days of the grant to avoid the need to pay outstanding levy. This provision is for those eligible persons who have agreed to surrender SFRs granted under the Plan to not incur a levy liability.

Regulation 70 specifies the date the levy becomes due and payable for those eligible persons who hold a leviable WTBF boat SFR as 28 days after the invoice date for the levy.


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