FISHING LEVY REGULATIONS 2017 (F2017L01423) EXPLANATORY STATEMENT

Commonwealth Numbered Regulations - Explanatory Statements

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FISHING LEVY REGULATIONS 2017 (F2017L01423)

 EXPLANATORY STATEMENT

 

 

Issued by Authority of the Parliamentary Secretary to the Minister for Agriculture and
Water Resources

 

Fishing Levy Act 1991

 

Fisheries Management Act 1991

 

Fishing Levy Regulations 2017

 

Legislative Authority

 

The Fishing Levy Act 1991 (the Levy Act) imposes a levy in respect of fishing concessions.

 

The Fisheries Management Act 1991 (the Management Act) provides for the efficient and cost effective management of Commonwealth Fisheries; the exploitation of fisheries resources in a manner consistent with the principles of ecologically sustainable development; the maximising of the net economic returns to the Australian community; the ensuring of accountability to the fishing industry; and the achievement of government targets in relation to the recovery of the costs to Australian Fisheries Management Authority (AFMA).

 

Section 8 of the Levy Act provides that the Governor-General may make regulations for the purposes of section 6 of the Levy Act. Section 168 of the Management Act provides that the Governor-General may make regulations for the purposes of the Management Act.

 

Section 5 of the Levy Act imposes a levy in respect of a fishing concession. 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 110 of the Management Act provides that the levy imposed by the Levy Act is due and payable at a time or times prescribed in accordance with the regulation.

 

"Fishing concession" is defined, under the Levy Act and the Management Act, to mean a fishing permit, a statutory fishing right (SFR) or a foreign fishing license.  An 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.

 

Purpose

 

The purpose of the Fishing Levy Regulations 2017 (the Regulations) is to:

*        repeal the Fishing Levy Regulation 2016 and replace it with updated provisions;

*        set the amounts of levy payable on fishing concessions;

*        set the timeframes for when those amounts of levy are due and payable for the 2017-18 financial year; and

*        set the levy amounts for the 15 fisheries that are described in regulation 4B of the Fisheries Management Regulations 1992 (Management Regulations) and in fisheries management plans that have been determined in accordance with section 17 of the Management Act.

 

Background

 

In accordance with Government policy, AFMA recovers the costs of fishery management from the owners of fishing concessions in accordance with AFMA's Cost Recovery Implementation Statement 2017 (2017 CRIS).  The 2017 CRIS was approved by the Hon Barnaby Joyce MP on 9 December 2016. Cost recovery occurs through payment of fishery management costs as annual levies and any applicable, fishery specific fee for service charges. The 2017 CRIS is available at: http://www.afma.gov.au/wp-content/uploads/2017/05/AFMA-Cost-Recovery-Implementation-Statement-2017.pdf.

The Regulations prescribe the amount to be paid by fishing concession holders, which is approximately $14,067 million for the 2017-18 financial year. This amount comprises the cost recovery amount budgeted by the Australian Fisheries Management Authority (AFMA), plus or minus the acquittal from the previous financial year. 

This amount also includes a research component that will be paid to the Fisheries Research and Development Corporation, which for 2017-18 is approximately $986,513.  AFMA collects this research component as part of its annual levy processes.

 

AFMA is required to prepare a cost recovery budget to cover the costs of Commonwealth fisheries management (excluding the Torres Strait Prawn Fishery) from concession holders each financial year.  This includes the costs of developing and implementing management arrangements, data collection and the costs of running the management advisory committees.  The 2017-18 cost recovered budget was calculated to be $14,785 million (excluding the Torres Strait Prawn Fishery), which is an increase of 0.08 per cent on the previous year. Levy amounts for the Torres Strait Prawn Fishery are prescribed in a separate regulation.

 

Consultation

 

The cost recovered budget for each fishery has been prepared in consultation with either the relevant fishery Management Advisory Committee (MAC), established under section 54 of the Fisheries Administration Act 1991, or the relevant consultative body for fisheries that do not have a MAC. There has also been consultation with the peak industry body, the Commonwealth Fisheries Association (CFA).

 

AFMA entered into detailed discussions with the CFA between 9 March and 16 May 2017.  As a result the CFA urged AFMA to consult with the industry associations.  The CFA is supportive of AFMA providing a greater range of fee for service options rather than levy based charges. Industry responses to consultation rounds were considered by AFMA prior to the finalisation of the cost recovered budget for 2017-18.

 

Consistent with the carve-out agreement made with the Office of Best Practice Regulation on 30 June 2014, AFMA is not required to complete a Regulation Impact Statement in relation to this instrument.  Under this agreement the annual setting of cost recovery levies is considered machinery in nature (ID 14421).

 

 

 

 

Impact and Effect

 

The impact of the Regulations is that it requires fishing concession owners to pay levy to the Commonwealth government.  The amount of levy payable depends on the quantity and types of fishing concessions held which, in turn, reflect the level of activity AFMA needs to undertake to manage the relevant fishery and/or fish stock. The effect of the Regulations is to enable fishing concession owners to utilise their fishing concessions in the relevant Commonwealth fishery.  This occurs because AFMA's cost-recovered activities include the administration of the fishing concessions system, the setting of sustainable catch limits using the best available science, developing and implementing the fishing rules and monitoring fishing activity.

 

Following the acquittal of an over collection in the AFMA budget from the 2016-17 financial year, the amount to be recovered from fishing concession holders for the 2017-18 financial year has increased by 1.54 per cent on the previous year to $14,067 million.  Although the overall amount to be collected from the Commonwealth fishing industry has increased slightly, the amount to be recovered from each fishery varies due to factors including:

*        changes in management and research priorities for each fishery;

*        adjustments for prior year over/under collections; and

*        any changes during the financial year that alter the amount of resources required to administer the fishery.

 

There are three fisheries and one sector of the Southern and Eastern Scalefish and Shark Fishery where there has been a decrease in levy for the 2017-18 financial year compared with the previous financial year. These are:

*        Northern Prawn Fishery 15.89 per cent ($302,176)

*        North West Slope Fishery 21.15 per cent ($19,920)

*        Southern Squid Jig Fishery 16.35 per cent ($23,717)

*        Southern and Eastern Scalefish and Shark Fishery

o   Commonwealth South East Trawl 22.08 per cent ($725,096)

 

There are eleven fisheries and two sectors of the Southern and Eastern Scalefish and Shark Fishery where there has been an increase in levy for the 2017-18 financial year compared with the previous financial year. These are:

*        Bass Strait Central Zone Scallop Fishery 31.83 per cent ($92,261)

*        Coral Sea Fishery 53.91 per cent ($72,253)

*        Eastern Tuna and Billfish Fishery 13.37 per cent ($208,075)

*        Heard and McDonald Island Fishery 16.59 per cent ($157,365)

*        Macquarie Island Fishery 40.73 per cent ($86,187)

*        Eastern Skipjack Fishery and Western Skipjack Fishery 25.57 per cent ($11,623)

*        Small Pelagic Fishery 22.27 per cent ($288,138)

*        Southern and Eastern Scalefish and Shark Fishery

o   Gillnet, Hook and Trap 4.36 per cent ($107,939)

o   Great Australian Bight 67.04 per cent ($203,479)

*        Southern Bluefin Tuna Fishery 29.19 per cent ($257,279)

 

*        Western Deepwater Trawl Fishery 2.98 per cent ($1,330)

*        Western Tuna and Billfish Fishery 5.91 per cent ($14,304)

 

Note: the Eastern Skipjack Fishery and Western Skipjack Fishery are administered under a single budget.

 

The Regulations are compatible with the human rights and freedoms recognised or declared under section 3 of the Human Rights (Parliamentary Secretary) Act 2011. A full statement of compatibility is set out in Attachment B.

 

The Regulations are a legislative instrument for the purposes of the

Legislation Act 2003.

Details of the Regulations

 

Details of the Regulations, including rates of levy and when the levy is due and payable, are set out in Attachment A.

 

 

 

 


 ATTACHMENT A

 

Details of the Fishing Levy Regulations 2017

Part 1- Preliminary

Section 1 - Name of Regulations

This section provides that the name of the Regulations is the Fishing Levy Regulations 2017 (the Regulations).

Section 2 - Commencement

This section provides for the Regulations to commence the day after the instrument is registered.

Section 3 - Authority

This section provides that the Regulations are made under the Fishing Levy Act 1991 and the Fisheries Management Act 1991.

Section 4 - Schedules

This section provides that the Fishing Levy Regulation 2016 is repealed by Schedule 1.

Section 5 - Definitions

This section defines terms used in the Regulations.

Subsection 5(2) provides that expressions used in the Management Regulations have the same meaning as amended from time to time in the Regulations.

Subsection 5(3) provides that an expression used in the Regulations in relation to a fishery that has a plan of management under the Management Act has the same meaning in the Regulations as it has in the plan of management as amended from time to time.

 

The Management Regulations and plans of management made under the Management Act can be found at the Federal Register of Legislation's website, (https://www.legislation.gov.au/).

Section 6 - References to fisheries

This section provides that, where a reference is made to a fishery in the Regulations, it is a reference to the fishery as described in the Management Regulations or in a plan of management as amended from time to time.

The Management Regulations and plans of management made under the Management Act can be found at the Federal Register of Legislation's website (https://www.legislation.gov.au/).

 

 

 

Part 2 - Amount of levy

Section 7 - Prescribed amounts of levy

This section provides that Part 2 of the Regulations prescribes the amount of levy payable.

Section 8 - Bass Strait Central Zone Scallop Fishery (BSCZSF)

Subsection 8(1) defines a leviable BSCZSF quota statutory fishing right (SFR).

Subsection 8(2) sets the levy payable for a BSCZSF commercial scallop quota SFR in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect to a leviable BSCZSF SFR is $0.8925; including a research component of $0.0328.

Comparison of the BSCZSF levy base between 2016-17 and 2017-18.

 

 

 

 

 

 

2016-17

2017-18

  Difference

 

$

$

$

%

Cost recovered budget

209 538

287 764

78 226

37.33

Prior year (over)/under recoveries

80 309

99 017

 

 

Fee for service

-

(4 672)

 

 

Amount payable (excludes FRDC)

289 847

382 109

92 262

31.83

There has been a 31.83 per cent ($92 262) increase in the levy amount for 2017-18 ($382 109) compared to the levy amount payable for 2016-17 ($289 847). This increase has primarily resulted from an overspend in 2016-17 due to additional expenditure relating to the 2017 Scallop Survey.

To calculate the levy payable for each commercial scallop quota SFR the research component ($14 595) is added to the total management levy to be collected ($382 109) and then divided by the number of commercial scallop quota SFRs in the fishery (444 500).

Section 9 - Coral Sea Fishery (CSF)

Subsection 9(1) defines a leviable CSF fishing permit.

Subsection 9(2) sets the levy payable for a CSF fishing permit in force at any time on or after the commencement of the Regulations and before 30 June 2018.

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. The Tier 1 levy covers general management costs incurred equally across each sector including salaries, travel, logbook processing, data management, licensing and compliance costs. Tier 2 levies reflect observer costs associated with each sector of the fishery.

The amount of levy with respect to a leviable Tier 1 CSF fishing permit levy is $11,522.31; including a research component of $42.69 per permit.

The amount of levy with respect to leviable Tier 2 CSF permits is:

*         Hand collection - $753.70 (6 permits); and

*         Line, Trap and Trawl - $1,808.88 (10 permits).

Comparison of the CSF levy base between 2016-17and 2017-18.

 

 

2016-17

 

2017-18

 

    Difference

 

 

$

$

$

%

Cost recovered budget

155 243

180 245

25 002

16.11

Prior year (over)/under recoveries

21 211

(27 124)

 

 

Fee for service

 

(1 084)

 

 

Amount payable (excludes FRDC)

134 032

206 285

72 253

53.91

There has been a 53.91 per cent ($72 253) increase in the levy amount payable for 2017-18 ($206 285) compared to the levy amount payable for 2016-17 ($134 032). This is primarily the result of an overspend in 2016-17 related to the stakeholder meeting and associated management time and contractors, as well as an increase in the 2017-18 budget due to management time required to review the harvest strategies (an outcome from the stakeholder meeting).

The levy payable for each permit is split into two tiers. Tier 1 ($11 522.31) is the levy amount paid by all 16 permit holders representing general fisheries costs. Tier 2 represents the observer budget ($22 611) which is split based on expected use, 80 per cent to Line, Trap and Trawl and 20 per cent to Hand Collection.

Section 10 - Eastern Skipjack Fishery (ESF)

Subsection 10(1) defines a leviable ESF fishing permit.

Subsection 10(2) sets out the levy payable for a ESF fishing permit in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect to a leviable ESF permit is $1 841.10; there is no research component.

Comparison of the Skipjack Fisheries levy base between 2016-17 and 2017-18.

 

 

2016-17

2017-18

     Difference

 

$

$

$

%

Cost recovered budget

78 066

84 606

6 540

8.38

Prior year (over)/under recoveries

(32 615)

(27 468)

 

 

Fee for service

 

 

(64)

 

 

Amount payable (excludes FRDC)

45 451

57 074

11 623

25.57

There has been a 25.57 per cent ($11 623) increase in the levy payable for 2017-18 ($57 074) compared to the levy payable for 2016-17 ($45 451). This increase to the overall levy amount is mainly due to the inclusion of activities and costs under the 2017 CRIS that were not previously cost recovered.

The ESF is managed under a single budget for the Western Skipjack Fishery (WSF) and ESF combined. The method used to calculate the levies combines the number of permits from both fisheries and then divides the total levy base by the total number of permits. There are currently 17 permits in the ESF and 14 permits in the WSF. Therefore, to determine the individual levies the levy base of $57 074 has been divided by 31 permits.

Section 11 - Eastern Tuna and Billfish Fishery (ETBF)

Subsection 11(1) defines leviable ETBF boat and quota SFRs.

Subsection 11(2) sets the levy payable for ETBF SFRs in force at any time on or after the commencement of the Regulations and before 30 June 2018, as:

 

Item

Management Component

Research Component

Total Levy

Longline Boat SFR

$3 852.13

-

$3 852.13

Minor Line Boat SFR

$1 895.80

-

$1 895.80

Albacore Tuna Quota SFR

$0.0815

$0.007

$0.0885

Bigeye Tuna Quota SFR

$0.2203

$0.0190

$0.2393

Broadbill Swordfish Quota SFR

$0.2571

$0.0222

$0.2793

Striped Marlin Quota SFR

$0.0539

$0.0047

$0.0586

Yellowfin Tuna Quota SFR

$0.5592

$0.0483

$0.6075

 

Comparison of the ETBF levy base between 2016-17 and 2017-18.

 

 

2016-17

2017-18

     Difference

 

$

$

$

%

Cost recovered budget

1 490 158

1 692 261

202 103

13.56

Prior year (over)/under recoveries

66 554

115 382

 

 

Fee for service

-

(42 856)

 

 

 

Amount payable (excludes FRDC)

1 556 712

1 764 787

208 075

13.37

There has been a 13.37 per cent ($208 075) increase in the levy amount payable for 2017-18 ($1 764 787) compared to the levy amount payable for 2016-17 ($1 556 712). The increase has resulted from a combination of an overspend in 2016-17 due to higher monitoring costs, an increase in monitoring and research activities in 2017-18 and the inclusion of activities and costs under the 2017 CRIS that were not previously cost recovered.

There is a two tiered system for the payment of levies in the ETBF.  Tier 1 represents the fixed costs of managing the fishery.  These costs are divided between Longline Boat SFRs and Minor Line Boat SFRs, with two thirds of the Tier 1 levy recovered equally amongst Longline Boat SFR holders and the remaining one third recovered equally from Minor Line Boat SFR holders.  Tier 2 represents the costs which are variable depending on the level of fishing effort, such as compliance data collection, logbooks and observers.  These costs are divided between each Quota SFR based on the relative market value of each quota species.

Operators who wish to fish in the Coral Sea Zone of the fishery are required to hold both a Longline Boat SFR and a Coral Sea Zone Boat SFR, hence there is no separate charge for a Coral Sea Zone Boat SFR.

Section 12 - Heard Island and McDonald Islands Fishery (HIMIF)

Subsection 12(1) defines a leviable HIMIF quota SFR.

Subsection 12(2) sets the levy payable for a HIMIF quota SFR in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect to a leviable HIMIF SFR is $22.3898; including a research component of $3.9599.

Comparison of the HIMIF levy base between 2016-17 and 2017-18.

 

 

2016-17

2017-18

     Difference

 

$

$

$

%

Cost recovered budget

1 458 815

1 332 883

-125 932

-8.63

Prior year (over)/under recoveries

(60 388)

223 373

 

 

Fee for service

 

(450 000)

(450 464)

 

 

Amount payable (excludes FRDC)

948 427

1 105 792

157 365

16.59

There has been a 16.59 per cent ($157 365) increase in the levy amount payable for 2017-18 ($1 105 792) compared to the levy amount payable for 2016-17 ($948 427).  The increase is due to more observer days required than budgeted for in 2016-17 which resulted in a $223 373 overspend in the 2016-17 budget.

To calculate the levy payable for each SFR, the research component ($237 593) is added to the total management levy ($1 105 792) to be collected and then divided by the number of commercial SFRs in the fishery (60 000).

Section 13 - Macquarie Island Toothfish Fishery (MITF)

Subsection 13(1) defines a leviable MITF quota SFR.

Subsection 13(2) sets the levy payable for a MITF quota SFR in force at any time on the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect of a leviable MITF quota SFR is $16.1631; including a research component of $1.2725.

Comparison of the MITF levy base between 2016-17and 2017-18.

 

 

2016-17

2017-18

Difference

 

$

$

$

%

 

Cost recovered budget

292 337

324 327

31 990

10.94

 

Prior year (over)/under recoveries

(17 237)

38 593

 

 

 

Fee for service

(63 475)

(65 108)

 

 

 

Amount payable (excludes FRDC)

211 625

297 812

86 187

40.73

 

There has been a 40.73 per cent ($86 187) increase in the levy amount payable for 2017-18 ($297 812) compared to the levy amount payable for 2016-17 ($211 625). The increase has resulted from a combination of an overspend in 2016-17 due to more observer days required than budgeted for in 2016-17 and an increase in research costs for the fishery during 2017-18.

To calculate the levy payable for each SFR, the research component ($25 450) is added to the total management levy ($297 812) to be collected and then divided by the number of commercial SFRs in the fishery (20 000).

Section 14 - Northern Prawn Fishery (NPF)

Subsection 14(1) defines a leviable NPF gear statutory fishing rights (SFRs).

Subsection 14(2) sets the levy payable for a NPF gear SFR that is in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect to a leviable gear SFR is $53.10, including a research component of $8.03.

 

Comparison of the NPF levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

   Difference

 

$

$

$

%

Cost recovered budget

2 047 819

1 759 533

288 286

-14.08

Prior year (over)/under recoveries

(146 494)

(156 244)

 

 

Fee for service

 

(4 140)

 

 

Amount payable (excludes FRDC)

1 901 325

1 599 149

302 176

-15.89

There has been a 15.89 per cent ($302 176) decrease in the levy amount payable for 2017-18 ($1 599 148) compared with the levy amount payable for 2016-17 ($1 901 325). This decrease is primarily attributable to an underspending of levies in 2016-17 and lower research costs, including no spawning surveys for Tiger Prawns. The cost recoverable budget component of the 2017-18 NPF budget has decreased by 14.08 per cent ($288 286) compared to the previous year, again, due primarily to the reduced expenses on research.

To calculate the levy payable for each NPF gear SFR, the total research component ($284 918) is added to the total management component to be collected ($1 599 148) and divided by the number of gear SFRs in the fishery (35 479).

Section 15 - North West Slope Trawl Fishery (NWSTF)

Subsection 15(1) defines a leviable NWSTF fishing permit.

Subsection 15(2) sets the levy payable for a NWSTF fishing permit in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect to a leviable NWSTF fishing permit is $10 994.71, including a research component of $385.00.

Comparison of the NWSTF levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

     Difference

 

$

$

$

%

Cost recovered budget

113 079

117 091

4 012

3.55

Prior year (over)/under recoveries

(18 891)

(41 171)

 

 

Fee for service

 

(1 652)

 

 

Amount payable (excludes FRDC)

94 188

74 268

19 920

-21.15

 

There has been a 21.15 per cent ($19 920) decrease in the levy amount payable for 2017-18 ($74 268), compared to the levy amount payable for 2016-17 ($94 188) as a result of an underspending of levies in 2017-18. The cost recoverable budget component of the 2017-18 NWSTF budget has increased by $4 012 (3.55 per cent) compared to the previous year as a result of an increase in the costs of licencing, registration and policy support.

To calculate the levy payable for each NWSTF fishing permit, the total research component ($2695) is added to the total management component ($74 268) and divided by the number of permits in the fishery (7).

Section 16 - Small Pelagic Fishery (SPF)

Subsection 16(1) defines a leviable SPF quota SFR.

Subsection 16(2) sets the levy payable for a SPF quota SFR in force at any time on or after the commencement of the Regulations and before 30 June 2018.

 

The amount of levy in respect to a leviable SPF quota SFR is $0.026325; including the research component of $0.000409.

Comparison of the SPF levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

    Difference

 

$

$

$

%

Cost recovered budget

1 104 667

1 319 456

214 789

24.73

Prior year (over)/under recoveries

289 304

263 569

 

 

Fee for service

(100 000)

(916)

 

 

Amount payable (excludes FRDC)

1 293 971

1 582 109

288 138

22.27

 

There has been a 22.27 per cent ($288 138) increase in the levy amount payable for 2017-18 ($1 582 109) compared to the levy amount payable for 2016-17 ($1 293 971). The increase has resulted from a combination of an overspend in 2016-17 due to increased management costs and additional agreed research projects and increases to costs in 2017-18, primarily increased research costs and increased management costs including bycatch management. Changes in the 2017 CRIS have also resulted in components of the budget being cost recovered from 2017 18 onwards. These include the bycatch component of the management costs, policy support, and the support and maintenance of Pisces and GoFish within the licencing costs.  

 

To calculate the levy payable for each SPF quota SFR, the total research component ($24 965) is added to the total management component to be collected ($1 582 109) and divided by the number of quota SFRs in the fishery (61 047 305).

 

 

 

 

Section 17 and Section 18 - Southern and Eastern Scalefish and Shark Fishery (SESSF)

The SESSF incorporates the management of the previously individually managed East Coast Deepwater Trawl Fishery (ECDT); the Great Australian Bight Trawl Fishery (GABT); the Gillnet Hook and Trap Fishery (GHT); the Commonwealth South East Trawl Fishery (CSET); and the Victorian Coastal Waters Fishery (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 different sectors are managed under a system of SFRs and permits. The total amount to be recovered through levies is split between fishing concessions granted under the management plan. This includes permits, boat Statutory Fishing Rights (SFRs) and individual species quota SFRs. A levy allocation model developed in consultation with industry is used each year to determine how to split the total recoverable amount between the different concession types. Generally, the cost of species stock assessments and associated research are allocated to quota SFRs, and management costs are split based on whether the levied activity is relevant to boat SFRs/permits or quota SFRs.

At industry's request the total budget for the SESSF continues to be set in terms of the individually managed sectors. As a result the SESSF budget is a combined total of the GABT, GHT and CSET budgets.

Subsection 17(1) defines leviable SESSF boat and quota SFRs.

Subsection 17(2) prescribes the levy amounts for SESSF boat SFRs.

Subsection 17(3) prescribes the levy amounts for SESSF quota species SFRs.

Subsection 17(4) prescribes the levy amounts for SESSF quota species SFRs for species caught in a particular sectors or zones of the SESSF.

Subsection 18(1) defines leviable SESSF fishing permits.

Subsection 18(2) prescribes the levy amounts for fishing permits (other than quota fishing permits) for the SESSF.

Subsection 18(3) prescribes the levy amounts for certain species caught under quota fishing permits.

Subsection 18(4) prescribes that if a leviable SESSF quota fishing permit ceases to be in force on 30 April 2018 and an equivalent leviable SESSF quota SFR comes into force as at 1 May 2018, then the levy payable in respect to the quota fishing permit would be equal to two thirds of the total annual levy.

*         Great Australian Bight Trawl Sector (GABT)

The total levy base for the fishery is $524 730 including a research component of $17 738. A fishing concession holder will pay an amount per quota species as shown in the table below to recover the total amount payable for the GABT.

The table below sets out the levy payable for GABT boat and quota SFRs in force at any time on or after the commencement of the Regulations and before 30 June 2018 as;

 

Item

Management Component

Research Component

Total Levy

GABT boat SFR

$50 699.20

-

$50 699.20

Bight redfish quota SFR

-

$0.00349

$0.00349

Deepwater flathead quota SFR

-

$0.00472

$0.00472

Orange roughy (GAB Albany and Esperance zones) quota SFR

-

$0.00047

$0.00047

 

Comparison of the GABT levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

    Difference

 

$

$

$

%

Cost recovered budget

362 049

509 708

147 659

40.78

Prior year (over)/under recoveries

(58 536)

(592)

 

 

Fee for service

 

(2 124)

 

 

Amount payable (excludes FRDC)

303 513

506 992

203 479

67.04

There has been a 67.04 per cent ($203 479) increase in the levy amount payable for 2017-18 ($506 992) compared to the levy payable for 2016-17 ($303 513). This increase is primarily because a fishery independent survey planned for 2016-17 has been deferred until 2017-18.

*         Gillnet Hook and Trap Sector (GHT)

The total levy base for the fishery is $2 427 294 including a research component of $58 050. A fishing concession holder will pay an amount per quota species as shown in the table below to recover the total amount payable for the GHT.

The table below sets out the levy payable for GHT boat SFRs and permits in force at any time on or after the commencement of the Regulations and before 30 June 2018 as;

 

Item

Management Component

Research Component

Total Levy

GHT gillnet boat SFR

$6 577.92

$20.74

$6 598.66

GHT scalefish boat SFR

$3 013.51

$9.50

$3 023.01

GHT shark hook boat SFR

$5 400.28

$17.02

$5 417.30

GHT fishing permit

$2 404.59

$7.58

$2 412.17

GHT trap fishing permit

$4 129.63

$13.02

$4 142.65

GHT autolongline fishing permit

$5 506.17

$17.36

$5 523.53

Comparison of the GHT levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

          Difference

 

$

$

$

%

Cost recovered budget

2 417 850

2 658 455

240 605

10.00

Prior year (over)/under recoveries

(59 333)

(234 932)

 

 

Fee for service

 

(54 280)

 

 

Amount payable (excludes FRDC)

2 477 183

2 369 243

-107 940

-4.36

There has been a 4.36 per cent ($107 940) decrease in the levy amount payable for 2017-18 ($2 369 243) compared to the levy amount payable for 2016-17 ($2 477 183). This is mainly due to an increase in monitoring costs which was offset by an underspend due to lower fishery management, logbook and management advisory committee costs.

*         Commonwealth South East Trawl Sector (CSET)

The total levy base for the fishery is $2 667 781 including a research component of $108 908 A fishing concession holder will pay an amount per quota species as shown in the table below to recover the total amount payable for the CSET.

The table below sets out the levy payable for CSET boat SFRs and permits in force at any time on or after the commencement of the Regulations and before 30 June 2018 as;

 

Item

Management Component

Research Component

Total Levy

CSET trawl boat SFR

$7 844.26

-

$7 844.26

ECDT trawl fishing permit

$458.59

-

$458.59

VCW trawl fishing permit

$327.56

-

$327.56

 

Comparison of the CSET levy base between 2016-17 and 2017-18.

 

 

2016-17

2017-18

   

    Difference

 

$

$

$

%

Cost recovered budget

3 402 432

2 767 025

-635 407

-18.67

Prior year (over)/under recoveries

(118 462)

(176 091)

 

 

Fee for service

 

(32 060)

 

 

Amount payable (excludes FRDC)

3 283 970

2 558 874

-725 096

-22.08

There was a 22.08 per cent ($725 096) decrease in the levy amount payable for 2017-18 ($2 558 874) compared to the levy payable for 2016-17 ($3 283 970).  The large decrease in the cost recovered budget reflects no fishery independent survey budgeted for the 2017-18 financial year as well as an underspend for the 2016-17 financial year due to budgeted staff time and observer coverage.

A number of quota species are caught in both the GHT and CSET sectors of the SESSF.  The following table sets out the levy payable for SESSF quota SFRs in force at any time on or after the commencement of the Regulations and before 30 June 2018.

 

Item

Management Component

Research Component

Total Levy

Alfonsino

$0.00296

$0.00011

$0.00307

Blue eye trevalla

$0.24067

$0.00905

$0.24972

Blue grenadier

$0.04631

$0.00174

$0.04805

Blue warehou

$0.00145

$0.00005

$0.00150

Deepwater shark (eastern)

$0.02691

$0.00101

$0.02792

Deepwater shark (western)

$0.04741

$0.00178

$0.04919

Elephant fish

$0.21766

$0.00818

$0.22584

Flathead

$0.29592

$0.01112

$0.30704

Gemfish (eastern)

$0.07526

$0.00283

$0.07809

Gemfish (western)

$0.06637

$0.00249

$0.06886

Gummy shark

$0.35976

$0.01352

$0.37328

Jackass morwong

$0.02627

$0.00099

$0.02726

John dory

$0.10248

$0.00385

$0.10633

Mirror dory

$0.04800

$0.00180

$0.04980

Ocean perch

$0.09348

$0.00351

$0.09699

Orange roughy (Cascade Plateau)

$0.00005

$0.00000

$0.00005

Orange roughy (eastern)

$0.02238

$0.00084

$0.02322

Orange roughy (southern)

$0.00185

$0.00007

$0.00192

Orange roughy (western)

$0.00600

$0.00023

$0.00623

Oreodory (other)

$0.02618

$0.00098

$0.02716

Pink ling

$0.48054

$0.01806

$0.49860

Redfish

$0.19137

$0.00719

$0.19856

Ribaldo

$0.09242

$0.00347

$0.09589

Royal red prawn

$0.05383

$0.00202

$0.05585

Saw shark

$0.13756

$0.00517

$0.14273

School shark

$0.52863

$0.01987

$0.54850

School whiting

$0.12057

$0.00453

$0.12510

Silver trevally

$0.03020

$0.00114

$0.03134

Silver warehou

$0.06481

$0.00244

$0.06725

Smooth oreodory (Cascade Plateau)

$0.00001

$0.00000

$0.00001

Smooth oreodory

$0.01704

$0.00064

$0.01768

Section 19 - Southern Bluefin Tuna Fishery (SBTF)

Subsection 19(1) defines a leviable SBTF quota SFR.

Subsection 19(2) sets the levy payable for a SBTF quota SFR in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect of a leviable SBTF quota SFR is $0.2306; including a FRDC component of $0.0168.

Comparison of the SBTF levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

  Difference

 

$

$

$

%

Cost recovered budget

970 519

1 200 432

229 913

23.69

Prior year (over)/under recoveries

(89 264)

(60 119)

 

 

Less Fee for Service

 

(1 780)

 

 

Amount payable (excludes FRDC)

881 254

1 138 533

257 279

29.19

There has been a 29.19 per cent ($257 278) increase in the levy amount payable for 2017-18 ($1 138 533) compared to the levy amount payable for 2016-17 ($881 254). The increase is mainly due to the SBT monitoring contract costs for the ranching sector increasing due to the change under the 2017 CRIS from being 50% cost recovered to 100% cost recovered. 

 

To calculate the levy payable for each SBTF quota SFR the research component ($89 218) is added to the total management levy to be collected ($1 138 533). The total ($1 227 751) is then divided by the number of commercial SBTF quota SFRs in the fishery (5 324 422).

Section 20 - Southern Squid Jig Fishery (SSJF)

Subsection 20(1) defines a leviable SSJF gear SFR.

Subsection 20(2) sets the levy payable for each SSJF gear SFR in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect to a leviable SSJF gear SFR is $25.3802; including an FRDC component of $0.6163.

Comparison of the SSJF levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

     Difference

 

$

$

$

%

Cost recovered budget

171 028

132 874

-38 154

-22.31

Prior year (over)/under recoveries

(25 968)

(9 951)

 

 

Fee for service

-

(1 580)

 

 

Amount payable (excludes FRDC)

145 060

121 343

-23 717

-16.35

There has been a 16.35 per cent ($23 717) decrease in the levy payable for 2017-18 ($121 343) compared to the levy payable for 2016-17 ($145 060). This decrease is associated with a decrease in the schedule of costs for the research project currently underway to improve the fleet's ability to locate squid, and management costs.  This decrease has been slightly offset by increases relating to the new CRIS which results in components of licencing (the support and maintenance of Pisces and GoFish) now being cost recovered, along with policy support.

To calculate the levy payable for each SSJF gear SFR, the research component ($3 020) is added to the total management levy to be collected ($121 343) and then divided by the number of commercial SSJF gear SFRs in the fishery (4 900).

Section 21 - Western Deepwater Trawl Fishery (WDTF)

Subsection 21(1) defines a leviable WDWTF fishing permit.

Subsection 21(2) sets the levy payable for a WDTF fishing permit in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect to a leviable WDTF fishing permit is $4 235.09; including a FRDC component of $57.27.

Comparison of the WDTF levy base between 2016-17 and 2017-18.

 

 

2016-17

2017-18

Difference

 

$

$

$

%

Cost recovered budget

105 156

115 122

9 966

9.47

Prior year (over)/under recoveries

(60 529)

(69 1134)

 

 

Fee for service

 

(52)

 

 

Amount payable (excludes FRDC)

44 627

45 957

1 330

2.98

There has been a 2.98 per cent ($1 330) increase in the levy payable for 2017-18 ($45 957) compared to the levy amount payable for 2016-17 ($44 627). This increase is attributable to the increased cost of licensing, registration and policy in 2017-18. The cost recoverable budget component of the 2017-18 WDTF budget has increased by 9.47 per cent ($9 966) compared to the previous year, again, primarily due to increased costs of licensing, registration and policy support. 

To calculate the levy payable for each WDTF fishing permit, the total research component ($630) is added to the total management component to be collected ($45 956) and divided by the number of fishing permits in the fishery (11).

Section 22 - Western Skipjack Fishery (WSF)

Subsection 22(1) defines a leviable WSF fishing permit.

Subsection 22(2) sets out the levy payable for a WSF fishing permit in force at any time on or after the commencement of the Regulations and before 30 June 2018.

The amount of levy in respect of a leviable WSF permit is $1 841.10; there is no research component.

Comparison of the Skipjack Fisheries levy base between 2016-17 and 2017-18.

 

 

2016-17

2017-18

     Difference

 

$

$

$

%

Cost recovered budget

78 066

84 606

6 540

8.38

Prior year (over)/under recoveries

(32 615)

(27 468)

 

 

Fee for service

 

 

(64)

 

 

Amount payable (excludes FRDC)

45 451

57 074

11 623

25.57

There has been a 25.57 per cent ($11 623) increase in the levy payable for 2017-18 ($57 074) compared to the levy payable for 2016-17 ($45 451). This increase to the overall levy amount is mainly due to the inclusion of activities and costs under the 2017 CRIS that were not previously cost recovered.

The WSF is managed under a single budget for both the WSF and Eastern Skipjack Fishery (ESF). The method used to calculate the levies combines the number of permits from both fisheries and then divides the total levy base by the total number of permits. There are currently 14 permits in the WSF and 17 permits in the ESF. Therefore, to determine the individual levies the levy base of $57 074 has been divided by 31 permits.

Section 23 - Western Tuna and Billfish Fishery (WTBF)

Subsection 23(1) defines leviable WTBF boat and quota SFRs.

Subsection 23(2) sets the levy payable for a WTBF boat and quota SFRs in force at any time on or after the commencement of the Regulations and before 30 June 2018, as:

 

Item

Management Component

Research Component

Total Levy

Boat SFR

$976.34

$96.38

$1 072.72

Bigeye Tuna Quota SFR

$0.05396

-

$0.05396

Broadbill Swordfish Quota SFR

$0.05396

-

$0.05396

Striped Marlin Quota SFR

$0.05396

-

$0.05396

Yellowfin Tuna Quota SFR

$0.05396

-

$0.05396

Comparison of the WTBF levy base between 2016-17 and 2017-18.

 

 

2016-17

 

2017-18

 

     Difference

 

$

$

$

%

Cost recovered budget

264 594

302 945

38 351

14.49

Prior year (over)/under recoveries

(22 590)

(43 589)

 

 

Fee for service

 

(3 048)

 

 

Amount payable (excludes FRDC)

242 004

256 308

14 304

5.91

There has been a 5.91 per cent ($14 304) increase in the levy amount payable for 2017-18 ($256 308) compared to the levy amount payable for 2016-17 ($242 004). This increase to the overall levy amount is mainly due to the inclusion of activities and costs under the 2017 CRIS that were not previously cost recovered and increases in the costs of implementing electronic monitoring in the fishery.

There is a two tiered system for the payment of levies in the WTBF. Tier 1 represents the fixed costs of managing the fishery and the research component. These costs are divided equally between each boat SFR. Tier 2 represents the costs which are variable depending on the level of fishing effort, such as compliance data collection, logbooks and observers. The different options of dividing the Tier 2 costs among the quota SFRs has been discussed with industry members, however no agreement could be reached. Therefore, without industry consensus, it was considered the most equitable option was to divide the costs equally between each quota SFR.

 

Part 3 - Collection of levy

 

Section 24 - Collection and payment of levy

 

This section provides that Part 3 of the Regulations provides for when the levy is due and payable and the payment of levy by instalments.

Section 25 - When levy is due and payable etc.

 

This section provides that the levy for 2017-18 will be payable in approximately three equal instalments on the dates determined in the instrument.


 

 

ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Fishing Levy Regulations 2017

 

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the

Human Rights (Parliamentary Scrutiny) Act 2011.

 

Overview of the Legislative Instrument

The instrument sets the amounts of levy that are payable for Commonwealth fishing concessions and in the timeframes for when those amounts of levy are due and payable, for the 2017-18 financial year.

 

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

 

 

 

 

 

Senator the Hon. Anne Ruston

Assistant Minister for Agriculture and Water Resources

 

 

 

 

 

 

 

 


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