(1)

If:

(a) a person fails to comply with this Act; and
(b) because of that failure a ship is detained or inspected; and
(c) the detention or inspection is reasonable in the circumstances; and
(d) the Commonwealth incurs costs in connection with the detention or inspection;

the person is liable to pay compensation of a reasonable amount to the Commonwealth in respect of the detention or inspection.

(2)

If the Commonwealth and the person do not agree on the amount of the compensation, the Commonwealth may take proceedings in the Federal Court for the recovery from the person of such reasonable amount of compensation as the Court determines.

(3)

If:

(a) a security regulated ship (the non-complying ship ) fails to comply with this Act; and
(b) because of that failure, the non-complying ship or another ship is detained or inspected; and
(c) the detention or inspection is reasonable in the circumstances; and
(d) the Commonwealth incurs costs in connection with the detention or inspection;

the ship operator for the non-complying ship is liable to pay compensation of a reasonable amount to the Commonwealth in respect of the detention or inspection.

(4)

If the Commonwealth and the ship operator do not agree on the amount of the compensation, the Commonwealth may take proceedings in the Federal Court for the recovery from the ship operator of such reasonable amount of compensation as the Court determines.