EXPLANATORY STATEMENT

Select Legislative Instrument 2008 No. 248

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

Fishing Levy Act 1991

Fisheries Management Act 1991

Fishing Levy Regulations 2008 (No. 2)

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 (No. 2) (the Regulations) repeal and replace the Fishing Levy Regulations 2008 and relevant amending regulations and set the amounts of levy payable on fishing concessions that relate to the 2008-09 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

AFMA’s Cost Recovery Impact Statement (CRIS) describes what costs are taxpayer funded 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 4B 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 include 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 MAC’s established by AFMA for the fishery or 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 Commission.

The budgets for each fishery are developed from December to April each year and MACs/consultative bodies are involved throughout the process. Each fishery budget is then agreed by the AFMA Commission. When AFMA asks consultative bodies 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:

·        ScallopMAC considered the draft 2008-09 budget and recommended that the budget be supported. ScallopMAC further recommended that despite the Australian Government’s agreement to fund a survey of the scallop stocks, funding originally budgeted for the survey in the levy base should be retained as contingency funds.

·        Coral Sea Fishery Stakeholder Committee at their March 2008 meeting considered the draft 2008-09 budget for the fishery and requested a reduction in the staff time allocation, travel expenditure and observer coverage. These requests were taken into account in the final budget as agreed by the AFMA Board.

·        Eastern Tuna MAC noted a saving of approximately $500,000 on last year’s levy base in the draft budget for 2008-09 and that while most areas have been reduced, licensing and logbooks/data management remained contentious issues. The MAC noted the change to Observer costing that industry had endorsed by including $100 per sea day during the SBT season. The increased cost for research was noted along with the cost for each project. Eastern Tuna MAC endorsed the budget and levy base for 2008-09 as presented.

·        South MAC were informed of 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 2008-09 budget and commended AFMA for reducing the pre-subsidy budget compared to the previous year although industry members of the MAC expressed concern about the on-going high costs of NPF management. NORMAC agreed that the NPF budget is not sustainable at its current levels, particularly given the reduced number of levy payers as a result of the structural adjustment program.

·        WEST MAC considered the draft North West Slope Fishery and the Western Deepwater Trawl Fishery budgets but made no formal comment.

·        SPFMAC considered and endorsed the draft 2008-09 SPF budget noting that most budget items had decreased resulting in a reduction of the total budget by 3 percent from the 2007-08 budget. Industry members noted their ongoing concern with the observer budget, indicating that the costs were excessive. It was noted that in the long-term these costs may be reduced if recommendations of AFMA’s CRWG are implemented. Specifically, the potential for Industry-based observer programs audited by AFMA was noted.

·        The Gillnet, Hook and Trap MAC considered the budget and levy base for the GHATF for 2008-09 and acknowledged the large savings by the management area. They did query the compliance as well as the exclusion of the South East Fisherman’s Association budget. These issues were resolved and GHATMAC agreed to the budget.

·        SBTMAC considered and endorsed the draft 2008-09 Southern Bluefin Tuna budget subject to the removal of capital expenditure assigned for the purchase of stereo video monitoring equipment and motion compensating scales and noted that while savings have been achieved in the draft budget consistent with AFMA’s cost reduction targets, SBT staffing levels in the management area are significantly lower than previous years. Industry expressed concern that any further reductions may jeopardise the performance of the SBT management area.

·        Squid MAC considered the draft budget for the Southern Squid Jig Fishery and accepted it without change.

·        The South East Trawl MAC considered the draft fishery budget and had generally thought the approach reasonable. There were some savings foreshadowed in salaries and the Cost Recovery Working Group recommendations proposed further savings. There were also concerns raised over research cost expenses and the need to focus research projects. AFMA is addressing this matter through improved research and development setting.

·        The GABMAC accepted the 2008-09 budget with consideration given to any savings from Co-Management initiatives to be incorporated into the 2009-10 budget.

In addition to the above consultation, AFMA engages with the Commonwealth Fisheries Association (CFA) on a range of fisheries issues. The CFA was involved with AFMA’s CRWG which reviewed AFMA’s operating costs and is supporting changes to business processes that will achieve savings. The savings identified are starting to be realised incrementally beginning from the 2008-2009.

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 9876). 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. In response 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 numbers of 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 was allocated in 2007-08, and the remaining $3 million has been 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 CRIS. In determining the budget AFMA seeks advice from the relevant management advisory committee or consultative body;
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 programs 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) provided AFMA with the number of concessions in each fishery that were removed from Commonwealth fisheries following the submission of tenders in round 1 & 2 of the Business Exit Scheme. The $3 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 43% of the shortfall.
2. After this offset has been applied, the remainder of the $3 million has been allocated on a proportional basis across all fisheries other than Torres Strait to which the Business Exit Scheme did not apply. 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.

The total amount to be recovered from the fishing industry prior to the levy subsidy has decreased by $2.4m or 18% from the 2007-08 year, although the cost reductions are not consistent across all fisheries. However, the levy subsidy available in 2008-09 has also reduced from $5m in 2007-08 to $3m in 2008-09 so that the costs to be recovered after application of the subsidy have reduced by $0.4m overall. 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 (No. 2).

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 2008.

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.

Subregulation 5, 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 2009 as $0.2333. The levy includes a research component of $0.0005 per SFR.

Table 1: Comparison of the BSCZSF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$237,853	$84,860	$152,993	$144,522	$38,604	$105,918	-39%	-31%

There has been a 31% decrease in the levy for 2008-09. These decreases have been attributed to cost savings in the 2008-09 levy base and a $79,186 surplus carried over from the 2007-08 financial year. The fishery is currently subject to a zero total allowable catch. The decrease in activity in the fishery has resulted in a decrease in the research, licensing and travel costs for the fishery. Consequently there has been in a reduction in the levy base of $93,331.

 

To calculate the levy payable for each commercial scallop quota SFR the research component of $240 is added to the total management levy to be collected ($105,918) and then divided by the number of commercial scallop quota SFRs in the fishery (455,000).

 

Regulation 8 provides that levy is payable on 29 January 2009 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 (CSF) fishing permit in force on or before 30 June 2009. 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 observer, compliance, logbook and data processing costs incurred in relation to each sector of the fishery. The Tier 1 levy is $2,282.39 for each permit including an FRDC component of $151.28. The Tier 2 amounts per permit are:

• for the aquarium fish sector - $1,196.72;

• for the lobster and/or trochus sectors - $1,744.82;

• for the line sector - $7,800.05;

• for the trawl sector - $10,206.18; and

• for the sea cucumber sector - $7,726.85.

Table 2: Comparison of the CSF levy base

2007-08			2008-09			% 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
$178,260	$55,841	$122,419	$185,818	$40,629	$145,189	4%	19%

There has been a 19% increase in the total levy to be collected in 2008-09. The 2008-09 pre subsidy levy base of $185,818 represents 4% increase over the 2007-08 figure. This increase can be largely attributed to a rise in logbook and data management costs.

The amount of levy subsidy has reduced by $15,212 in 2008-09. The increase in logbook and data management costs along with the reduction in levy subsidy has led to the increase in the total amount payable for the fishery.

Regulation 11 provides that levy is payable on 31 March 2009 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 2009.

The ETBF is divided into the sectors (referred to in regulation 13) based on area and method of fishing. Management is via a management plan and conditions placed on fishing permits. 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.

To calculate the levy payable for each ETBF fishing permit the research component ($77,723) is added to the total management levy to be collected ($1,026,043) and then divided by the number of commercial ETBF fishing permits in the fishery which have been granted.

Table 13 of the Regulations specifies the following levy amounts:

Sector Total Levy

Amount ($)

ML Sector 1,805.78

PL Sector 1,721.21

PLL (Sub-area 1) Sector 10,444.75

PLL (Sub-area 2) Sector 9,410.06

PLL (Sub –area 4) Sector 5,447.21

PLL (Sub-area 6 Sector 5,226.00

PLL (Sub-area 7) Sector 5,226.00

PLL (Sub-area 8) Sector 5,226.00

PLL (Sub-area 9) Sector 3,058.79

PLL (Sub-area 10) Sector 1,385.08

Area Z 1,385.08

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$2,376,863	$1,233,501	$1,143,362	$1,636,705	$610,662	$1,026,043	-31%	-10%

There has been a decrease in the ETBF levy for 2008-09. The decreases are due to an under expenditure in 2007-08 being credited to the current financial year and a reduction in the 2008-09 budget compared to 2007-08. The reduction can be attributed to direct management costs, observers, logbooks and compliance. Part of the reduction to the levy base is because some observer coverage for Southern Bluefin Tuna is now directly invoiced to individuals rather than being included in the levy base, the remainder is due to reduced fishing effort requiring fewer observer days.

Regulation 14 provides that levy is 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 2009 or 28 days after the invoice date for the instalment. The second instalment, if any, is payable by the later of 10 April 2009 or 28 days after the invoice date for the instalment.

Under sub regulation 14(5), if a fishing permit is in force on 10 April 2009 but not on 29 January 2009, 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 quota SFR in force on the commencement of the Regulations as $7.38. The levy includes a research component of $0.89 per SFR.

Table 4: Comparison of the HIMI levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$722,663	$204,230	$518,433	$498,930	$109,090	$389,840	-31%	-25%

There has been a 25% decrease in the levy base for 2008-09, following application of the levy subsidy. The decrease is primarily a result of the timings of payments for the industry research survey.

To calculate the levy payable for each SFR the research component ($53,205) is added to the total management levy to be collected ($389,840) and then divided by the number of commercial SFRs in the fishery (60,000).

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 16 March 2009 or 28 days after the invoice date for the instalment, whichever is later. The second instalment, if any, is payable by 15 June 2009 or 28 days after the invoice date for the instalment, whichever is later.

 

Part 6 Informally Managed Fishing Permits

See part 10 Small Pelagic Fishery

 

Part 7 Macquarie Island Toothfish Fishery

Regulation 21 defines a term used in the Part.

Regulation 22 sets the levy payable for a Macquarie Island Toothfish Fishery (MITF) quota SFR in force on the commencement of the Regulations as $6.58. The levy includes a research component of $0.29 per SFR.

Table 5: Comparison of the MITF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$326,878	$92,378	$234,500	$161,209	$35,248	$125,961	-51%	-46%

There has been a 46% decrease in the levy base for 2008-09, following application of the levy subsidy. The difference is primarily due to the inclusion in the 2007-08 levy base of a one-off payment of $193,112, which covered the deferred costs for the development of the Management Plan for the fishery. This approach was adopted so the SFR holders in the fishery paid for the cost of the Plan development proportional to the number of SFRs held rather than operators who only had interim access via permits bearing these costs.

The 2007-08 pre-subsidy levy base, without the total deferred costs of $193,112, would have been $133,766. The pre-subsidy levy base for 2008-09 is $161,209, which includes $32,051 from 2007-08. The increased costs in 2007-08 were primarily associated with the trialling of longline fishing in the MITF.

To calculate the levy payable for each SFR the research component ($5,570) is added to the total management levy to be collected ($125,961) and then divided by the number of commercial SFRs in the fishery (20,000).

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 16 February 2009 or 28 days after the invoice date for the instalment, whichever is later. The second instalment, if any, is payable by 15 April 2009 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) gear SFR as $32.49. The levy includes a research component of $5.04 per gear SFR.

Table 6: Comparison of the NPF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$1,840,875	$841,987	$998,888	$1,468,015	$493,995	$974,020	-20%	-2%

The decrease in the levy base is mainly due to a surplus of $698,072 from 2007-08. This amount was primarily due to over-collection in previous financial years and unspent salary and lower than predicted logbook, observers and compliance costs in 2007-08. In addition, the levy base also decreased in 2008-09 due to a reduction in 2008-09 travel, fishery management research, logbooks, data management, licensing and compliance costs as a result of the reduced number of operators in the Fishery.

The management levies collectable prior to the levy subsidy is $1,468,015. The levy subsidy for 2008-09 is $493,995 (a reduction of $347,992). Therefore, the levy base is $974,020 representing a decrease of 3%. The amount to be recovered has only slightly decreased because of a significant reduction in the levy subsidy.

 

To calculate the levy payable for each NPF Gear SFR the research component ($178,843) is added to the total management levy to be collected ($974,020) and then divided by the number of commercial Fishery Gear SFRs in the fishery (35,479).

 

Regulation 26 provides that levy is payable on 29 January 2009 or 28 days after the invoice date for the levy, which ever is the 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) permit as $13,588.57. The levy includes a research component of $299.71 per permit.

Table 7: Comparison of the NWSF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$85,112	$24,053	$61,059	$119,053	$26,031	$93,022	40%	52%

 

There has been a 52% increase in the levy base for 2008-09. The increase in the levy base for the NWSF is primarily due to an increase in salary costs as a result of the requirement to develop future management arrangements for the NWSF. AFMA is discussing with stakeholders the possibility of amalgamating management of the NWSF with another fishery in an effort to reduce costs.

 

The proportion of the levy subsidy has increased slightly (up from 0.73% to 1.17%) as a result of the budget increase in 2008-09 budget.

 

To calculate the levy payable for each NWSF permit the research component ($2,098) is added to the total management levy to be collected ($93,022) and then divided by the number of commercial NWSF permits in the fishery (7).

Regulation 29 provides that levy is payable on 29 January 2009 or 28 days after the invoice date for the levy, which ever is the later.

 

 

Part 10 Small Pelagic Fishery

Regulations 18 and 30 define terms used in these Parts.

Regulation 19 sets the levy payable for an Informally Managed Fishery (IMF) permit in force on or after the date these Regulations come into effect and on or before 30 June 2009 as $5,342.90. The levy includes a research component of $70 per permit.

Regulation 31 sets the levy payable for a Small Pelagic Fishery (SPF) fishing permit in force on or after the date these Regulations come into effect and on or before 30 June 2009 as $5,342.90. The levy includes a research component of $70 per permit.

In July 2006 AFMA decided to manage activities authorised by IMF Permits under the SPF Management Plan. As a result management of the SPF has been expanded to take into account IMF permits. Work has been undertaken to revise the draft SPF Management Plan, review the allocation provisions for the fishery and to develop a harvest strategy that incorporates IMF activities.

Table 8: Comparison of the SPF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$370,645	$107,246	$263,399	$529,363	$118,077	$411,286	43%	56%

The levy base for the SPF has increased 56% following application of the levy subsidy. This increase is due to an overall increase in the industry component of the 2008-09 budget ($5,877) and an over expenditure in 2007-08 ($146,094). The over expenditure incurred in 2007-08 was due to: i) unbudgeted salary costs required for progressing the management plan, convening the Independent Allocation Advisory Panel and developing a harvest strategy; ii) unbudgeted research costs for projects into dolphin & seal interactions and management zones; and iii) additional overhead cost accrued as a result of higher salary costs.

 

As a result of the combined management of the SPF and IMF the levy charged for an IMF permit have increased by 404% from $1,060.00 in 2007-08 to $5,342.90 in 2008-09.

 

To calculate the levy payable for each Informally Managed Fishery Permit and Small Pelagic Fishery Permit the total management levy owing for the SPF ($411,286 in addition to a research component of $5,460) is divided by the number of SPF and IMF Permits (78).

Regulations 20 and 32 provide that levy is payable on 31 March 2009 or 28 days after the invoice date for the levy, which ever is the later.

Part 11 Southern and Eastern Scalefish and Shark Fishery

Regulation 33 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 Deepwater Trawl Fishery (ECDT); Great Australian Bight Trawl Fishery (GABTF); Gillnet Hook and Trap Fishery (GHTF); South East Trawl Fishery (SETF); and 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 different sectors are managed under a system of Statutory Fishing Rights (SFRs) and permits.

At industry’s request the total budget for the SESSF fishery continues to be set 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 (No. ) detail levy information by sector permits, boat SFRs and quota SFRs, this section discusses the levy amounts to be collected in terms of individual fishery budgets with a view to explaining proposed increases or decreases in levy.

Levy amounts for quota species are calculated based on the gross value of production (GVP) 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 for that species, with the proportion being that species’ GVP contribution to the total GVP for all quota species (see Table 12 and Table 13).

Subregulations 40(3) and 51(3) provide that all SESSF levies mentioned in subregulations 34(2), 35(2), 36(2), 37(2), 38(2), 39(2), 44(3), 45(2), 46(2), 47(2), 48(2), 49(2) and 50(2) are due and payable either in full or in two equal instalments. Subregulations 40(5) and 51(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 40(5) and 51(5) also provide that the second instalment, if any, is payable by 16 April 2009 or 28 days after the invoice date for the instalment, whichever is later.

 

·        East Coast Deepwater Trawl Sector

Subregulation 34 (1) defines a term used in the Part.

Subregulation 34(2) sets the levy payable for a SESSF East Coast Deepwater Trawl (ECDT) fishing permit in force on or after 1 January 2009 and on or before 30 April 2009 as $2,672.50. The levy includes a research component of $29.50 per permit.

Table 9: Comparison of the ECDT levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$49,704	$25,367	$24,337	$41,785	$15,355	$26,430	-16%	9%

While the levy base has decreased in 2008-09, the subsidised levy and therefore the rate per fishing permit has increased by 9% because of the reduction in the amount of levy subsidy.

There is a 16% reduction in the pre subsidy levy base for 2008-09. This is due to a number of savings across the budget including staff costs, overheads and licensing. The levy base also includes a debit of $4,850 from 2007-08 due to uncollected levies.

 

To calculate the levy payable for each ECDT permit the research component ($295) is added to the total management levy to be collected ($26,430) and then divided by the number of commercial ECDT permits in the fishery (10).

·        Great Australian Bight Trawl Sector (GABT)

Subregulations 36(1) and 41(1) define terms used in the Part.

Subregulation 45(2) sets the levy payable for a GABT boat SFR in force on or after 1 January 2009 as $27,424.97. The levy includes a research component of $38,565.00 for the GABT. Levy amounts for quota species are listed in tables 12 and 13.

Table 10: Comparison of the GABT levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$630,527	$178,192	$452,335	$364,487	$79,695	$284,792	-42%	-37%

There has been a 37% decrease in the total levy for 2008-09. The decreases are due to cost savings within AFMA and from the co-management initiative.

Paragraph 40(1)(c) sets the levy payable for a SESSF GABT quota species fishing permit in force on or after 1 January 2009 and on or before 30 April 2009. Paragraph 45(2) sets the levy payable for a SESSF GABT boat SFR in force on 1 January 2009. 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 Sector (GHT)

 

Subregulations 35(1), 37(1), 39(1), 40(1), 41(1), 42, 43(1), 44(1), 46(1), 47(1), 48(1), 50(1) and 51(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 46(2));

·        SESSF Scalefish hook boat SFR (subregulation 47(2)); and

·        SESSF Shark hook boat SFR (subregulation 48(2))

 

where the relevant SFR is in force on 1 January 2009; and

 

·        SESSF SEQ species fishing permit (subregulation 35(2));

·        SESSF GHT coastal waters fishing permit (subregulation 37(2)); and

·        SESSF GHT trap fishing permit (subregulation 39(2));

Levy payable for a: Gillnet boat SFR $85.12; Scalefish hook boat SFR $291.24; Shark hook boat $138.39; GHT trap fishing permit $352.11 and GHT fishing permit $74.63. The levy includes a GHT research component of $60,725.00. Table 12 and 13 shows levy amounts for quota species.

 

Table 11: Comparison of the GHT levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$1,970,979	$681,744	$1,289,235	$1,198,828	$311,700	$887,128	-39%	-31%

There has been a 31% decrease in the levy base after subsidy for 2008-09. The decrease is a result of general cost savings across AFMA including management staff, observers, licensing and compliance. Further to this the 2007-08 levy included the cost of a fishery independent survey as required by the Ministerial Direction.

 

Table 12 - Levy on quota species attached to permits

Species	Levy Amount (for each quota unit on Fishing Permit 2008/09)	FRDC Levy Amount (for each quota unit on Fishing Permit 2008/09)
School shark	$0.2671	$0.0126
Gummy shark	$0.2794	$0.0191
Sawshark	$0.1640	$0.0073
Elephant fish family	$0.0969	$0.0050

 

Table 13 - Levy on quota SFR species

	Levy amount (per quota SFR)	FRDC levy amount (per quota SFR)
Species	Total 2008-09	Total 2008-09
Bight redfish	$0.0131	$0.0131
Blue eye trevalla	$0.1445	$0.0145
Blue grenadier	$0.0980	$0.0063
Blue warehou	$0.0294	$0.0008
Deepwater flathead	$0.0078	$0.0078
Flathead	$0.1578	$0.0101
Gemfish (eastern sector)	$0.0607	$0.0038
Gemfish (western sector)	$0.0628	$0.0040
Jackass morwong	$0.0515	$0.0032
John dory	$0.1394	$0.0089
Mirror dory	$0.0757	$0.0048
Ocean perch	$0.0777	$0.0049
Orange roughy (Albany and Esperance)	$0.0098	$0.0098
Orange roughy (Cascade Plateau zone)	$0.0391	$0.0025
Orange roughy (eastern zone)	$0.0078	$0.0005
Orange roughy (southern zone)	$0.0003	$0.0000
Orange roughy (western zone)	$0.0102	$0.0007
Pink ling	$0.2410	$0.0209
Redfish	$0.0638	$0.0041
Royal red prawn	$0.0348	$0.0022
School whiting	$0.0202	$0.0013
Silver trevally	$0.0271	$0.0015
Spotted warehou	$0.1704	$0.0107

 

·        Victorian Coastal Waters Sector

Subregulation 38(1) defines a term used in this part.

Subregulation 38(2) sets the levy payable for a SESSF Victorian Coastal Waters (VCW) fishing permit in force on or after 1 January 2009 and on or before 30 April 2009 as $478.00. The levy includes a research component of $65.59.

Table 14: Comparison of the VCW levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$36,970	$16,826	$20,144	$13,570	$4,497	$9,073	-63.3%	-55.0%

The recoverable levy amount to be collected for 2008-09 has decreased by 55%. Figures for 2008-09 budget have responded to the development and implementation of new management arrangements in the VCW sector with slight increases in staff costs and travel and meeting demands.

While the levy base has decreased 63.3% in 2008-09, the subsidised levy and therefore the rate per fishing permit has decreased because of the significant reduction in the amount of levy subsidy.

 

To calculate the levy payable for each VCW permit the research component ($1,443) is added to the total management levy to be collected ($9,073) and then divided by the number of commercial VCW permits in the sector (22).

 

·        South East Trawl Sector (SET)

Subregulation 35(1), 40(1)(b), 41(1), 43(1), 44(1), 49(1), 50(1) and 51(1) defines a term used in the Part.

Subregulation 49(2) sets the levy payable for a SESSF trawl boat SFR in force on 1 January 2009 as $4,576.50. The levy includes the SET research component of $120,470.00. Levy amounts for quota species are the same as those listed in the table in the GHT section above.

Table 15: Comparison of the SET levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$2,727,481	$905,291	$1,822,190	$2,629,523	$659,670	$1,969,853	-4%	8%

The levy base decreased in 2008-09 in part due to a number of savings across the budget including staff costs, travel and meetings. The 2008-09 results for overheads, compliance and licensing indicates the reduction incurred in these indirect costs.

While the levy base for the SET has decreased by 3.6% the recoverable levy (post subsidy) has increased by 8% because of the reduction in the levy subsidy applied to the fishery.

 

To calculate the levy payable for each SESSF trawl boat SFR the research component ($120,470) is added to the total management levy to be collected ($1,969,853) and then divided by the number of commercial SESSF trawl boat SFRs in the fishery.

 

Part 12 Southern Bluefin Tuna Fishery

Regulation 52 defines a term used in the Part.

Regulation 53 sets the levy payable for a Southern Bluefin Tuna Fishery (SBT) SFR in force on or after 15 January 2009 as $0.2034. The levy includes a research component of $0.0193.

Table 16: Comparison of the SBT levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$1,159,373	$327,648	$831,725	$1,254,817	$274,364	$980,453	8%	18%

The levy base for 2008-09 has increased 18% after the levy subsidy. Under the 2008-09 budget costs have been reduced for most items however these reductions are offset by: i) increased observer costs; iii) inclusion of previously unbudgeted research costs for the aerial survey; iii) a reduction in the levy subsidy available to the fishery ($53,284); iv) a carry over of costs incurred in 2007-08 ($70,761).

The 2007-08 budget was overspent due to unbudgeted costs for the ‘2007-08 Aerial Survey’ research project (AFMA contributed $214,000) and increased observer activity required to achieve the observer coverage targets for the fishery.

To calculate the levy payable for each SBT SFR the research component ($102,558) is added to the total management levy to be collected ($980,453) and then divided by the number of commercial SBT SFRs in the fishery (5,324,422).

Regulation 54 provides that levy is payable on 11 February 2009, or within 28 days after the invoice date for the instalment, whichever is later.

 

Part 13 Southern Squid Jig Fishery

Regulation 55 defines a term used in the Part.

Regulation 56 sets the levy for each gear SFR in the Southern Squid Jig Fishery (SSJF) in force on 1 January 2009 as $17.79. The levy includes a research component of $0.31 per SFR.

Table 17: Comparison of the SSJF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$165,394	$63,692	$101,702	$141,954	$40,545	$101,409	-14%	0%

There has been a 14% decrease in the levy for 2008-09. The decrease in the levy base is due to decreases in costs across almost all budget items. The levy amount payable after the subsidy has not changed due to a reduction in the levy subsidy of $23,147 for 2008-09.

 

To calculate the levy payable for each gear SFR the research component ($1,800) is added to the total management levy to be collected ($101,409) and then divided by the number of commercial gear SFRs in the fishery (5,800).

Regulation 57 provides that levy for the fishery is payable on the later of 27 February 2009 or 28 days after the invoice date for the levy.

 

Part 14 South Tasman Rise Fishery

Regulation 58 defines a term used in the Part.

Regulation 59 sets the levy payable for a South Tasman Rise (STR) Fishery fishing permit in force on or after 1 January 2009 and on or before 30 June 2009 as $3,301.43. The levy includes a research component of $56.86 per permit.

Table 18: Comparison of the STR levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$5,677	$1,604	$4,073	$29,067	$6,356	$22,712	412%	458%

There has been a 458% increase in the levy for 2008-09. The increases are to allow for anticipated expenses to be budgeted against the fishery for salary costs and associated overheads should the fishery be reopened and permits be reissued. The levy also includes a debit of $5,575 from 2007-08 due to uncollected levies. As the fishery is currently closed, a nominal number of seven permits have been used in the calculations.

 

To calculate the levy payable for each fishery permit the research component ($398) is added to the total management levy to be collected ($22,712) and then divided by the number of commercial fishery permits in the fishery (7).

 

Regulation 60 provides that levy is payable on or after 31 March 2009 or 28 days after the invoice date for the levy, whichever is later.

Part 15 Western Deep Water Trawl Fishery

Regulation 61 defines a term used in the Part.

Regulation 62 sets the levy payable for a Western Deep Water Trawl fishery (WDWTF) fishing permit in force on or after 1 January 2009 and on or before 30 June 2009 as $9,547.10 per permit. The levy includes a research component of $30.45 per permit.

Table 19: Comparison of the WDWTF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$74,221	$20,975	$53,246	$133,977	$29,294	$104,683	81%	97%

There has been a 97% increase in the levy for 2008-09. The increases are because there was a refund of $30,000 from 2006-07 compared to a debit of $5,554 in 2007-08 due to uncollected levies. In addition costs were increased to cover the cost of developing future management plans, increased compliance and overhead costs.

 

To calculate the levy payable for each fishery permit the research component ($335) is added to the total management levy to be collected ($104,683) and then divided by the number of commercial Fishery permits in the fishery (11).

Regulation 63 provides that levy is payable on 29 January 2009 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 making a 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 bear the costs for those operators who have not maintained their permits, but who will receive an allocation of SFRs.

Regulation 64 defines the terms used in the Part.

Regulation 65 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 for these years.

Table 20: Comparison of the WTBF levy base

2007-08			2008-09			% change
Levy base	Levy subsidy applied	Amount payable after subsidy	Levy base	Levy subsidy applied	Amount payable 2008-09 after subsidy	Levy base	Amount payable after subsidy
$398,132	$134,565	$263,568	$416,683	$106,188	$310,495	5%	18%

There has been an 18% increase in the levy for 2008-09. There was an under collection of levies in 2007-08 because a number of permits that were expected to be issued were not. These permit holders are eligible for the grant of SFRs which will be made available in 2008-09. Levy that was expected to be collected from the permit holders in previous years will be collected upon the grant of SFRs. The levy base in 2008-09 is therefore higher than previous years due to the need to collect these back levies. The actual budget for the fishery has decreased in 2008-09 in all areas because fishing effort in the WTBF has declined to very low levels, reducing the costs of services such as logbooks, licensing and observers.

The levy amount is:

·        $2,875.00 for a permit authorising the pelagic longline fishing method;

·        $2,277.00 for a permit authorising the use of minor line fishing methods; or

·        $1,618.00 for a permit authorising the purse seine fishing method;

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 66 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 67 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 68 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 69 sets the levy rates for those eligible persons who have maintained their WTBF fishing permit in 2008-09, 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:

·        $2,875.00, for a leviable WTBF boat SFR granted to an eligible person who held a pelagic longline fishing permit during the 2008-09 financial year but did not pay levy under regulation 65;

·        $2,277.00, for a leviable WTBF boat SFR granted to an eligible person who held a fishing permit which authorised just minor line fishing during the 2008-09 financial year but did not pay levy under regulation 65; or

·        $1,618, for a leviable WTBF boat SFR granted to an eligible person who held a purse seine fishing permit during the 2008-09 financial year but did not pay levy under regulation 65.

Regulation 70 sets the levy rates for those eligible persons who have maintained their WTBF fishing permits in one of, but not all three of, 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 65 plus an amount equal to that paid by other operators in 2006-07 and 2007-08. The levy amount is:

·        $7,201.00, for a leviable WTBF boat SFR granted to an eligible person who held a pelagic longline fishing permit during two of, but not all three of, the 2005-06,
2006-07 or 2007-08 financial years;

·        $5,784.00, for a leviable WTBF boat SFR granted to an eligible person who held a fishing permit which authorised just minor line fishing during two of, but not all three of, the 2005-06, 2006-07 and 2007-08 financial years; or

·        $4,205.00, for a leviable WTBF boat SFR granted to an eligible person who held a purse seine fishing permit during two of, but not all three of, the 2005-06, 2006-07 or 2007-08 financial years.

Regulation 71 sets the levy rates for those eligible persons who have maintained their WTBF fishing permits in two of, but not all three of, 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 65 plus an amount equal to that paid by other operators in 2006-07 and 2007-08. The levy amount is:

·        $5,201.00, for a leviable WTBF boat SFR granted to an eligible person who held a pelagic longline fishing permit during one of, but not all three of, the 2005-06,
2006-07 or 2007-08 financial years;

·        $4,125.00, 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 all three of, the 2005-06, 2006-07 and 2007-08 financial years; or

·        $2,932.00, for a leviable WTBF boat SFR granted to an eligible person who held a purse seine fishing permit during one of, but not all three of, the 2005-06, 2006-07 or 2007-08 financial years.

Regulation 72 sets the levy rates for those eligible persons who have not maintained their WTBF fishing permit in 2008-09, 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 65.

Regulation 73 sets the levy rates for those eligible persons who have not maintained their WTBF fishing permits in 2005-06, 2006-07, 2007-08 and 2008-09. The levy becomes payable on the grant of a boat SFR. The amount to be collected is the appropriate amount specified in regulation 65 plus the appropriate amount that was paid by other operators in 2005-06, 2006-07 and 2008-09. The levy amount is:

·        $11,580.00, for a leviable WTBF boat SFR granted to an eligible person who held a pelagic longline fishing permit during the 2004-05 financial year but not in subsequent years;

·        $8,860.00, 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

·        $6,548.00, 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 74 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 75 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.