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Increased Penalties for Commonwealth Shipping Offences Nathan Cecil, Partner and Claire Morgan, Foreign Registered Solicitor Penalties for breaching Commonwealth shipping laws such as the Navigation Act 1912 and the Customs Act 1901 increased as of December 2012. Fines for breaches of Commonwealth shipping legislation are often expressed as a number of ‘penalty units’. The value of a penalty unit under Commonwealth laws was previously A$110 per unit. From 28 December 2012, the value of a penalty unit increased to A$170. As a result, fines for a breach of Commonwealth shipping laws have increased by more than 50%. For example, in our newsflash “The Cost of Delayed Customs Reporting” [click here] we reported that an operator of a ship can be fined up to 120 penalty units (then, up to A$13,200.00) per offence if a ship is found to have intentionally contravened requirements to report crew numbers prior to arrival in Australia. From 28 December 2012, the maximum fine has increased to A$20,400.00 per offence/crew member. Similarly, in our newsflash “Oil Pollution in Australia – Charterers Now Strictly Liable; Penalties Increased” [click here] we advised that a corporation could face oil pollution fines of up to A$11 million under the Maritime Legislation Amendment Act 2011. From 28 December 2012, the maximum fine applicable to an offending corporation has increased from A$11 million to A$17 million. The increased value of a penalty unit will be felt across the board and will expose companies to inflated levels of financial liabilities for breaches of Commonwealth shipping laws. Companies should make a conscious effort to comply with Commonwealth shipping legislation in order to avoid costly fines. At present, the fines imposed under State/Territory laws are not set to increase, but this may be reviewed by the State/Territory governments in the near future.
If you have any queries or require further information, please contact: Contact |
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Nathan Cecil |
Robert Wilson |
Claire Morgan |
Charles Street |
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Partner |
Partner |
Foreign Registered Solicitor |
Solicitor |
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T: +61 2 9230 9450 |
T: +61 2 9230 9475 |
T: +61 2 9230 9412 |
T: +61 2 9230 9444 |
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