Financial estimates for AMSA’s regulatory charging activity outputs for current (2020-21), budget (2021-22), and three forward year estimates, including explanations to material variances, is summarised in Table 8, with cumulative results in Table 9.

Table 8: Financial estimates for regulatory charging activities

Estimate

Budget

Forward Year Estimates

2020-21

($’000)

2021-22

($’000)

2022-23

($’000)

2023-24

($’000)

2024-25

($’000)

Navigational infrastructure (Marine Navigation Levy)

  Expenses (X)

34,793

33,526

34,132

34,497

34,891

  Revenue (Y)*

37,102

36,226

36,625

37,000

37,375

  Balance (Y - X)

2,309

2,700

2,493

2,503

2,484

Explain material variances:

Increase in expenditure from 2021-22 largely from depreciation as capital expenditure replacements program are implemented.

Environmental marine protection (Protection of the Sea Levy)

Expenses (X)

27,223

26,225

26,999

26,985

27,293

Revenue (Y)*

36,384

36,379

36,725

37,100

37,475

Balance (Y - X)

9,161

10,154

10,026

10,115

10,182

Explain material variances:

Expecting a return to normality for regulatory activities from 2021-22 (e.g. National Plan training exercises recommencing as COVID-19 restrictions ease). These estimated surpluses will replenish the pollution response reserve from clean-up operations for the MV Efficiency incident.

Seafarer ship safety under Navigation Act 2012 and other Acts (Regulatory Functions Levy)

Expenses (X)

44,926

52,112

53,057

53,623

54,236

Revenue (Y)

54,604

54,595

55,150

55,700

56,250

Balance (Y - X)

9,678

2,483

2,093

2,077

2,014

Explain material variances:

From 2021-22, redirection of cross-functional resources away from domestic sector and towards ship safety under Navigation Act as National System transitional workloads decrease, and service delivery is defined.

Marine services under Navigation Act 2012 and ship registration

Expenses (X)

10,334

9,684

9,859

9,964

10,078

Revenue (Y)

2,944

3,885

3,885

3,885

3,885

Balance (Y - X)

(7,390)

(5,799)

(5,974)

(6,079)

(6,193)

Explain material variances:

During the 2021-22 Budget development, a review of activities was undertaken with tasks identified as regulatory functions allocated to seafarer and ship safety.

Marine services for National System

Expenses (X)

7,786

8,839

8,999

9,095

9,199

Revenue (Y)

3,233

3,805

3,805

3,805

3,805

Balance (Y - X)

(4,553)

(5,034)

(5,194)

(5,290)

(5,394)

Explain material variances:

Continued under-recovery in domestic commercial vessel fee-based activities. Revenue in 2021-22 expected to increase to pre COVID-19 levels, corresponding with increased effort (costs).

* Revenue includes insurance recoveries for aids to navigation assets and insurance and legal settlements for environmental emergency pollution response.

Table 9: Financial estimates for regulatory charging activities

 

 

Estimate

Budget

Forward Year Estimates

2020-21

($’000)

2021-22

($’000)

2022-23

($’000)

2023-24

($’000)

2024-25

($’000)

Expenses (X)

125,062

130,386

132,746

134,164

135,697

Revenue (Y)

134,267

134,890

136,190

137,490

138,790

Balance (Y - X)

9,205

4,504

3,444

3,326

3,093

Cumulative balance

9,205

13,709

17,153

20,479

23,572

As noted, AMSA’s financial estimates provided here do not include the activity output for the National System regulatory-based seafarer and ship safety. Given the upcoming government review of this function, it is not possible to comment on forward years with any degree or level of accuracy, nor without legislative funding provisions. To do otherwise would be confusing and counterproductive to users of this CRIS.