3.1 Outputs and business processes of the regulatory charging activities
3.1.1 Activity outputs
As described in policy background (Section 1.2.1), AMSA’s role is to deliver on seafarer and ship safety, and environmental marine protection through regulation, and provide search and rescue capability. The broad outputs and primary activities for these roles are itemised in Table 2, which also notes whether the output is a regulatory charging activity.
Table 2: AMSA’s broad activity output listing
Activity output
|
Primary activities
|
Regulatory charging?
|
Search and rescue activities and functions
|
- Operating AMSA Response Centre, coordinating maritime and aviation search and rescue.
- Providing two ground stations and Mission Control Centre for the Cospas Sarsat distress beacon detection system.
- Maintaining maritime distress and safety communications services.
- Providing dedicated airborne search and rescue services.
|
No, funded by government budget appropriations
|
Navigational infrastructure
|
- Providing and maintaining a national network of marine aids to navigation (AtoN) and related navigational systems and measures.
- Intergovernmental and international engagement to shape and ensure appropriate maritime standards are in place (e.g. for Australia’s obligations under SOLAS convention and for the provision of AtoN through IALA).
|
Yes
|
Environmental marine protection
|
- Managing the National Plan, including crisis preparedness to combat environmental emergencies (pollution incidents).
- Regulating, monitoring, and coordinating maritime casualty management and emergency towage capability.
- Conducting pollution prevention public awareness and education campaigns.
|
Yes
|
Seafarer and ship safety under Navigation Act 2012 and other acts
|
- Monitoring compliance with operational standards for ships in Australian waters, under the Act, to ensure their seaworthiness, safety and pollution prevention.
- Participating in the development and implementation of national and international marine safety and environment protection standards.
- Providing public access to ship safety and environment protection standards and policies.
- Administering training standards for seafarers and coastal pilots.
- Conducting safety public awareness and education campaigns.
- Exercising occupational health and safety inspectorate functions.
|
Yes
|
Marine services under Navigation Act 2012 and ship registration under Shipping Registration Act 1981
|
- Administering competency of qualifications for seafarers and coastal pilots.
- Conducting inspections, surveys, and audits requested by ship owners or their agents.
- Administering Australia’s ship registration system.
|
Yes
|
Marine services under National System for Domestic Commercial Vessels
|
- Assessing applications and issuing approvals and certificates of operation, survey, and competency of near coastal seafarer qualifications.
- Administering, monitoring, and maintaining network of accredited marine surveyors.
- Assessing applications that request exemptions from the application of National Law, and equivalent means of competency.
|
Yes
|
Seafarer and ship safety under National System for Domestic Commercial Vessels
|
- Monitoring compliance with operational standards for the domestic commercial vessel fleet to ensure their seaworthiness.
- Participating in the development and implementation of domestic marine safety and environment protection standards.
- Providing public access to ship safety and environment protection standards, policies and regulations.
- Administering the training standards for domestic seafarers and pilots.
- Conducting safety public awareness and education campaigns.
|
No, funded by combination of government budget appropriations and jurisdiction contributions
|
Externally funded programs
|
- Externally funded programs sponsored by various government departments for provision of specific maritime related services, predominantly in relation to search and rescue capabilities.
|
No, funded by various government departments
|
Operational targets of these activity outputs are detailed in the Annual Performance Statements of AMSA’s Corporate Plan, which describes the reportable measurements in achieving AMSA’s policy outcomes. A summary is provided in non-financial performance (Section 7B).
3.1.2 Business processes
Levy-based activities
Levy-based regulatory charging activities relate to the provision of a total function (statutory regulations) as opposed to transactional business processes; the costs for delivering these activities are not on a transactional basis, rather driven by the support to achieve overall activity output outcomes and non-financial performance targets.
Fee-based activities
Driven by distinct business processes, fee-based regulatory charging activities support specific regulatory functions to which the fees relate. Generic business processes for AMSA’s fee-based activities include:
- receipt and review of an application, including initial engagement and ongoing consultation with the applicant
- undertaking technical assessment, with a decision made by a delegate, and
- processing and issuing a certificate, license or approval.
In practice, administrative business procedures for the receipt, review and issue are broadly similar across fee-based charging activities. However, time and effort (and associated costs) for technical assessments and decisions vary between the types of outputs and on the complexity or nature of the application.
3.2 Costs of the regulatory charging activities
AMSA applies an activity-based costing allocation methodology to determine costs for activity outputs and regulatory charging activities. This holistic approach incorporates the entirety of its cost base, in accordance with the Financial Management Information System (FMIS), and allocates these costs to activity outputs based on estimated time and effort, and drivers. An illustration of the methodology applied in AMSA’s costing model is depicted in Appendix 1.
Costs are classified as either direct or indirect (overhead). These are reviewed on an annual basis to determine operational requirements against expected demand and estimated revenue in order to ascertain efficiencies (or savings) that may be achieved.
The approach to set budgets and to estimate actual expenditure aligned with source funding appears efficient and effective. Nevertheless, AMSA is commencing a process to benchmark costing methods with other domestic and international government entities that provide similar regulatory activities to the non-government sector. This will take time to develop, but this is identified as an area for improvement.
3.2.1 Changes to costing model techniques
In 2018–19, and in response to the findings identified in Australian National Audit Office performance audit report, AMSA implemented improvements to its costing model techniques, including alignment of costs to individual outputs, developing more accurate cost drivers for corporate functional costs, refined direct costs, and allocated corporate overheads across all activities based on normalised revenue estimates.
Normalised revenue was used as the driver for corporate overhead allocations on the assumption this basis more accurately reflects the level of support provided by corporate support, governance and executive functions. This method is more accurate than allocation based on direct staffing levels, which inadvertently allocates a larger share of overheads to people-intensive outward facing activities, despite being more process driven and consuming less executive and governance overhead. This involved an analysis of trends in revenue estimates based on expected drivers, such as ship arrivals trends.
Two costing models were developed. To facilitate the collection of data for inputs into the first costing model, an analytical activity-based costing allocation approach was developed, with business line managers providing inputs for the allocation of time and effort for staff and supplier costs into sub-activities.
The second model only involved fee-based activities. A program was undertaken to capture timesheet information from specific business units over an eight-week period. Information gathered also included estimated time to complete each individual fee-based activity from business line managers. These data, combined with actual volumetric data, developed a fee-based bottom-up cost model, with an overhead rate applied.
Differences between models for fee-based activities were identified, with costs in the first model being higher. The excess was tested and determined to be levy-funded regulatory framework effort, with costs assigned as such.
As part of its continuous improvement strategy, AMSA is in the process of investigating and understanding costs that underpin fee-based activities. This will involve more granular costing at the business processes level.
For the next costing model development (2020-21 budget), AMSA is developing a zero-based and activity-based budgeting exercise, which will allow the model to be refined and costed using a bottom-up approach to AMSA’s regulatory activities. The development of this model will list current and new activities for service delivery, rank these activities, identifying resources required, aligning costs to activities, set a procedure for the allocation of corporate functions, and develop key performance indicators for discussion with external stakeholders.
3.2.2 Nature of costs
The nature and make-up of costs vary considerably across AMSA’s regulatory charging activities. For example, for the provision of aids to navigation there is an extensive capital cost component (depreciation and amortisation), with consistently high operational maintenance costs, reflecting the hostile weather and corrosive environments in which these assets operate.
In contrast, seafarer and ship safety regulations (for both levy and fee-based activity outputs) is labour intensive and as such has a high staff cost component. Activities with a large staffing level require a higher proportion of property operating expenditure and ICT overheads compared to activities that have minimal labour inputs—refer to overhead costs (Section 3.2.4).
3.2.3 Direct costs
Direct costs are those costs directly and clearly attributed to activities based on estimations of resource requirements for the delivery and provision of statutory and regulatory obligations. These costs may include employee costs, suppliers, and depreciation and amortisation.
Direct staff costs are allocated to activities based on an analysis, undertaken by business unit managers, of staff utilisation to achieve operational outcomes. This analysis provides and validates estimated time and effort requirements of staff assigned to each direct activity.
Direct supplier costs are assigned to activities based on an analysis of the nature of expenditure, validated by business unit managers. Supplier costs include travel and transport costs, materials and services, communication, and administrative expenses.
3.2.4 Overheads
Overheads include costs that can be either be, directly attributed to staffing levels for activities, such as property operating expenditure and information technology costs, or costs that cannot be attributed to an activity, such as corporate services and executive function support.
AMSA’s overheads are classified into the following categories (narration of the costs and their treatment in the costing model is provided):
- Property operating expenditure (POE)
- The nature of AMSA’s policy outcome requires the provision of maritime infrastructure in the form of aids to navigation, stockpile facilities for marine environmental protection and search and rescue functions, and inventories for environmental emergencies, as well as an obligation to maintain a regional presence across Australia. This corresponds to a sizeable property footprint and associated operational expenditure.
- These overhead costs are allocated to either business units based on occupancy rates for each location (for offices and remote area residential property), or directly to activities (for storage and aids to navigation).
- Information Technology (IT) and communications
- This covers software licensing and maintenance not directly attributed to activity outputs, as well as outsourced IT network and desktop support services, and general telecommunication expenditure not directly attributable to an activity.
- Costs are assigned to business units based staffing level proportions.
- Corporate support and executive functions
- Determined with reference to an analysis and estimations undertaken by business unit managers, these costs predominately consist of corporate services (IT staff costs, communications, human resources, finance, and governance), and executive functions support, including Board, and legal services not directly attributable to an activity output.
- Allocated to activity outputs based on revenue earned and normalised to consider the level of time and effort provided, and then to activity groups by direct staffing levels, after divisional support costs are assigned.
Table 3 contains the corporate support and executive function overhead rates applied for 2019–20.
Table 3: Corporate overhead percentage allocations to outputs for 2019–20
Activity output
|
Rate
|
Regulatory charging activity outputs
|
67.9%
|
Navigational infrastructure
|
19.9%
|
Environmental marine protection
|
19.9%
|
Seafarer and ship safety under Navigation Act 2012 and other Acts
|
24.8%
|
Marine services under Navigation Act 2012 and ship registration
|
1.6%
|
Marine services under national Ssstem
|
1.7%
|
Non-regulatory charging activity outputs
|
32.1%
|
Total
|
100.0%
|
Further information is provided in key cost drivers and assumptions underlying the model (Section 3.2.7).
3.2.5 Capital costs
Depreciation and amortisation expenditure is a good representation of AMSA’s capital costs, and used to determine capital expenditure requirements for the replacement and enhancement of assets. These costs are either attributable directly to the relevant activity, where there is a direct link, or on the overhead basis noted in overhead costs (Section 3.2.4) dependent on the overhead classification.
3.2.6 Attribution of costs to non-charging activities
Staff providing regulatory charging activities may also undertake other activities funded by either government budget appropriations (search and rescue coordination services and levy-based National System activities) or Australian Government agencies for targeted externally funded maritime related programs (externally funded programs).
Costs for non-regulatory charging activities are largely identified during a detailed activity analysis by business unit managers, with overheads allocated to these outputs using the same process as noted at 3.2.4 above.
3.2.7 Key cost drivers and assumptions underlying the model
AMSA’s direct costs for regulatory charging activities is ~79.8%, with overheads being ~20.2%, this is summarised in Table 4.
Table 4: Cost category break-down of regulatory charging activities for 2019–20
Cost category
|
($’000)
|
%
|
Direct (staff, suppliers, depreciation and divisional support)
|
96,871
|
79.8%
|
Overheads
|
24,476
|
20.2%
|
Total
|
121,347
|
100.0%
|
Direct costs are broken down further into cost types, staff (~33.0%), suppliers (~56.7%), and depreciation (~10.3%).
For staff costs, the driver is the time and effort spent on an activity, whereas for direct supplier costs the driver is the contracted service agreements for the provision of services, such as aids to navigation maintenance. However, this largely depends on the nature and cost of the activity, as mentioned in nature of costs (Section 3.2.2).
Assumptions underlying the model include:
- normalised revenue proportion is a reflective indicator of actual time and effort by corporate support and executive functions for overhead allocations, and
- capital costs is represented by depreciation and amortisation since these reasonably reflect the costs associated with asset replacement and enhancement.6
3.2.8 Sensitivity of cost estimates to changes in assumptions
Assumptions underlying the cost recovery model are developed to limit and constrain any significant sensitivity to the cost estimates from changes in cost drivers or demands in regulatory charging activities.
Costs predominately consist of suppliers and staff. Supplier costs are largely longer-term contracts where expenditure relates to service requirements or deliverables. These are generally not dynamic or responsive to short-term changes in demand of regulatory charging activities. Staff costs have a similar constraint for short-term movements of demand, and are based on long-term expected time and effort requirements to meet policy outcomes as identified by business unit managers.
In determining the staff and supplier cost levels, AMSA forecasts the expected level of demand for regulatory charging activities as part of its annual budgeting processes. This process is based on historical data and trends, consultation advice, understanding known economic factors, and thorough communication with principle stakeholders.
3.2.8 Cost estimates for 2019–20
Estimated costs for providing AMSA’s regulatory charging activities, broken down into direct average staffing levels (ASL), direct costs and overheads, are set out in Table 5.
Table 5: Breakdown of costs estimates for 2019–20
Activity output and groups
|
Direct
ASL*
|
Direct
($’000)
|
Overhead
($’000)
|
Total
($’000)
|
Navigational infrastructure
|
21.3
|
31,732
|
5,136
|
36,868
|
Provision and maintenance of aids to navigation, including contract management
|
9.3
|
21,967
|
2,442
|
24,409
|
Emergency towage capability
|
-
|
4,831
|
-
|
4,831
|
Business, regulations and legislative support
|
6.0
|
1,990
|
1,283
|
3,273
|
Intergovernmental and international engagement to ensure appropriate standard setting
|
4.4
|
1,409
|
1,026
|
2,434
|
Other activities specific to navigational infrastructure**
|
1.5
|
1,536
|
385
|
1,921
|
Environmental marine protection
|
30.7
|
29,184
|
5,717
|
34,901
|
Crisis preparedness to combat environmental emergencies, including training and methods for pollution response
|
8.8
|
10,441
|
1,609
|
12,050
|
Emergency towage capability
|
2.0
|
11,409
|
307
|
11,716
|
Intergovernmental and international engagement to ensure appropriate standard setting
|
5.4
|
2,006
|
965
|
2,972
|
Communications, media and parliamentary liaison for spill and pollution incidents
|
4.3
|
1,418
|
669
|
2,087
|
Business, regulations and legislative support
|
4.3
|
959
|
660
|
1,618
|
Specific legal advice, administration and representation in court and tribunals for environmental marine protection
|
1.2
|
1,168
|
257
|
1,425
|
Providing public access to environmental protection standards and policies
|
3.2
|
770
|
576
|
1,346
|
Managing resources of the National Plan
|
1.6
|
514
|
674
|
1,188
|
Other activities specific to environmental marine protection**
|
-
|
499
|
-
|
499
|
Seafarer and ship safety under Navigation Act 2012 and other Acts
|
78.1
|
25,842
|
10,359
|
36,202
|
Monitoring compliance of operational standards for seafarers and ships to ensure seaworthiness, safety and pollution prevention
|
32.3
|
11,194
|
4,564
|
15,758
|
Providing access to seafarer and ship safety standards and policies
|
16.5
|
4,311
|
2,048
|
6,359
|
Intergovernmental and international engagement to ensure appropriate standard setting
|
8.9
|
3,366
|
1,087
|
4,453
|
Business, regulations and legislative support
|
9.9
|
3,019
|
1,352
|
4,370
|
Specific legal advice, administration and representation in court and tribunals for seafarer and ship safety
|
4.8
|
1,410
|
575
|
1,985
|
Contact Centre—seafarer and ship safety
|
2.6
|
853
|
368
|
1,221
|
Other activities specific to seafarer and ship safety**
|
3.1
|
1,690
|
366
|
2,056
|
Marine services under Navigation Act 2012 and ship registration
|
16.3
|
4,865
|
1,610
|
6,474
|
Services to seafarers and coastal pilots, including examinations, assessments, and certification
|
5.5
|
2,062
|
608
|
2,670
|
Inspections and surveys
|
4.6
|
1,370
|
400
|
1,770
|
Ship registration
|
3.4
|
744
|
377
|
1,121
|
Others marine service activities**
|
2.7
|
689
|
225
|
914
|
Marine services for national system
|
19.0
|
5,248
|
1,654
|
6,902
|
Certificate of survey
|
4.5
|
1,070
|
355
|
1,426
|
Certificate of operation
|
5.9
|
1,457
|
503
|
1,960
|
Certificate of competency – near coastal
|
4.8
|
1,846
|
476
|
2,322
|
National law exemptions
|
2.8
|
693
|
244
|
936
|
Marine surveyor accreditation
|
0.8
|
182
|
76
|
258
|
Total for regulatory charging
|
165.4
|
96,871
|
24,476
|
121,347
|
* Does not include non-regulatory charging activities; only direct regulatory charging activities.
** Consists of various activities considered minor (e.g. individual costs <$1.0 million), except where noted.
3.3 Design of regulatory charges
Regulation of international and domestic commercial shipping is complex, with a wide range in the variety of vessel types, manning levels, competency requirements, and handling of various cargoes.
From 2013–14 to 2018–19, the number of levy liable visits under the Navigation Act 2012 to Australian ports by applicable foreign-flagged and domestic coastal trading vessels has remained steady, with a slight increase from ~10,000 per annum in 2013-14 to ~10,500 in 2018-19. However, total net registered tonnage volumes (the basis for collection levies) have steadily increased; signifying larger vessels are visiting Australian ports.
The majority of vessel type visits for 2018–19 continues to be bulk cargo carriers (iron ore, coal and general) (~79.6%), with liquid product and gas tankers (~8.3%), and container vessels (~5.6%) largely making up the balance. AMSA notes that over this period that the proportion of liquid product and gas tankers has been steadily rising, corresponding with Australia’s increase in gas exports.
The average number of port visits during each levy payment period (i.e. three months) varies depending on the vessel type and cargoes, with bulk cargo vessels averaging around one to two visits per levy payment period and container ships around five to six.
These factors mean that any projections of expected growth (or reductions) in demand for regulatory charging activities must consider the complex relationships within the commercial shipping industry.
3.3.1 Charging structure
The design of AMSA’s regulatory charging activity outputs considers whether a service is provided to an individual entity (where costs can be reasonably attributed to that entity) or whether the activity involves a group of entities (provided to the commercial shipping industry and the broader community).
AMSA applies a ‘user pay’ principle for regulatory charging activities. Navigational infrastructure (Marine Navigation Levy) and seafarers and ship safety under the Navigation Act 2012 and other Acts (Regulatory Function Levy) is charged against vessels that use the national network of integrated aids to navigation and traffic management measures in Australian waters and are subject to safety regulatory activities. Environmental marine protection (Protection of the Sea Levy) is charged against vessels that have the potential to be polluters of the marine environment. Fee-based activities are charged for performance, on the application or request of, a particular individual or organisation, which receive or use the benefits.
AMSA’s broad charging structure is shown in Table 6.
Table 6: Charging structure
Activity output
|
Method
|
Structure
|
Navigational infrastructure
|
Marine Navigation Levy
|
Net registered tonnage – sliding scale
|
Environmental marine protection
|
Protection of the Sea Levy
|
Net registered tonnage – linear
|
Seafarer and ship safety under Navigation Act 2012 and other Acts
|
Regulatory Function Levy
|
Net registered tonnage – sliding scale
|
Marine services under Navigation Act 2012 and ship registration
|
Fee Determination
(fee-based activities)
|
Direct (fixed) fee or hourly rate
|
Marine services under National System
|
National Law Regulation
(fee-based activities)
|
Direct (fixed) fee or hourly rate
|
Levy-based activities
The commercial shipping industry pays levies on non-exempted vessels7 that are twenty-four (24) metres or more in tonnage length, with the rate based on a vessel’s net registered tonnage (NRT), with environmental marine protection output charged for vessels that also carry ten (10) or more tonnes of oil on board8 with a minimum amount payable of $10.
A summarised Levy Ready Reckoner is shown in Table 7.
Table 7: Levy Ready Reckoner
|
Net Registered Tonnage (NRT)
|
---|
From
|
0
|
5,001
|
20,000
|
50,000
|
---|
To
|
5,000
|
19,999
|
49,999
|
∞
|
---|
Levies
|
Cents per NRT
|
Cents per NRT
|
Cents per NRT
|
Cents per NRT
|
---|
Marine Navigation Levy (MNL)
|
23.50
|
12.00
|
7.00
|
2.50
|
Regulatory Function Levy (RFL)
|
17.00
|
17.10
|
17.00
|
15.50
|
Protection of the Sea Levy
|
11.25
|
11.25
|
11.25
|
11.25
|
Levy calculation
|
51.75c for each tonne
|
$$2,587.50 plus 40.53c for each tonne over 5,000
|
$8,640.00 plus 35.25c for each tonne over 20,000 |
$19,215.00 plus 29.25c each tonne over 50,000 |
* Schedule of levy rates are contained in each respective levy legislative instruments.
International vessels are liable for levies on either the day of arrival to an Australian port, or where the vessel remains in Australia and not paid the corresponding levies in the previous three months, the day after the end of that period. For Australian coastal trading vessels, unless the vessel is out-of-service, levies are payable at the start of each quarter.
AMSA’s methodology for charging levies is derived from historical predecessors, as well as international standards where banding by net registered tonnage is considered common practice for the commercial shipping industry. Levy rates within these bands are adjusted periodically, with the last change occurring in 2014–15.
Fee-based activities
Comprises assessments of applications, inspections and surveys undertaken, registrations, conduct of examinations, and accreditations of non-government service providers. These activities are either, average time and effort requirements and associated hourly rates of labour and overheads costs, or fixed rates.
Fixed fees are applied to those regulatory activities where the range of typical delivery times do not vary significantly from the standard average time. Where there are wide variations, indicated by significant divergences from the standard deviation, the relevant charge is based on an hourly rate, plus any reasonable unavoidable travel costs. These travel costs may be flights and accommodation, where services are provided at locations remote from AMSA’s regional office9, or motor vehicle travel rates where vehicles are used for the mode of transport to and from offices.10
For 2019–20, the hourly rate for services provided under the Navigation Act 2012 will remain at $272, with national system fee-based activities rate increasing to $241 (from $238) in accordance with indexation provisions within the regulation. This is an increase of 1.3%.
The current schedule of fees-based regulatory charging activities is included in Appendix 2. Charging rates are also published on AMSA’s website.
3.3.2 Revenue estimates
Revenue estimates for 2019–20 (Budget) and the three forward estimates is summarised in Table 8, which corresponds with the 2019–20 Portfolio Budget Statement.
Table 8: Revenue estimates
Activity outputs
|
2019-20
($’000)
|
2020-21
($’000)
|
2021-22
($’000)
|
2022-23
($’000)
|
Levy-based activities
|
Navigational infrastructure
|
35,812
|
36,349
|
36,894
|
37,447
|
Environmental marine protection
|
35,961
|
36,941
|
37,038
|
37,594
|
Seafarer and ship safety
|
53,986
|
54,760
|
55,568
|
56,359
|
Total levy-based activities estimate
|
125,759
|
127,600
|
129,500
|
131,400
|
|
Fee-based activities
|
Fees under Navigation Act 2012 and Shipping Registration Act 1981
|
3,709
|
3,600
|
3,700
|
3,800
|
Fees for national system
|
3,856
|
3,659
|
3,423
|
3,479
|
Total fee-based activities estimate
|
7,565
|
7,259
|
7,123
|
7,279
|
|
Total regulatory charging estimates
|
133,324
|
134,859
|
136,623
|
138,679
|
3.3.3 Review of charging structures
AMSA is currently at the start of a comprehensive all-inclusive review of its regulatory charging activity mechanisms, structures and rates. The following specific items have been identified as commencing, or will commence within the next couple of financial years:
- Develop a zero-based and activity-based budget for 2020–21, which will allow the costing model to be refined, using a bottom-up approach to AMSA’s regulatory charging activities. This exercise will list business processes for service delivery, rank these processes, identify resources required for delivery, align costs to activities, set a procedure for the allocation of corporate support functions, and develop key performance indicators for consultation with external stakeholders.
- Portfolio Charging Review, which is a legislative evaluation exercise conducted at least every five years by Departments of State. It will encompass all AMSA’s existing regulatory charging activities, as well as the potential for charging new (or discontinuing current) activities in the provision of goods and regulatory activities to the non-government sector.
- Assess levy cost-drivers to approximate levels of resources used in producing the activity output, with the expectation to demonstrate a linkage between the level of effort and the output. This work is currently in progress, with initial findings indicating that net tonnage may be an appropriate driver of effort. However, work is still being undertaken to finalise AMSA’s conclusions, and will include stakeholder consultation on any proposed changes.
- Assess whether fee-based activity outputs are being delivered in the most effective and efficient way, at minimal costs, and whether industry can fully absorb efficient costs of service delivery.
- Review hourly and fixed rates of fee-based activities under the Navigation Act 2012, Shipping Registration Act 1981, and the National System for Domestic Commercial Vessels. Where similar personnel, expertise, and services are being provided charge-out rates should align.
- Investigate an indexation strategy (if applicable) on regulatory charging activities, reducing the need to regularly revise charge-out rates and reduce inflationary pressures on costs.
- Work with industry and government on an agreed level of maintenance and utilisation of regulatory charging reserves to fund specific requirements.
- National system review of operating costs and funding structures, scheduled to commence in 2020–21. This will include extensive stakeholder consultation on service delivery models and will provide an opportunity to address concerns raised during previous consultation rounds.
AMSA will engage widely and extensively with stakeholders providing opportunities for feedback and comments, with provisions to address industry concerns. An ongoing stakeholder engagement strategy will be prepared.