• Sea Safe Work Day / Safe Work Australia Week
• Statutory Rates
• Strategies & Business Plans
• Judgements and decisions
• 2008 Seacare Awards & Conference images
• Seacare HSR Forum 2008
• Seacare HSR Forum 2009
• Manual Tasks
• HSR
• OHS
• Safe Work Australia Awards
• Death Benefits
• HarmonisationOHSlaws

Appendices

Appendix 1 Seacare Authority Financial Statements
Appendix 2 Seacare Authority publications available during 2004-05
Appendix 3 Seacare scheme coverage – guidance notes

 

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SEACARE AUTHORITY
STATEMENT OF FINANCIAL PERFORMANCE

For the year ended 30 June 2005

	Notes	2004/05 $	2003/04 $
REVENUE
Revenues from Ordinary Activities	3
Resources received free of charge		423,000	408,500
Revenues From Ordinary Activities		423,000	408,500
EXPENSE
Expenses from Ordinary Activities	4
Suppliers		423,000	408,500
Expenses From Ordinary Activities		423,000	408,500
Net surplus / (deficit) from ordinary activities		-	-

 

SEACARE AUTHORITY
SCHEDULE OF ADMINISTERED ITEMS

Revenues administered on behalf of Government
For the year ended 30 June 2005
Non-taxation revenue (Revenues From Government)
Levies	5	359,075	354,305
Total revenues administered on behalf of Government		359,075	354,305
Expenses administered on behalf of Government	6
for the year ended 30 June 2005
Supplier expenses		120,926	143,875
Write down of assets		5,141	-
Workers compensation claims expenses		70,900	145,100
Total expenses administered on behalf of Government		196,967	288,975
Assets administered on behalf of Government
as at 30 June 2005
Cash	7	-	-
Receivables	8	684,388	481,919
Total assets administered on behalf of Government		684,388	481,919
Liabilities administered on behalf of Government
as at 30 June 2005
Payables
Suppliers	9	10,550	44,746
Income received in advance		583	1,007
Levy overpayments		4,081	-
Total Payables		15,214	45,753
Provisions
Workers compensation expenses	10	216,000	145,100
Total Provisions		216,000	145,100
Total liabilities administered on behalf of Government		231,214	190,853
Net Assets Administered on Behalf of Government		453,174	291,066
Current Assets		684,388	481,919
Non current assets		-	-
Current Liabilities		15,214	45,753
Non current Liabilities		216,000	145,100

This schedule should be read in conjunction with the accompanying notes.

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SEACARE AUTHORITY
SCHEDULE OF ADMINISTERED ITEMS

Notes	2004/05 $	2003/04 $
Administered Cash Flows
For the period ended 30 June 2005
Operating Activities
Cash Received
Levies	377,238	327,593
Other – GST received from the ATO	19,920	3,777
Total cash received	397,158	331,370
Cash Used
Suppliers	171,686	109,040
Total cash used	171,686	109,040
Net cash from/(used by) operating activities	225,472	222,330
Net increase/(decrease) in cash held	225,472	222,330
Cash at the beginning of the reporting period	-	225,736
Cash from Official Public Account – Special Account	171,686	358,406
Cash to the Official Public Account – Special Account	(397,158)	(806,472)
Cash at the end of the reporting period	-	-

This schedule should be read in conjunction with the accompanying notes.

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SEACARE AUTHORITY
ADMINISTERED NOTES FOR THE YEAR ENDED 30 JUNE 2005

Note Description

1 Summary of Significant Accounting Policies

2 Adoption of Australian Equivalents to International Financial Reporting Standards from 2005-2006

3 Revenues from Ordinary Activities

4 Expenses from Ordinary Activities

5 Revenues administered on behalf of Government

6 Expenses administered on behalf of Government

7 Assets Administered on behalf of Government - Cash

8 Assets Administered on behalf of Government - Receivables

9 Liabilities Administered on behalf of Government - Payables

10 Liabilities Administered on behalf of Government - Provisions

11 Administered Reconciliation Table

12 Aged Analysis of Receivables

13 Remuneration of Auditors

14 Administered Special Accounts

15 Outcomes and Outputs

16 Remuneration of Members

 

SEACARE AUTHORITY ADMINISTERED NOTES
FOR THE YEAR ENDED 30 JUNE 2005

1 Summary of Significant Accounting Policies

1.1 Objectives of the Seacare Authority

The objective of the Seacare Authority is to take a leading role in minimising the human and financial costs of workplace injury in the Australian maritime industry.

The Authority is structured to meet the following outcome:

Outcome 1: Minimise human and financial costs of workplace injury in the Commonwealth jurisdiction.

The Seacare Authority has not reported a departmental statement of financial position as it does not control assets or incur liabilities in its own right. The Seacare Authority has not reported a departmental statement of cash flows as it did not have departmental cash flows during the 2004-2005 financial year. The administration of the Seacare Authority is performed by Comcare. The associated financial transactions are reported in the Comcare financial statements under Output 1.5: “Regulation of the Seacare scheme of workers’ compensation, rehabilitation and occupational health and safety”. The Seacare Authority has no departmental commitments or departmental contingent liabilities as at 30 June 2005.

Other Seacare Authority activities contributing toward Outcome 1 are classified as administered activities. Administered activities involve the management or oversight by the Authority, on behalf of the Government, of items controlled or incurred by the Government.

The administered activities concern a Fund which was established in October 1992. It was established for the purpose of providing through its contracted agent, Australian Maritime Industry Compensation Agency Ltd (AMICA), a safety net under Section 96 of the Seafarers Rehabilitation and Compensation Act 1992 for the compensation and rehabilitation of injured seafarers not otherwise covered by an employer. The safety net fund provides coverage to persons when undergoing industry training, attending the seafarers’ engagement system and any seafarer or company trainee in situations where the original employer is insolvent or no longer traceable.

As AMICA was unable to obtain insurance, the Minister for Employment and Workplace Relations declared on 10 April 2002 that the Seacare Authority is to have the Fund’s powers and obligations under Section 100 of the Seafarers Rehabilitation and Compensation Act 1992.

Section 102 of the Seafarers Rehabilitation and Compensation Act 1992 requires the Seacare Authority to obtain insurance cover with an authorised insurer for any amount of a claim made by an eligible person that would exceed $1m. Despite the efforts of the Authority, it was not possible to obtain this cover as at 30 June 2005.

A Special Account called the ‘Seafarers Rehabilitation and Compensation Account’ was established on the 9 August 2002 under section 21 of the Financial Management and Accountability Act 1997 to operate as the Fund to receive levies under the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 and to make payments arising from liabilities under the Seafarers Rehabilitation and Compensation Act 1992. The activities accounted for in these financial statements represent:

(a) the receipt into the Administered Official Receipts Account of levies collected under the Seafarers Rehabilitation and Compensation Levy Collection Act 1992;

(b) the transfer of these receipts to the Official Public Account in accordance with Australian Government requirements;

(c) the draw-down of Special Appropriation into the Administered Official Payments Account representing the return of the funds from the Official Public Account to meet payments under the Seafarers Rehabilitation and Compensation Act 1992; and

(d) the payment of expenses from the Administered Official Payments account.

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1.2 Basis of Accounting

The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with:

• Finance Minister’s Orders (or FMOs, being the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 30 June 2005));
  
• Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and
  
• Consensus Views of the Urgent Issues Group.
  

The Schedule of Administered Items has been prepared on an accrual basis and these are in accordance with the historical cost convention. Except where stated, no allowance is made for the effect of changing prices on the items.

Assets and liabilities are recognised in the Schedule of Administered Items when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Liabilities and assets that are unrecognised are reported in the Administered Schedule of Commitments.

1.3 Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured.

1.4 Cash

Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount. For the purposes of the schedule of administered cash flows, cash includes cash on hand and in the bank.

1.5 Administered Cash Transfers to and from Official Public Account

Levies collected by the Seacare Authority on behalf of the Australian Government rather than the Seacare Authority are Administered Revenues. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. These transfers to the OPA are adjustments to the administered cash held by the Authority on behalf of the Government and reported as such in the Schedule of Cash Flows. Thus the Schedule of Administered Items largely reflects the Government’s transactions, through the Seacare Authority, with parties outside the Government.

Administered revenue for 2004-2005 represents levies collected in accordance with the Seafarers Rehabilitation and Compensation Levy Collection Act 1992. The levies collected by the Seacare Authority are paid into the Seacare Official Receipts account and then transferred into the OPA. These receipts represent monies available for the operation of the Seafarers’ Safety Net Fund. These monies are drawn down as an Administered Special Appropriation to meet expenses of the Fund.

Administered revenues transferred or transferable to the OPA are not reported as administered expenses or payables. These transactions or balances are internal to the Administered entity and are required to be reported in both the Schedule of Administered Items and in the Administered Reconciliation Table in Note 11.

1.6 Administered Commitments

The Seacare Authority held no administered commitments as at 30 June 2005.

1.7 Administered Contingent Assets and Contingent Liabilities

The Seacare Authority held no administered contingent assets or liabilities as at 30 June 2005.

1.8 Compensation and Debt Relief in Special Circumstances

During the financial year ended 30 June 2005, the Seacare Authority made no special payments in the form of:

• Act of Grace payments;
  
• Ex- Gratia payments;
  
• payments under the Scheme for Compensation for Detriment caused by Defective Administration; or
  
• payments under section 73 of the Public Service Act 1999.
  

The Seacare Authority waived six debts totalling $22,631 for the financial year ended 30 June 2005 (2004: Nil) pursuant of a determination under of Section 34 (1) (a) of the Financial Management and Accountability Act 1997 (FMA). These debts were in relation to levies imposed under the Seafarers Rehabilitation and Compensation Levy Act 1992.

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2 Adoption of Australian Equivalents to International Financial Reporting Standards from 2005-2006

The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to apply from 2005-06. The new standards are the Australian Equivalents to International Financial Reporting Standards (AEIFRS) which are issued by the International Accounting Standards Board. The new standards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005-06, but continue to apply in the meantime.

The purpose of issuing Australian Equivalents to IFRSs is to enable Australian entities reporting under the Corporations Act 2001 to be able to more readily access overseas capital markets by preparing their financial reports according to accounting standards more widely used overseas.

The new reporting requirements are expected to have minimal impact on reporting for the Seacare Authority.

3 Revenues from Ordinary Activities

The services provided free of charge are recognised as revenue in accordance with the Finance Minister’s Orders for 2004-2005.

4 Expenses from Ordinary Activities

The value of suppliers represents the cost of services provided free of charge by the ANAO ($13,000) and Comcare ($410,000). These services are recognised as expenses in accordance with the Finance Minister’s Orders for 2004-2005.

The Seacare Authority does not employ staff. Comcare pays the expenses associated with the management of the Seacare Authority.

5 Revenues administered on behalf of government

Levies are imposed under the Seafarers Rehabilitation and Compensation Levy Act 1992 on seafarer berths (a berth on a prescribed ship that is normally used by a seafarer). The levies are payable by an employer who employs or engages seafarers on a prescribed ship.

6 Expenses administered on behalf of government

SEACARE AUTHORITY SCHEDULE OF ADMINISTERED ITEMS	2004/05 $	2003/04 $
Supplier Expenses
Rendering of services – external parties
Seacare Fund administration	109,682	110,773
Actuarial services	11,229	10,682
Brokerage services	-	11,973
Legal costs	-	10,432
Bank charges	15	15
Total Suppliers	120,926	143,875
Write down of assets	5,141	-
Workers compensation expenses	70,900	145,100
The estimated value of potential workers compensation claims is a management estimate based on available information including actuarial advice.
Total expenses administered on behalf of Government	196,967	288,975

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7 Assets Administered on behalf of Government - Cash

SEACARE AUTHORITY SCHEDULE OF ADMINISTERED ITEMS	2004/05 $	2003/04 $
Cash represents:
Special Accounts
Amounts temporarily held in the Administered Official Receipts Account	-	-
prior to being transferred to the Official Public Account
Amounts transferred from the Official Public Account and temporarily	-	-
held in the Administered Official Payments Account prior to being paid to
creditors
Total cash held as at 30 June 2005	-	-

 

8 Assets Administered on behalf of Government - Receivables

SEACARE AUTHORITY	2004/05	2003/04
SCHEDULE OF ADMINISTERED ITEMS	$	$
Receivables represent:
Monies held in the Official Public Account. These funds are available to be	673,538	448,066
drawn down to fund expenses payable under the Seafarers Rehabilitation
and Compensation Act 1992.
Levies outstanding	4,982	27,719
GST receivable	5,868	6,134
Total receivables administered on behalf of Government	684,388	481,919

 

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9 Liabilities Administered on behalf of Government - Payables

SEACARE AUTHORITY SCHEDULE OF ADMINISTERED ITEMS	2004/05 $	2003/04 $
Payables
Suppliers
Seacare Fund administration	-	24,545
Brokerage services	-	11,973
Legal costs	-	8,228
Actuarial costs	10,550	-
Total Suppliers administered on behalf of Government	10,550	44,746

 

10 Liabilities Administered on behalf of Government - Provisions

SEACARE AUTHORITY SCHEDULE OF ADMINISTERED ITEMS	2004/05 $	2003/04 $
Provisions
Provision for workers compensation claims	216,000	145,100
Total provisions administered on behalf of Government	216,000	145,100

The safety net fund provides coverage to persons when undergoing industry training, attending the seafarers’ engagement system and any seafarer or company trainee in situations where the original employer is insolvent or no longer traceable. As such, the Seacare Authority had a financial exposure to all eligible workers’ compensation claims that cannot be met by the original employer.

The value of workers compensation claims expenses was estimated by management using available information including actuarial advice. The provision for claims incurred but not yet reported (IBNR) includes a prudential margin of 35%. There have been no successful claims incurred by the fund in 2004-05.

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11 Administered Reconciliation Table

	2004/05 $	2003/04 $
Opening administered assets less administered liabilities at 1 July	291,066	-
Plus Administered revenues	359,075	354,305
Less Administered expenses	196,967	288,975
Administered transfers to/from Australian Government: Appropriation Transfers from OPA: Annual Appropriations Administered expenses Administered assets and liabilities Appropriations Special Appropriations (limited) Special Appropriations (unlimited) Transfers to OPA Restructuring Transfers to other Entities (Finance – Whole of Government) Transfers from other Entities (Finance – Whole of Government)	-	225,736
Closing administered assets less administered liabilities	453,174	291,066

 

12 Aged Analysis of Receivables

	2004/05 $	2003/04 $
Current	-	-
Overdue less than 30 days	-	-
Overdue 30 to 60 days	-	-
Overdue 61 to 90 days	4,982	15,635
Overdue more than 90 days	-	12,084
Total Receivables	4,982	27,719

 

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13 Remuneration of auditors

The Australian National Audit Office did not charge a fee for the audit of the 2004/05 financial statements. The notional amount of $13,000 was brought to account in the 2004/05 financial year as services provided free of charge (2004: $8,500).

14 Administered Special Account

A Special Account called the ‘Seafarers Rehabilitation and Compensation Account’ was established by the Financial Management and Accountability (Establishment of Special Account) Determination 2002/06 on the 9th of August 2002. The determination was made under section 21 of the Financial Management and Accountability Act 1997 by the Minister for Finance and Administration.

The account has the following purposes for, or in relation to, which amounts may be expended or transferred with in the Consolidated Revenue Fund:

(a) the payment of claims, or other amounts payable by the Authority under or by virtue of the Seafarers Act, being amounts payable because of the declaration of the Authority as the Fund;

(b) the payment of expenditure incurred in, or attributable to, the administration of the Fund;

(c) payment to persons from whom the levy was collected under the Levy Collection Act;

(d) the payment of any premium for a policy of insurance or indemnity for any amount of the Authority’s liability under the Seafarers Act;

(e) any departmental purpose or administered purpose of the Department administering the Seafarers’ Act, but only up to an amount which had previously been expended by the Department for other purposes of the Account; and

(f) payment to any trading corporation which may be approved under S.96 of the Seafarers Act to be the Fund for the purposes of that Act of an amount not exceeding the amount of the levy collected under the Levy Act less any payments made from the Account.

	2004/05 $	2003/04 $
Balance carried from previous period	448,066	-
GST receipts	19,920	3,777
Other receipts – Levy receipts	377,238	327,593
Other receipts – Transfer of funds from Department of Employment and Workplace Relations	-	225,736
Available for payments	845,224	557,106
Payments made	(171,686)	(109,040)
Other
Balance carried to the next period	673,538	448,066
Represented by:
Cash – transferred to the Official Public Account	673,538	448,066
Cash – held by the entity	-	-
Total per balance carried to the next period	673,538	448,066

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15 Outcome and Output

Note 15A Outcome and output

Outcome

The Seacare Authority is structured to meet one outcome: To minimise human and financial costs of workplace injury in the Commonwealth jurisdiction.

Output

The following output is identified with the outcome: Regulation of the Seacare scheme for workers’ compensation, rehabilitation and occupational health and safety.

Note 15B Net Cost of Outcome Delivery

	Outcome 2004/05 $	Total 2004/05 $
Administered expenses	196,967	196,967
Departmental expenses	423,000	423,000
Total expenses	619,967	619,967
External revenues
Administered revenues	359,075	359,075
Departmental revenues	-	-
Total external revenues	359,075	359,075
Net cost/(contribution) of outcome	260,892	260,892

Note 15C Departmental Revenues and Expenses by Output Groups

Outcome 1	Output 2004/05 $	Total 2004/05 $
Departmental expenses
Suppliers	423,000	423,000
Total departmental expenses	423,000	423,000
Funded By:
Resources received free of charge	423,000	423,000
Total departmental revenues	423,000	423,000

 

16 Remuneration of Members

The aggregate amount of remuneration received by the part time members of Seacare Authority, not employed by the Australian Government, but paid by Comcare (on behalf of the Seacare Authority) during the period was $5,994 (2004: $8,509).

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APPENDIX 2: SEACARE AUTHORITY PUBLICATIONS AVAILABLE DURING 2004-05

Notices to maritime industry organisations and other interested parties issued during 2004-05

03/2005	Maximum Level of Benefits (6 June 2005)
02/2005	Maximum Level of Benefits (18 April 2005)
01/2005	Indexation – Increase in Benefits from 1 July 2005 (28 February 2005)
06/2004	Maximum Level of Benefits (8 December 2004)
05/2004	Maximum Level of Benefits (10 September 2004)

Brochures

Brochure 1	Employee Rights and Responsibilities (July 2002)
Brochure 2	Employer Rights and Responsibilities (June 2000)
Brochure 3	Entitlements under the Seafarers Act (January 2001)
Brochure 4	Occupational Health and Safety (July 2002)
Brochure 5	Rehabilitation and Return to Work (January 2001)

Seacare News

Issue 8	(October 2004)
Issue 9	(January 2005)
Issue 10	(April 2005)

Forms

Name of Form	Form number	Dates
Guide to Reporting for Employers/Operators	01	Updated January 2001 Issued June 2000
Claim for Compensation	03 (SRC 100)	Updated February 2005, March 2001 and March 2002 Issued July 1999
Claim for Permanent Impairment and Non-Economic Loss and/or Related Aids	04	Updated March 2002 Issued 1996
Claim for Compensation by Dependants of Deceased Employees	05	Issued 1997
OHS Incident Alert	06	Issued June 1999
OHS Incident Report	07	Issued June 1999
Claim Update	08	Updated March 2001 Issued June 2000
Section 20A application for exemption from the application of the Seafarers Rehabilitation and Compensation Act 1992	10	Updated May 2002 and November 2000 Issued June 2000
Levy and Berths Return	11	Issued June 2002
Employer’s Determination of a Claim for Workers’ Compensation	12 (SRC 90)	Issued February 2005

 

Other Publications

• Guidance on the Prohibition on the Use of Asbestos in Australian Maritime Industry Workplaces Version 3 - March 2004
  
• Guidance Note – Coverage under the Seafarers Rehabilitation and Compensation Act 1992 (SeafarersAct) – June 2003
  
• Guidance Note on Manual Handling and Body Stressing in the Australian Maritime Industry– December 2002
  
• Seafarers Rehabilitation and Return to Work – A Best Practice Guide for the Australian ShippingIndustry – February 2002
  
• Seafarers Rehabilitation and Return to Work – A Short Version of the Best Practice Guide for the Australian Shipping Industry – February 2002
  
• Seafarers Rehabilitation and Return to Work – A Summary (Wall Chart) of Key Actions Employers canTake to Assist Recovery, Rehabilitation and Return to Work of an Injured Seafarer – February 2002
  
• Seafarers Rehabilitation and Return to Work – PowerPoint Presentation (only available on the SeacareAuthority website) – February 2002
  

All of the above publications were issued free of charge and are available from the Authority and via the Seacare Authority website - www.seacare.gov.au.

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APPENDIX 3: SEACARE SCHEME COVERAGE – GUIDANCE NOTES

 

Advice on the application of the Seafarers Act may be obtained from:

Seacare Management Group
Seafarers Safety, Rehabilitation and Compensation Authority
Phone: 02 6275 0070
Email: seacare@comcare.gov.au

Disclaimer

This guidance note is not intended to be a legal document or to provide legal advice. This document is intended to be a guide only as to the application of the Seafarers Rehabilitation and Compensation Act 1992. This document should not be relied on as a complete statement of the law. Persons who may be affected by the application of the Seafarers Act should seek their own legal advice.

Coverage under the Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act) Guidance Notes

The application provisions of the Seafarers Rehabilitation and Compensation Act 1992 (Section 19)

19.(1) This Act applies to the employment of employees on a prescribed ship that is engaged in trade or commerce:

(a) between Australia and places outside Australia; or

(aa) between 2 places outside Australia; or

(b) among the States; or

(c) within a Territory, between a State and a Territory or between 2 Territories.

(1A)  In addition, this Act applies to the employment of employees on any prescribed ship that is:

(a) an offshore industry vessel in relation to which a declaration under subsection 8A(2) of the Navigation Act is in force; or

(b) a trading ship in relation to which a declaration under subsection 8AA(2) of that Act is in force.

(2) This Act also has the effect it would have if:

(a)  a reference to an employer were limited to a reference to a trading corporation formed within the limits of the Commonwealth; and

(b) a reference to an employee were limited to a reference to an employee employed by a trading corporation formed within the limits of the Commonwealth.

(3) This Act also has the effect it would have if:

(a) a reference to an employer were limited to a reference to a financial corporation formed within the limits of the Commonwealth; and

(b) a reference to an employee were limited to a reference to an employee employed by a financial corporation formed within the limits of the Commonwealth.

(4) This Act also has the effect it would have if:

(a) a reference to an employer were limited to a reference to a foreign corporation; and

(b) a reference to an employee were limited to a reference to an employee employed by a foreign corporation.

(5) Subsection (3) does not have the effect of applying this Act with respect to:

(a) State banking that does not extend beyond the limits of the State concerned; or

(b) State insurance that does not so extend.

Note: The application provisions of the Occupational Health and Safety (Maritime Industry) Act 1993 (Section 6) and the Seafarers Rehabilitation and Compensation Levy Act 1992 (Section 6) are set out at Attachment 1.

Seafarers Act – coverage tests

Test 1: Is there employment of employees¹? [that is, is there an employer-employee relationship – independent contractor and partnership arrangements must be genuine to fail the employment test].

Note: - Section 19 of the Seafarers Act limits references to employer to trading, financial and foreign corporations and references to employees to employees employed by trading, financial and foreign corporations².

Test 2: Is the ship³ a prescribed ship?

Section 3 of the Seafarers Act provides that a prescribed ship means a ship to which Part II of the Navigation Act 1912 (the Navigation Act) applies but does not include a Government ship⁴.

Part II of the Navigation Act (refer to section 10 of the Navigation Act) generally applies to⁵:

a. a ship registered⁶ in Australia; or

b. a ship (other than a ship registered in Australia) engaged in the coasting trade⁷; or

c. a ship (other than a ship registered in Australia or engaged in the coasting trade) of which the majority of the crew are residents of Australia and which is operated by⁸ any of the following (whether or not in association with any other person, firm or company, being a person, firm or company of any description) namely:

(i) a person who is a resident of, or has his/her principal place of business in, Australia;

(ii) a firm that has its principal place of business in Australia; or

(iii) a company that is incorporated, or has its principal place of business, in Australia.

Test 3: Is the prescribed ship engaged in trade or commerce⁹:

a. between Australia and places outside Australia¹⁰;

b. between 2 places outside Australia;

c. among the States (inter-State);

d. within a Territory (intra-Territorial);

e. between a State and Territory; or

f. between 2 Territories.

[If the ship is engaged in any of the voyage types described in a-f above, it meets test 3].

If the answer to test 1, and test 2 and test 3 is in the affirmative, then the ship is covered by the Seafarers Act.

Test 4: Is the prescribed ship an offshore industry vessel to which a declaration under subsection 8A(2) of the Navigation Act is in force [a check of the AMSA website at www.amsa.gov.au/ will provide a guide as to whether the ship is so declared]

Test 5: Is the prescribed ship a trading ship to which a declaration under subsection 8AA(2) of the Navigation Act is in force [a check of the AMSA website at www.amsa.gov.au/ will provide a guide as to whether the ship is so declared]

If the answer to tests 1 and 2 is answered in the affirmative AND also either test 4 or test 5 is answered in the affirmative, then the ship will be covered by the Seafarers Act irrespective of whether it meets test 3 above (i.e. irrespective of whether it is engaged in trade or commerce between Australia and places outside Australia, or between 2 places outside Australia, among the States, within a Territory, between a State and Territory or between 2 Territories). In summary, a ship that is declared under s.8A or s.8AA must also be a prescribed ship to be covered by the Seafarers Act.

Exemptions from the operation of the Seafarers Act

Section 20A of the Seafarers Act provides that the Seacare Authority may exempt the employment on a particular ship of all employees, or a particular group or groups of employees or a particular employee or particular employees, from the operation of the Seafarers Act. Regard should be had to the exemption guidelines issued by the Authority, which are available from the Seacare website, when considering an application for exemption.

An exemption granted under section 20A of the Seafarers Act, which exempts some or all employment from the operation of the Seafarers Act does not have the effect of exempting the operator from the operation of the OH&S(MI) Act. An employer or operator who is subject to a s20A exemption must still comply with the provisions of the OH&S(MI) Act.

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Interpretation Section

¹ Employee is defined in section 4 of the Seafarers Act to mean a seafarer or trainee or a person (other than a trainee), although ordinarily employed or engaged as a seafarer, is not so employed or engaged but is required under an award to attend a Seafarers Engagement Centre for the purposes of registering availability for employment or engagement on a prescribed ship (the Seafarers Engagement Centres were phased out in 1998).

A seafarer means a person employed in any capacity on a prescribed ship on the business of the ship, other than: (a) a pilot; (b) a person temporarily employed on the ship in port; or (c) a person included in the class of persons defined as “special personnel” in Section 283 of the Navigation Act (e.g. scientists, technicians carried on board a ship engaged in research, expeditions or surveys).

Section 283 of the Navigation Act provides that ‘special personnel’ means persons carried on board a special purpose ship with the knowledge or consent of the owner, agent or master of the ship, other than the master of any other member of the crew of the ship, a pilot, a person temporarily employed on the ship in port or any person included in a class of persons prescribed for paragraph (d) of the definition. Part 50 of the Marine Orders (Order 14 of 1999) prescribes certain ships as special purpose ships for the purposes of section 283 of the Navigation Act. Special purpose ships are prescribed as mechanically self-propelled ships which, by reason of their function, carry on board (a) more than 12 special purpose personnel or (b) a combination of passengers and special purpose personnel where the combined total exceeds 12 but the number of passengers does not exceed 12. The Marine Order notes that the combined effect of the provisions in the Marine Order is that “special personnel” are persons employed on the ship in connection with the special purpose of the ship or related special work performed on board the ship. An example of ships that would normally be regarded as special purpose ships are ships engaged in research, expeditions and survey.

² Section 3 of the Seafarers Act defines a financial corporation to mean a financial corporation within the meaning of Paragraph 51(xx) of the Commonwealth Constitution, a foreign corporation to mean a foreign corporation within the meaning of paragraph 5 1(xx) of the Constitution and includes a body that is incorporated in an external Territory and a trading corporation to mean a trading corporation within the meaning of paragraph 51(xx) of the Constitution.

³ Section 6 of the Navigation Act defines a ship to mean any kind of vessel used in navigation by water, however propelled or moved and includes:

(a) a barge, lighter or other floating vessel (that is self propelled - see endnote 5 below for the types of ships to which Part II of the Navigation Act does not apply);

(b) an air cushion vehicle, or other similar craft, used wholly or primarily in navigation by water; and

(c) an offshore industry mobile unit (with the exception of those that are not self-propelled, and where self propelled, only when being moved).

⁴ Section 3 of the Seafarers Act defines a government ship to mean a ship:

(a) that belongs to the Commonwealth or a State or Territory;

(b) the beneficial interest in which is vested in the Commonwealth or a State or Territory; or

(c) that is for the time being demised or sub-demised to, or in the exclusive possession of, the Commonwealth, a State or a Territory;

and includes a ship that belongs to an arm of the Defence Force, but does not include a ship:

(d) that belongs to a trading corporation that is an authority or agency of the Commonwealth or a State or Territory; or

(e) the beneficial interest in which is vested in such a trading corporation; or

(f)that is for the time being demised or sub-demised to, or in the exclusive possession of a
trading corporation; or

(g) that is operated by seafarers supplied (directly or indirectly) by a corporation under a contract with the Commonwealth or a State or Territory.

⁵ Part II of the Navigation Act does not apply to inland waterway vessels, pleasure crafts, barges, lighters or other floating vessels which are not self-propelled. However for the purposes of the definition of ‘prescribed ship’ in the Seafarers Act, Part II of the Navigation Act may apply, for example, to fishing vessels and fishing fleet support vessels (irrespective of the type of voyage they are proceeding on).

⁶ A ship registered in Australia is defined by section 7A of the Navigation Act, which provides that a reference to a ship registered in Australia shall be read as a reference to a ship registered under the Shipping Registration Act 1981 and as including a reference to a ship that is required to be registered under that Act but is not so registered. Reference should also be made to section 8B (ships imported into Australia) and 283G (off-shore industry vessels and mobile units) of the Navigation Act which deems certain ships to be registered in Australia where there are no declarations to the contrary.

⁷ To determine if a ship is engaged in the coasting trade reference should be made to the definition of ‘coasting trade’ in section 7 of the Navigation Act, which in turn will assist in determining whether a ship is a ‘prescribed ship’ for the purposes of the Seafarers Act. A ship which has a licence to engage in the coasting trade will be a prescribed ship for the purposes of the Seafarers Act. However an unlicensed ship which has been issued with a permit or permission under section 286 of the Navigation Act, whilst engaged in the activities covered by the permit or permission, would not be ‘engaged in the coasting trade’ for the purposes of subsection 10(b) of the Navigation Act.

⁸ Operated by is not defined in the Seafarers Act or Navigation Act and needs to be given its ordinary meaning.

⁹ Trade or commerce has a wide meaning. It will be a question of fact in each case as to whether a ship engages in trade or commerce. For example, the interstate transportation of goods or persons for any purpose when done for profit or reward (such as would be involved in tourism operations) would come within the scope of interstate trade or commerce.

¹⁰  Australia includes offshore areas to the outer limit of the territorial sea (see section 15B of the Acts

Interpretation Act 1901). The outer limit of the territorial sea was established by Proclamation under section 7 of the Seas and Submerged Lands Act 1973 as 12 nautical miles seaward of baselines, also established by Proclamation under section 7 of the Seas and Submerged Lands Act 1973.

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Attachment 1

The application provisions of the Occupational Health and Safety (Maritime Industry) Act 1993 (Section 6)

(1) This Act applies in relation to a prescribed ship or prescribed unit that is engaged in trade or commerce:

(a) between Australia and places outside Australia; or

(aa) between 2 places outside Australia; or

(b) between the States; or

(c) within a Territory, between a State and a Territory or between 2 Territories.

(2) Without limiting the operation of subsection (1), this Act applies to:

(a) the operator of a prescribed ship or prescribed unit described in subsection (1); and

(b) employees employed on a prescribed ship or prescribed unit described in subsection (1); and

(c) contractors and other persons working on a prescribed ship or prescribed unit described in subsection(1); and

(d) manufacturers, suppliers and importers of plant used, or substances used or handled, on a prescribed ship or prescribed unit described in subsection (1).

(3) This Act also applies in relation to:

(a) an offshore industry vessel in relation to which a declaration under subsection 8A(2) of the Navigation Act 1912 is in force; and

(b) a trading ship in relation to which a declaration under subsection 8AA(2) of that Act is in force.

(4) Without limiting the operation of subsection (3), this Act applies to:

(a) the operator of a vessel or ship described in subsection (3); and

(b) employees employed on a vessel or ship described in subsection (3);and

(c) contractors and other persons working on a vessel or ship described in subsection (3); and

(d) manufacturers, suppliers and importers of plant used, or substances used or handled on, a vessel or ship described in subsection (3).

(5) Without prejudice to its effect apart from this subsection, this Act also has effect as provided by subsections (6), (7) and (8).

(6) This Act has, by force of this subsection, the effect it would have if:

(a) a reference to an operator were limited to a reference to a trading corporation formed within the limits of the Commonwealth; and

(b) a reference to an employee were limited to a reference to an employee of a trading corporation formed within the limits of the Commonwealth; and

(c) a reference to a contractor were limited to a reference to a contractor working for a trading corporation formed within the limits of the Commonwealth; and

(d) a reference to a manufacturer were limited to a reference to a manufacturer that is a trading corporation formed within the limits of the Commonwealth; and

(e) a reference to a supplier were limited to a reference to a supplier that is a trading corporation formed within the limits of the Commonwealth; and

(f) a reference to a person in sections 22, 23 and 24 were limited to a reference to a person working for a trading corporation formed within the limits of the Commonwealth.

(7) This Act has, by force of this subsection, the effect it would have if.

(a) a reference to an operator were limited to a reference to a financial corporation formed within the limits of the Commonwealth; and

(b) a reference to an employee were limited to a reference to an employee of a financial corporation formed within the limits of the Commonwealth; and

(c) a reference to a contractor were limited to a reference to a contractor working for a financial corporation formed within the limits of the Commonwealth; and (d) a reference to a person in sections 22, 23 and 24 were limited to a reference to a person working for a financial corporation formed within the limits of the Commonwealth.

(8) This Act has, by force of this subsection, the effect it would have if.

(a) a reference to an operator were limited to a reference to a foreign corporation; and

(b) a reference to an employee were limited to a reference to an employee of a foreign corporation; and

(c) a reference to a contractor were limited to a reference to a contractor working for a foreign corporation; and

(d) a reference to a manufacturer were limited to a reference to a manufacturer that is a foreign corporation; and

(e) a reference to a supplier were limited to a reference to a supplier that is a foreign corporation; and

(f) a reference to a person in sections 22, 23 and 24 were limited to a reference to a person working for a foreign corporation.

(9) This Act does not apply with respect to:

(a) State banking that does not extend beyond the limits of the State concerned; or

(b) State insurance that does not so extend.

 

The application provisions of the Seafarers Rehabilitation and Compensation Levy Act 1992 (Section 6)

6. Levy on Seafarer berths is payable by an employer who employs or engages Seafarers on a prescribed ship.

The Seafarers Rehabilitation and Compensation Levy Act 1992 and the Seafarers Rehabilitation and Compensation Levy Collection Act 1992 apply to employers who employ or engage seafarers on prescribed ships which are subject to the application of the Seafarers Act by reason of section 19 of that Act.

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LIST OF ABBREVIATIONS, ACRONYMS AND TERMS

 

AAT	Administrative Appeals Tribunal
AMICA	Australian Maritime Industry Compensation Agency Ltd, the trustee for AMICF
AMICF	Australian Maritime Industry Compensation Foundation
AMSA	Australian Maritime Safety Authority
RTW Monitor	Return to Work Monitor
CPM	Comparative Performance Monitoring (report)
DEWR	Department of Employment and Workplace Relations
FMA Act	Financial Management and Accountability Act 1997
FPSO	Floating Production Storage and Offloading facility
FSO	Floating Storage and Offloading facility
FTE	Full time equivalent. The formula for calculating a FTE employee number in this report is - The standard complement of seafarers engaged on each ship at any one time (i.e. ship berths) X the proportion of the reporting period that the vessel was operational and/or the seafarers were covered under the Seafarers Act X the usual weekly shift hours worked on the vessel (according to the relevant industrial agreement) divided by average weekly working hours. (Note: the latest available [2004] Australian Bureau of Statistics average hours worked per week by persons employed full time is 40.4 )
Hours worked (adjusted)	A reference to the method for adjusting hours worked data used in Seacare Authority Annual Reports prior to 2003-04, where hours were adjusted by employers at the time of reporting to the Seacare Authority to reflect a 12 hour working day in the bluewater sector and a 14 hour working day in the offshore sector, for data comparability purposes
Hours worked	Calculated using the following formula – The standard complement of seafarers engaged on each ship at any one time (i.e. ship berths) X the number of hours (on average) per day the crew are on board, whether at work or not X the number of days the ship was operational (and was operating under the Seafarers Act) in the reporting period = hours worked. The formula aims to reflect a 24 hour working day for each day a seafarer is on board
HWCA	Heads of Workers’ Compensation Authorities (formerly Heads of Workplace Safety and Compensation Authorities – HWSCA) – a national consultative forum comprising the heads of all Australian workers’ compensation agencies
HWSA	Heads of Workplace Safety Authorities – a national consultative forum comprising the heads of all Australian OHS agencies
Injury Frequency rate	An outcome indicator of OHS performance – denoted as the number of lost time workers’ compensation claims per million hours worked
Injury Incidence rate	A recognised outcome indicator of OHS performance – denoted as the number of lost time workers’ compensation claims per 1 000 employees (seafarers)
Inspectorate	The OHS Inspectorate managed by AMSA under the OHS(MI) Act
Levy Act	Seafarers Rehabilitation and Compensation Levy Act 1992
Levy Collection Act	Seafarers Rehabilitation and Compensation Levy Collection Act 1992
MOU	Memorandum of Understanding
NDS	National Data Set – a set of nationally agreed data specifications for the supply of workers’ compensation data to NOHSC for CPM reporting and other data reporting purposes
Navigation Act	Navigation Act 1912
NOHSC	National Occupational Health and Safety Commission
NOPSA	National Offshore Petroleum Safety Authority
OHS	Occupational Health and Safety
OHS(MI) Act	Occupational Health and Safety (Maritime Industry) Act 1993
PBS	Portfolio Budget Statement
PSL Act	Petroleum (Submerged Lands) Act 1967
RTW	Return to Work
SMG	Seacare Management Group (the unit in Comcare supporting the Seacare Authority and the Seacare function)
Seacare News	The Seacare Authority’s periodic newsletter to stakeholders
Seafarers Safety Net Fund	The safety net Fund (the Fund) established by Division 2 of Part 7 of the Seafarers Act
Seacare	The trading name or abbreviation to describe the Seacare scheme
Seacare Authority	Seafarers Safety, Rehabilitation and Compensation Authority
Seacare scheme	The scheme of workers’ compensation, rehabilitation and return to work established by the Seafarers Act, as well as the arrangements for occupational health and safety under the OHS(MI) Act
Seacare Online	The Seacare scheme employer on-line data reporting system
Seafarers Act	Seafarers Rehabilitation and Compensation Act 1992
Sea Safe-Work Awards	The Seacare Authority Awards program, recognising outstanding OHS and rehabilitation performance
SPISIC	Safety Performance Indicators for the Shipping Industry Committee
Taylor Fry	Taylor Fry Pty Ltd (an actuarial consultant contracted to the Seacare Authority)
WRMC	Workplace Relations Ministers’ Council

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