Australian Budget Reverts Temporary Shipping Levy
Trade association 'Shipping Australia' says it applauds the Abbott Government’s decision to return the temporary levy on shipping to its original (lower) level.
The Government’s budget night announcement that it will return the Protection of the Sea Levy to its original level of 11.25 cents per net registered tonne has been enthusiastically welcomed by the shipping industry.
“This decision rights a wrong that was perpetrated when the temporary levy remained in place after achieving its purpose back in 2012,” Shipping Australia chairman Ken Fitzpatrick said.
“Shipping Australia has fought long and hard, repeatedly representing this matter to Government on behalf of the shipping industry and it has taken more than two years and a change of Government to see a fair result at last.
“The industry was supportive of the establishment of a line of credit to enable the Australian Maritime Safety Authority to respond immediately to any future pollution incidents and so to minimise their impact. The pollution response reserve provides an additional guarantee.
“It is heartening to see the Abbot Government deliver on a promise previously broken by their predecessors,” he said.
The shipping industry operates in a very competitive environment with narrow margins and ultimately additional levies are paid by the consumer. The removal of this levy will contribute to making Australia’s exports more competitive and strengthen our economy.
“At a time where the shipping industry is doing it tough and with a persistently high dollar this will provide some relief from the building pressure on freight levels,” Ken Fitzpatrick said.
About Shipping Australia
The national shipping association comprises 7 member shipping lines and shipping agents that would be involved with over 70% of Australia’s container and car trade, over 60% of break bulk and bulk trades and significant cruise ship and tug operations.