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Section 2 : Resources for 2007-08

2.1: APPROPRIATIONS AND OTHER RESOURCES

The total appropriation and other receipts to be received by the Authority in 2007-08 is estimated to be $111.0m, comprising:

  • $57.1m in Special Appropriations representing levies collected from the shipping industry to fund AMSA's ship safety and environment protection functions and appropriated under Section 48 of the AMSA Act as Special Appropriations
  • $39.3m as an annual departmental appropriation for provision of AMSA's search and rescue coordination functions
  • $9.6m as an annual administered appropriation to cover the cost to AMSA of responding to search and rescue incidents (mainly comprising aircraft/helicopter hire)
  • $4.8m in departmental revenue from independent sources, including $2.9m from fees and charges for providing a range of marine services and $1.9m from interest,
  • $0.2m administered capital (equity injections).

Details of these appropriations in 2007-08 are provided at Table 2.1. Figure 2.1 below provides a comparison with the 2006-07 budget and 2006-07 projected actual figures:

Figure 2.1: Appropriation comparison

2006-07
Projected Actual
($'000)
  2007-08
Budget
($'000)
2006-07
Budget
($'000)


39,195
8,586
Appropriations Bill No 1
Departmental Outputs
- Australian Search and Rescue
Administered Expenses


39,340
39,195


9,631
6,200
47,781 Total 48,971 45,395

18,105
24,783
4,855
Special Appropriations
Marine Navigation Levy
Regulatory Functions Levy
Protection of the Sea Levy

19,058
25,663
12,369

19,484
26,347
5,112
47,743 Total 57,090 50,942

138
27
Appropriations Bill No 2
Departmental capital (equity injections)
Administered assets and liabilities

0
172

138
0
165 Total 172 138
95,689 Total Appropriations 106,233 96,475

AMSA's administered and departmental appropriations in 2007-08 of $49.0m represent a $1.2m increase over the projected actual of $47.8m for 2006-07 and include the ongoing measures from the 2004-05 and 2005-06 Budgets to strengthen AMSA's search and rescue capability. These are discussed in Section 5.1: Analysis of Budgeted Financial Statements.

AMSA's expected total levy collection of $57.1m in 2007-08 is $9.4m higher than the projected actual total of $47.7m in 2006-07 mainly resulting from the increased levy collection from the first proposed rate rise in the Protection of the Sea Levy to be operative from 1 July 2007. This begins the recovery of the costs of the National Maritime Emergency Response Arrangements (NMERA). A small increase is expected in the collection of the Marine Navigation Levy and Regulatory Functions Levy reflecting continued high levels of shipping activity flowing from ongoing strong demand forecast in commodity exports. Section 5.1: Analysis of Budgeted Financial Statements discusses the expected levy position in 2007-08.

Table 2.1: Appropriations and other resources 2007-08

2.2: 2007-08 BUDGET MEASURES

Budget measures relating to AMSA as explained in Budget Paper No.2 are summarised in Table 2.2.

Table 2.2: AMSA measures

Further details of the measures listed are published in Budget Paper No.2.

2.3: OTHER RECEIPTS AVAILABLE TO BE USED

Table 2.3 provides details of other receipts available to be used and include CAC body receipts that are available to be spent, Special Accounts (non-appropriation receipts) and resources received free of charge. These estimates are exclusive of GST. These estimates include receipts from cost recovery arrangements within AMSA. Further explanation of AMSA's cost recovery arrangements is provided in Section 4.2: Cost recovery arrangements.

Table 2.3: Other receipts available to be used1

AMSA may make determinations fixing charges for its services under section 47 of the AMSA Act, which requires these charges to be reasonably related to the costs incurred. AMSA provides a range of marine services for which it makes a charge based on the average cost of delivering a specific service or the time taken to deliver the service multiplied by a standard hourly rate. Charges may also include waiting time, travelling expenses and cancellation fees associated with particular services.

AMSA marine services include: fee-for-service inspection of ship design, cargo, and ships' safety equipment and reinspection of ships for rectification of deficiencies identified in port State control inspections; activities involved with issuing qualifications (certificates of competency) to seafarers (conducting oral practical examinations for navigating and engineering officers and assessing sea time prerequisites for qualifications); issuing and renewing coastal pilot licences; and services provided by the Shipping Registration Office.

AMSA anticipates a slight decline in receipts from the sale of goods and services in 2007-08 compared to the 2006-07 Budget. A decline in interest accrual is expected to result from the reduction in AMSA's accumulated surplus and cash reserves, which are being used to support the phasing in of the increase in the Protection of the Sea Levy over the next two financial years, 2007-08 and 2008-09, until full cost recovery is achieved for NMERA in 2009-10. The change in these receipts is discussed further in Section 5.1: Analysis of Budgeted Financial Statements.

2.4: MOVEMENT OF ADMINISTERED FUNDS

Table 2.4: Movement of administered funds between years

AMSA did not move administered funds between years.

2.5: SPECIAL APPROPRIATIONS

Table 2.5: Estimates of expenses from Special Appropriations

AMSA is largely self-funded through three levies on the commercial shipping industry corresponding to its marine safety, regulatory and environment protection services:

  • The Marine Navigation Levy is imposed under the Marine Navigation Levy Act 1989 and Marine Navigation Levy Collection Act 1989. It funds maintenance and management of Australia's national network of aids to navigation for commercial shipping.
  • The Regulatory Functions Levy is imposed under the Marine Navigation (Regulatory Functions) Levy Act 1991 and Marine Navigation (Regulatory Functions) Levy Collection Act 1991. It funds the regulation and surveillance of the shipping industry to ensure seaworthiness and safe operation of vessels in Australian waters and enhancing maritime safety and environment protection standards.
  • The Protection of the Sea Levy is imposed under the Protection of the Sea (Shipping Levy) Act 1981 and Protection of the Sea (Shipping Levy Collection) Act 1981. It funds the operation of Australia's National Plan to Combat Pollution of the Sea by Oil and Other Noxious and Hazardous Substances and the NMERA.

The Australian Government receives levy payments from the shipping industry imposed by the levy legislation and these funds are appropriated under Section 48 of the AMSA Act as Special Appropriations.

AMSA's expected total levy collection of $57.1m in 2007-08 is $9.4m higher than the projected actual total of $47.7m in 2006-07, mainly resulting from the increased levy collection from the first proposed rate rise in the Protection of the Sea Levy to be operative from 1 July 2007. This begins the recovery of the costs of the NMERA. A small increase is expected in the collection of the Marine Navigation Levy and Regulatory Functions Levy reflecting continued high levels of shipping activity flowing from ongoing strong demand forecast in commodity exports. Section 5.1: Analysis of Budgeted Financial Statements discusses the expected levy position in 2007-08.

2.6: MOVEMENT IN SPECIAL ACCOUNTS

Table 2.6: Estimates of Special Account flows and balances

AMSA does not maintain Special Accounts.

1Amounts in this table reflect cash receipts and may differ from amounts shown as revenue from other sources at Table 3.1, which report accrued revenues.

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Budget 2006-07