{"id":"F2023L01253","name":"Shipping Reform (Tax Incentives) Regulations 2023","slug":"shipping-reform-tax-incentives-regulations-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442090,"registerId":"F2023L01253-fast-fetch-1775957193642","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Shipping Reform (Tax Incentives) Regulations 2023","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nShipping Reform (Tax Incentives) Regulations 2023\n\nI, General the Honourable David Hurley AC DSC (Retd), Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulations.\n\nDated  14th September 2023\n\nDavid Hurley\n\nGovernor‑General\n\nBy His Excellency’s Command\n\nCatherine King\n\nMinister for Infrastructure, Transport, Regional Development and Local Government\n\n \n\n \n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Schedules\n\n5 Definitions\n\nPart 2—Training and management requirements\n\n6 Training requirements\n\n7 Management requirements\n\nPart 3—Application, saving and transitional provisions\n\n8 Things done under the Shipping Reform (Tax Incentives) Regulation 2012\n\nSchedule 1—Repeals\n\nShipping Reform (Tax Incentives) Regulation 2012\n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the Shipping Reform (Tax Incentives) Regulations 2023.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered. 16 September 2023\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the Shipping Reform (Tax Incentives) Act 2012.\n\n4  Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n5  Definitions\n\nNote: A number of expressions used in this instrument are defined in the Act, including the following:\n\n(a) Australia;\n\n(b) shipping cargo;\n\n(c) shipping passenger;\n\n(d) vessel.\n\n  In this instrument:\n\nAct means the Shipping Reform (Tax Incentives) Act 2012.\n\ndeck officer training means training to be a person who:\n\n (a) is employed to carry out duties in relation to the navigation and operation of a vessel; and\n\n (b) is responsible for receiving, discharging and caring for cargo or passengers during a voyage of the vessel.\n\nengineer officer training means training to be a person who is employed on a vessel to be responsible for the propulsion and operating systems of the vessel.\n\nintegrated rating and steward training means training to be a person who is employed to carry out duties to support the navigation and operation of a vessel, including (but not limited to) any one or more of the following:\n\n (a) maintaining equipment on the vessel, including deck equipment, cargo gear, rigging and lifesaving and firefighting equipment;\n\n (b) standing lookout when the vessel is at sea and alerting deck officers when other vessels, navigation marks or hazards are seen;\n\n (c) steering the vessel under supervision;\n\n (d) securing cargo and handling mooring lines, gangways and ladders when the vessel is berthing at, or departing from, a place;\n\n (e) cleaning the vessel, including decks, structures, cargo compartments, and tanks for fresh water, ballast and oil;\n\n (f) assisting in maintaining and repairing the vessel’s engines and mechanical equipment;\n\n (g) steward duties supporting the master and crew members of the vessel, including ordering, preparing and serving food, preparing menus and similar duties.\n\nprescribed qualification means a qualification, competency, proficiency or standard prescribed by an instrument made for the purposes of subsection 29(2) of the Navigation Act 2012.\n\nPart 2—Training and management requirements\n\n \n\n6  Training requirements\n\n (1) This section specifies requirements for the purposes of the definition of training requirements in subsection 5(1) of the Act in relation to an entity for a vessel of the entity.\n\n (2) The entity must ensure that, for each vessel operated by the entity (either directly or indirectly), training is being undertaken by at least one person (the trainee) in each of the following categories:\n\n (a) engineer officer training;\n\n (b) deck officer training;\n\n (c) integrated rating and steward training.\n\n (3) However, it is not a requirement that there are 3 trainees in relation to each of those vessels.\n\nExample: If an entity operates 2 vessels, the entity must ensure that training is being undertaken by at least 6 trainees (2 trainees in each of the categories mentioned in subsection (2)), but there may be 4 trainees in relation to one of those vessels and 2 trainees in relation to the other of those vessels.\n\n (4) If there is a prescribed qualification for a category specified in subsection (2), the entity must ensure that each trainee in that category is seeking to obtain that prescribed qualification.\n\nNote: For the meaning of prescribed qualification, see section 5.\n\n (5) For each trainee undertaking training for the purposes of subsection (2), the entity must keep a record that sets out the following:\n\n (a) if the training is to be organised by a third party organisation—the name and details of the third party organisation;\n\n (b) details about that trainee, including:\n\n (i) the trainee’s name, age and gender; and\n\n (ii) the category specified in subsection (2) in which the trainee is being trained; and\n\n (iii) any prescribed qualification already held by the trainee that are relevant for the trainee’s training in that category;\n\n (c) a description of the training to be undertaken by that trainee, including:\n\n (i) the name of the prescribed qualification the trainee is seeking; and\n\n (ii) if the training is being provided by a third party organisation—the name and details of the third party organisation; and\n\n (iii) the date that the prescribed qualification is expected to be attained by the trainee;\n\n (d) details of how the training will be monitored by the entity.\n\n7  Management requirements\n\n (1) This section specifies requirements (management requirements) for the purposes of section 6 of the Act in relation to an entity for a vessel of the entity.\n\n (2) The entity must conduct in Australia:\n\n (a) crew management, in accordance with the requirements of subsection (3); and\n\n (b) at least one of the following:\n\n (i) strategic management, in accordance with the requirements of subsection (4);\n\n (ii) commercial management, in accordance with the requirements of subsection (5);\n\n (iii) technical management, in accordance with the requirements of subsection (6).\n\nCrew management\n\n (3) For the purposes of paragraph (2)(a), the requirements are that the entity, either itself or through a third party, performs the following functions:\n\n (a) recruiting and employing persons as crew of the vessel;\n\n (b) paying the crew of the vessel;\n\n (c) otherwise managing the crew of the vessel.\n\nStrategic management\n\n (4) For the purposes of subparagraph (2)(b)(i), the requirements are that the entity manages, and makes decisions that guide and control, the entity’s business activities in Australia, including (but not limited to) the following:\n\n (a) making decisions about general policies, strategic direction, contract agreements and financial matters;\n\n (b) monitoring the entity’s overall corporate performance, and reviewing the strategic direction of the entity on the basis of that performance.\n\nCommercial management\n\n (5) For the purposes of subparagraph (2)(b)(ii), the requirements are that the entity manages the commercial activities of the vessel, performing functions including (but not limited to) the following:\n\n (a) planning the route for a voyage of the vessel;\n\n (b) taking bookings for the carriage of shipping cargo or shipping passengers on the vessel;\n\n (c) taking out insurance for the vessel;\n\n (d) managing finances relating to the vessel;\n\n (e) managing charter arrangements for the vessel.\n\nTechnical management\n\n (6) For the purposes of subparagraph (2)(b)(iii), the requirements are that the entity manages the day‑to‑day operation of the vessel, performing functions including (but not limited to) the following:\n\n (a) supervising the maintenance and repair of the vessel;\n\n (b) organising and managing provisions for the vessel, including fuelling of the vessel;\n\n (c) managing safety on board the vessel.\n\nPart 3—Application, saving and transitional provisions\n\n \n\n8  Things done under the Shipping Reform (Tax Incentives) Regulation 2012\n\n (1) If:\n\n (a) a thing was done for a particular purpose under the Shipping Reform (Tax Incentives) Regulation 2012 as in force immediately before that instrument was repealed; and\n\n (b) the thing could be done for that purpose under this instrument;\n\nthe thing has effect for the purposes of this instrument as if it had been done for that purpose under this instrument.\n\n (2) Without limiting subsection (1), a reference in that subsection to a thing being done includes a reference to a notice, application or other instrument being given or made.\n\nSchedule 1—Repeals\n\n \n\nShipping Reform (Tax Incentives) Regulation 2012\n\n1  The whole of the instrument\n\nRepeal the instrument.\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The instrument repeals the Shipping Reform (Tax Incentives) Regulation 2012 (Schedule 1) and replaces it with express training and management requirements for entities operating vessels (ss6–7). It narrows scope by specifying minimum trainee categories, detailed trainee recordkeeping, and an explicit requirement that crew management and at least one of strategic, commercial or technical management be conducted in Australia. A transitional saving (s8) preserves prior actions but does not retain the prior instrument itself."},"complexity_factors":["Cross‑references to the Shipping Reform (Tax Incentives) Act 2012 and to prescribed qualifications under the Navigation Act 2012 create dependency on external instruments (see s3 and definition of prescribed qualification in s5).","Multiple defined training categories with illustrative duties (deck officer, engineer officer, integrated rating and steward) require interpretation for practical application (s5; s6(2)).","Detailed recordkeeping obligations for each trainee (including name, age, gender, qualifications, provider details and expected attainment dates) increase administrative burden (s6(5)).","Management requirements mandate onshore performance of crew management and at least one of strategic, commercial or technical management, each with enumerated functions — producing choice but also potential ambiguity about sufficiency (s7(2)–(6)).","Permitting third parties to provide or organise training and to perform crew management functions adds implementation flexibility but also requires oversight and contractual arrangements (s6(5)(a), s7(3)).","A transitional/savings clause preserves effect of things done under the repealed 2012 regulation, which complicates transition and compliance timing (s8).","Full repeal of the prior instrument means determining what materially changed requires comparing regimes; here the new text explicitly restates minimums and record rules (Schedule 1; ss6–7)."],"plain_english_summary":"This instrument repeals the 2012 Shipping Reform (Tax Incentives) Regulations and sets out specific training and on‑shore management tasks that entities operating Australian vessels must meet. Affected entities must ensure each vessel has trainees in three categories, keep prescribed records, and perform crew management plus at least one of strategic, commercial or technical management in Australia.\n\nEntities bear the compliance and recordkeeping costs, may use third parties for training or management, and must monitor and document trainee qualifications and expected attainment dates."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The regulations remain tightly focused on their original purpose: prescribing the training and management requirements necessary to access tax incentives under the Shipping Reform (Tax Incentives) Act 2012. The 2023 version appears to be a straightforward remake/replacement of the 2012 regulations with updated references and no significant expansion of scope."},"complexity_factors":["Short length (8 sections plus Schedule 1)","Minimal cross-referencing — primarily refers back to the parent Act (Shipping Reform (Tax Incentives) Act 2012) and Navigation Act 2012 for definitions","Only 4 defined terms in the instrument itself (Act, deck officer training, engineer officer training, integrated rating and steward training, prescribed qualification)","Clear structure with straightforward conditional logic (subsection 6(3) provides a simple exception/example, subsection 7(2) offers a choice of three management options)","No nested exceptions or complex temporal provisions","Simple transitional provision (section 8) that preserves existing actions under repealed instrument"],"plain_english_summary":"These regulations set the practical conditions shipping companies must meet to qualify for tax incentives under the Shipping Reform (Tax Incentives) Act 2012: mandatory in‑fleet trainees working toward recognised deck, engineer and integrated ratings/steward qualifications and detailed trainee records; and Australian‑based crew management plus at least one of strategic, commercial or technical management functions carried out from Australia. \n\nThey affect Australian shipping firms, trainees and training providers, aim to keep jobs and skills onshore, and replace the 2012 regulations while preserving past compliance."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/shipping-reform-tax-incentives-regulations-2023","history":"/api/acts/shipping-reform-tax-incentives-regulations-2023/history","analysis":"/api/acts/shipping-reform-tax-incentives-regulations-2023/analysis","conflicts":"/api/acts/shipping-reform-tax-incentives-regulations-2023/conflicts","importantCases":"/api/acts/shipping-reform-tax-incentives-regulations-2023/important-cases","documents":"/api/acts/shipping-reform-tax-incentives-regulations-2023/documents"}}