The Admiralty Act centralises admiralty jurisdiction in federal and specified state courts, defines what counts as maritime claims, and gives claimants strong remedies (including arrest and sale of ships or proceeds) while preserving limits like immunity for government ships and protections for innocent passage.
It affects shipowners, charterers, crew, cargo owners, mortgagees, salvors and insurers; it matters because it creates predictable enforcement tools, routes for limitation of liability, and detailed procedural rules that shape costs, risks and dispute‑resolution choices in maritime commerce.
The Admiralty Act 1988 comprehensively codifies and modernises the admiralty jurisdiction of Australian courts. At its heart, the Act defines the categories of disputes that qualify as maritime claims and then prescribes the procedural pathways by which those claims may be litigated, particularly through actions in rem against ships or other maritime property.
Part I (Preliminary) supplies an exhaustive set of definitions (s 3) that are foundational. “Ship” is defined broadly to include barges, hovercraft and offshore mobile units but excludes seaplanes and inland waterways vessels. “Maritime claim” is bifurcated into proprietary maritime claims (s 4(2)) and general maritime claims (s 4(3)). Proprietary claims encompass possession, title, mortgages and co-ownership disputes. The list of general maritime claims is lengthy: damage by a ship, pollution liability under the Protection of the Sea (Civil Liability) Act 1981 and the Bunker Oil regime, personal injury arising from ship defects, cargo claims, charterparty disputes, salvage, general average, towage, pilotage, necessaries supplied to a ship, construction and repair claims, port dues, crew wages, and arbitral awards relating to any of the foregoing.
Parts II and III are the operational core. Section 9 confers in personam jurisdiction on the Federal Court, Federal Circuit and Family Court (Division 2), Territory courts and (via federal jurisdiction) State courts for maritime claims and claims for damage done to a ship. Sections 10 and 11 invest or confer in rem jurisdiction on superior courts and, by Proclamation, certain other State and Territory courts. The critical rights to proceed in rem are set out in ss 15–19. A maritime lien or charge permits an action in rem against the ship (s 15). Proprietary claims also ground proceedings (s 16). For general maritime claims, s 17 permits an action where the relevant person was owner or charterer at the time the cause of action arose remains owner at the time proceedings commence. Section 18 extends this to demise charterers, while s 19 introduces the surrogate-ship arrest mechanism: if the relevant person owned or chartered the wrongdoing ship at the relevant time and now owns another ship, that second ship may be arrested.
Current sections
Direct links to the current provisions in Admiralty Act 1988.
54
Part I
Preliminary
Part I—Preliminary
1
Short title
1 Short title
This Act may be cited as the Admiralty Act 1988.
2
Commencement
2 Commencement
This Act commences on a day to be fixed by Proclamation.
3
Interpretation
3 Interpretation
(1) In this Act, unless the contrary intention appears:
Australia, when used in a geographical sense, includes each external Territory.
Civil Liability Convention has the same meaning as the Convention has in the Protection of the Sea (Civil Liability) Act 1981.
coastal sea of Australia means:
(a) the territorial sea of Australia; and
(b) the sea on the landward side of the territorial sea of Australia and not within the limits of a State or Territory.
commencement, in relation to a proceeding, has the meaning given by subsection (2).
costs and expenses, in relation to the Marshal, has the meaning given by subsection (5).
entering appearance has the meaning given by subsection (4).
Federal Court means the Federal Court of Australia.
foreign ship means a ship that is not registered, and is not permitted to be registered, under the Shipping Registration Act 1981.
freight includes passage money and hire.
goods, in relation to a ship, has the meaning given by subsection (3).
hovercraft means an air‑cushion vehicle, or a similar vehicle, used wholly or principally in navigation by water.
initiating process includes a third party notice.
inland waters means waters within Australia other than waters of the sea.
inland waterways vessel means a vessel used or intended to be used wholly on inland waters.
Liability Convention means:
(a) the Civil Liability Convention;
(b) the Limitation Convention; or
(c) any other international convention that is in force in relation to Australia and makes provision with respect to the limitation of liability in relation to maritime claims.
Limitation Convention has the meaning given to the expression Convention by subsection 3(1) of the Limitation of Liability for Maritime Claims Act 1989.
limitation proceeding means a proceeding under:
(a) section 25 of this Act;
(b) section 9 of the Limitation of Liability for Maritime Claims Act 1989; or
(c) section 10 of the Protection of the Sea (Civil Liability) Act 1981.
maritime claim, general maritime claim and proprietary maritime claim have the meanings given by section 4.
master, in relation to a ship, means a person who has command or charge of the ship.
member of the crew, in relation to a ship, means a person employed or engaged in any capacity on board the ship on the business of the ship, other than:
(a) the master of the ship;
(b) a person who has the conduct of the ship as the pilot of the ship; or
(c) a person temporarily employed on the ship in port.
mortgage, in relation to a ship or a share in a ship, includes a hypothecation or pledge of, and a charge on, the ship or share, whether at law or in equity and whether arising under the law in force in a part of Australia or elsewhere.
off‑shore industry fixed structure means a structure (including a pipeline) that:
(a) is fixed to the seabed and is not able to move or be moved as a structure from one place to another; and
(b) is used or intended for use wholly or primarily in, or in any operations or activities associated with or incidental to, exploring or exploiting the mineral and other non‑living resources of:
(i) the continental shelf of Australia; or
(ii) the seabed of the coastal sea of Australia or the subsoil of that seabed.
off‑shore industry mobile unit means:
(a) a vessel, or a structure other than a vessel that is able to float or be floated and to move or be moved as a structure from one place to another, that is used or intended for use wholly or primarily in, or in any operations or activities associated with or incidental to, exploring or exploiting the mineral and other non‑living resources of:
(i) the continental shelf of Australia; or
(ii) the seabed of the coastal sea of Australia or the subsoil of that seabed;
by drilling, or by obtaining substantial quantities of material from, the seabed or its subsoil, with equipment that is on or forms part of the vessel or structure; or
(b) a barge or similar vessel fitted with living quarters for more than 12 persons and used or intended for use wholly or primarily in connection with the construction, maintenance or repair of off‑shore industry fixed structures.
relevant person, in relation to a maritime claim, means a person who would be liable on the claim in a proceeding commenced as an action in personam.
sea includes all waters within the ebb and flow of the tide.
ship means a vessel of any kind used or constructed for use in navigation by water, however it is propelled or moved, and includes:
(a) a barge, lighter or other floating vessel;
(b) a hovercraft;
(c) an off‑shore industry mobile unit; and
(d) a vessel that has sunk or is stranded and the remains of such a vessel;
but does not include:
(e) a seaplane;
(f) an inland waterways vessel; or
(g) a vessel under construction that has not been launched.
surrogate ship has the meaning given by subsection (6).
this Act includes the regulations and the Rules made under this Act.
(2) A reference in this Act to the time when a proceeding is commenced is a reference to the time when the initiating process in relation to the proceeding is filed in, or issued by, a court.
(3) A reference in this Act to goods, in relation to a ship, includes a reference to the baggage and other possessions of a person who is on the ship, being baggage and possessions that are being carried or are to be carried on the ship.
(4) A reference in this Act to the entering of appearance includes a reference to any similar procedure.
(5) A reference in this Act to the costs and expenses of the Marshal includes a reference to the amounts payable to a person acting in accordance with the Rules as a Marshal of a court.
(6) For the purposes of this Act, where:
(a) a proceeding on a maritime claim may be commenced against a ship under a provision of this Act (other than section 19); and
(b) under section 19, a proceeding on the claim may be commenced against some other ship;
the other ship is, in relation to the claim, a surrogate ship.
4
Maritime claims
4 Maritime claims
(1) A reference in this Act to a maritime claim is a reference to a proprietary maritime claim or a general maritime claim.
(2) A reference in this Act to a proprietary maritime claim is a reference to:
(a) a claim relating to:
(i) possession of a ship;
(ii) title to, or ownership of, a ship or a share in a ship;
(iii) a mortgage of a ship or of a share in a ship; or
(iv) a mortgage of a ship’s freight;
(b) a claim between co‑owners of a ship relating to the possession, ownership, operation or earnings of the ship;
(c) a claim for the satisfaction or enforcement of a judgment given by a court (including a court of a foreign country) against a ship or other property in a proceeding in rem in the nature of a proceeding in Admiralty; or
(d) a claim for interest in respect of a claim referred to in paragraph (a), (b) or (c).
(3) A reference in this Act to a general maritime claim is a reference to:
(a) a claim for damage done by a ship (whether by collision or otherwise); or
(b) a claim in respect of the liability of the owner of a ship arising under Part II or IV of the Protection of the Sea (Civil Liability) Act 1981 or under a law of a State or Territory that makes provision as mentioned in subsection 7(1) of that Act; or
(ba) a claim under:
(i) the applied provisions (within the meaning of the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Act 2008); or
(ii) a law of a State or Territory of a kind referred to in subsection 10(1) of that Act; or
(c) a claim for loss of life, or for personal injury, sustained in consequence of a defect in a ship or in the apparel or equipment of a ship; or
(d) a claim (including a claim for loss of life or personal injury) arising out of an act or omission of:
(i) the owner or charterer of a ship;
(ii) a person in possession or control of a ship; or
(iii) a person for whose wrongful acts or omissions the owner, charterer or person in possession or control of a ship is liable;
being an act or omission in the navigation or management of the ship, including an act or omission in connection with:
(iv) the loading of goods on to, or the unloading of goods from, the ship;
(v) the embarkation of persons on to, or the disembarkation of persons from, the ship; and
(vi) the carriage of goods or persons on the ship; or
(e) a claim for loss of, or damage to, goods carried by a ship; or
(f) a claim arising out of an agreement that relates to the carriage of goods or persons by a ship or to the use or hire of a ship, whether by charterparty or otherwise; or
(g) a claim relating to salvage (including life salvage and salvage of cargo or wreck found on land); or
(h) a claim in respect of general average; or
(j) a claim in respect of towage of a ship; or
(k) a claim in respect of pilotage of a ship; or
(m) a claim in respect of goods, materials or services (including stevedoring and lighterage services) supplied or to be supplied to a ship for its operation or maintenance; or
(n) a claim in respect of the construction of a ship (including such a claim relating to a vessel before it was launched); or
(o) a claim in respect of the alteration, repair or equipping of a ship; or
(p) a claim in respect of a liability for port, harbour, canal or light tolls, charges or dues, or tolls, charges or dues of a similar kind, in relation to a ship; or
(q) a claim in respect of a levy in relation to a ship, including a shipping levy imposed by the Protection of the Sea (Shipping Levy) Act 1981, being a levy in relation to which a power to detain the ship is conferred by a law in force in Australia or in a part of Australia; or
(r) a claim by a master, shipper, charterer or agent in respect of disbursements on account of a ship; or
(s) a claim for an insurance premium, or for a mutual insurance call, in relation to a ship; or
(t) a claim by a master, or a member of the crew, of a ship for:
(i) wages; or
(ii) an amount that a person, as employer, is under an obligation to pay to a person as employee, whether the obligation arose out of the contract of employment or by operation of law, including the operation of the law of a foreign country; or
(u) a claim for the enforcement of, or a claim arising out of, an arbitral award (including a foreign award within the meaning of the International Arbitration Act 1974) made in respect of a proprietary maritime claim or a claim referred to in one of the preceding paragraphs; or
(w) a claim for interest in respect of a claim referred to in one of the preceding paragraphs.
5
Application
5 Application
(1) Subject to the succeeding provisions of this section, this Act applies in relation to:
(a) all ships, irrespective of the places of residence or domicile of their owners; and
(b) all maritime claims, wherever arising.
(2) This Act does not apply in relation to a proceeding commenced before the commencement of this Act.
(3) This Act does not apply in relation to a cause of action that arose:
(a) in respect of an inland waterways vessel; or
(b) in respect of the use or intended use of a ship on inland waters.
(4) Paragraph (3)(b) does not have effect in relation to a cause of action if, at the time when the cause of action arose, the ship concerned was a foreign ship.
6
Certain rights not created or affected
6 Certain rights not created or affected
The provisions of this Act (other than section 34) do not have effect to create:
(a) a new maritime lien or other charge; or
(b) a cause of action that would not have existed if this Act had not been passed.
7
External Territories
7 External Territories
This Act extends to each external Territory.
8
Act to bind Crown
8 Act to bind Crown
(1) This Act binds the Crown in all its capacities.
(2) This Act does not authorise:
(a) a proceeding to be commenced as an action in rem against a government ship or government property; or
(b) the arrest, detention or sale of a government ship or government property.
(3) Where a proceeding has been commenced as an action in rem against a government ship or government property, the court may, if it is satisfied that the proceeding was so commenced in the reasonable belief that the ship was not a government ship, or the property was not government property:
(a) order that the proceeding be treated as though it were a proceeding commenced as an action in personam on the claim against a person specified as defendant in the order; and
(b) make such consequential orders as are necessary.
(4) In this section:
government means the Commonwealth, a State or the Northern Territory.
government property means cargo or other property that belongs to a government, but does not include cargo or other property that belongs to a trading corporation that is an agency of a government.
government ship means a ship that belongs, or is for the time being demised or sub‑demised, to a government (including such a ship used by or in connection with a part of the Defence Force), but does not include a ship that belongs, or is for the time being demised or sub‑demised, to a trading corporation that is an agency of a government.
Part II
Jurisdiction in Admiralty
Part II—Jurisdiction in Admiralty
9
Admiralty jurisdiction in personam
9 Admiralty jurisdiction in personam
(1) Jurisdiction is conferred on the Federal Court, the Federal Circuit and Family Court of Australia (Division 2) and on the courts of the Territories, and the courts of the States are invested with federal jurisdiction, in respect of proceedings commenced as actions in personam:
(a) on a maritime claim; or
(b) on a claim for damage done to a ship.
(2) Subsection (1) does not confer on a court other than the Federal Court or a Supreme Court of a Territory, or invest a court of a State other than the Supreme Court of a State with, jurisdiction in respect of limitation proceedings.
10
Jurisdiction of superior courts in respect of Admiralty actions in rem
10 Jurisdiction of superior courts in respect of Admiralty actions in rem
Jurisdiction is conferred on the Federal Court and on the Supreme Courts of the Territories, and the Supreme Courts of the States are invested with federal jurisdiction, in respect of proceedings that may, under this Act, be commenced as actions in rem.
11
Jurisdiction of other courts in respect of Admiralty actions in rem
11 Jurisdiction of other courts in respect of Admiralty actions in rem
(1) The Governor‑General may by Proclamation declare a court of a State or of a Territory to be a court to which this section applies.
(2) Subject to any condition or limitation (whether as to locality, subject‑matter or otherwise) specified in the Proclamation, a court of a State to which this section applies is invested with federal jurisdiction, and jurisdiction is conferred on a court of a Territory to which this section applies, in respect of proceedings that may, under this Act, be commenced as actions in rem.
(3) Where a Proclamation has been varied or rescinded, the variation or rescission does not deprive a court of jurisdiction to hear and determine a proceeding that was pending in the court at the time of the variation or rescission.
12
Jurisdiction in associated matters
12 Jurisdiction in associated matters
The jurisdiction that a court has under this Act extends to jurisdiction in respect of a matter of Admiralty and maritime jurisdiction not otherwise within its jurisdiction that is associated with a matter in which the jurisdiction of the court under this Act is invoked.
13
Restriction to Admiralty and maritime jurisdiction
13 Restriction to Admiralty and maritime jurisdiction
This Act does not confer jurisdiction on a court, or invest a court with jurisdiction, in a matter that is not of a kind mentioned in paragraph 76(ii) or (iii) of the Constitution.
Part III
Rights to proceed in Admiralty
Part III—Rights to proceed in Admiralty
14
Admiralty actions in rem to be commenced under this Act
14 Admiralty actions in rem to be commenced under this Act
In a matter of Admiralty or maritime jurisdiction, a proceeding shall not be commenced as an action in rem against a ship or other property except as provided by this Act.
15
Right to proceed in rem on maritime liens etc.
15 Right to proceed in rem on maritime liens etc.
(1) A proceeding on a maritime lien or other charge in respect of a ship or other property subject to the lien or charge may be commenced as an action in rem against the ship or property.
(2) A reference in subsection (1) to a maritime lien includes a reference to a lien for:
(a) salvage;
(b) damage done by a ship;
(c) wages of the master, or of a member of the crew, of a ship; or
(d) master’s disbursements.
16
Right to proceed in rem on proprietary maritime claims
16 Right to proceed in rem on proprietary maritime claims
A proceeding on a proprietary maritime claim concerning a ship or other property may be commenced as an action in rem against the ship or property.
17
Right to proceed in rem on owner’s liabilities
17 Right to proceed in rem on owner’s liabilities
Where, in relation to a general maritime claim concerning a ship or other property, a relevant person:
(a) was, when the cause of action arose, the owner or charterer of, or in possession or control of, the ship or property; and
(b) is, when the proceeding is commenced, the owner of the ship or property;
a proceeding on the claim may be commenced as an action in rem against the ship or property.
18
Right to proceed in rem on demise charterer’s liabilities
18 Right to proceed in rem on demise charterer’s liabilities
Where, in relation to a maritime claim concerning a ship, a relevant person:
(a) was, when the cause of action arose, the owner or charterer, or in possession or control, of the ship; and
(b) is, when the proceeding is commenced, a demise charterer of the ship;
a proceeding on the claim may be commenced as an action in rem against the ship.
19
Right to proceed in rem against surrogate ship
19 Right to proceed in rem against surrogate ship
A proceeding on a general maritime claim concerning a ship may be commenced as an action in rem against some other ship if:
(a) a relevant person in relation to the claim was, when the cause of action arose, the owner or charterer of, or in possession or control of, the first‑mentioned ship; and
(b) that person is, when the proceeding is commenced, the owner of the second‑mentioned ship.
20
Service on and arrest of only one ship
20 Service on and arrest of only one ship
(1) Where service of initiating process in a proceeding commenced as mentioned in section 15, 17, 18 or 19 has been effected on a ship, service of initiating process in the proceeding shall not be effected on any other ship unless the service on the first‑mentioned ship has been set aside or the proceeding, so far as it relates to that ship, has been discontinued, dismissed or struck out.
(2) Where service of initiating process in a proceeding commenced as mentioned in section 15, 17, 18 or 19 has been effected on a ship, service of initiating process in some other proceeding on the same claim commenced as mentioned in any of those sections shall not be effected on any other ship unless the first‑mentioned proceeding has been discontinued, dismissed or struck out.
(3) Where a ship has been arrested in a proceeding commenced as mentioned in section 15, 17, 18 or 19, no other ship shall be arrested in the proceeding unless the first‑mentioned ship:
(a) was invalidly arrested and has been released from arrest; or
(b) was unlawfully removed from the custody of the Marshal and the Marshal has not regained custody of the ship.
(4) Where:
(a) a person has a claim that is both:
(i) a claim on a maritime lien or other charge; and
(ii) a general maritime claim;
in respect of a ship; and
(b) the person has commenced a proceeding under section 19 against a surrogate ship;
subsection (3) does not prevent the arrest of the first‑mentioned ship in a proceeding on the maritime lien or other charge if the amount recovered by the person in the proceeding commenced under section 19 is less than the amount of the claim on the maritime lien or other charge.
21
Re‑arrest
21 Re‑arrest
(1) A ship or other property arrested in a proceeding on a maritime claim may not be re‑arrested in the proceeding in relation to the claim unless the court so orders, whether because default has been made in the performance of a guarantee or undertaking given to procure the release of the ship or property from the earlier arrest or for some other sufficient reason.
(2) An order under subsection (1) may be made subject to such conditions as are just.
22
Service and arrest out of jurisdiction
22 Service and arrest out of jurisdiction
(1) Subject to subsection (4):
(a) initiating process in a proceeding commenced as an action in rem in the Federal Court may be served on a ship or other property; and
(b) a ship or other property may be arrested in such a proceeding;
at any place within Australia, including a place within the limits of the territorial sea of Australia.
(2) Subject to subsection (4), initiating process in a proceeding commenced as an action in rem in a court of a State or a Territory may be served on a ship or other property:
(a) if, at a time when the process was effective for service, the ship or property was within the locality within which the court may exercise jurisdiction—at any place within Australia, including a place within the limits of the territorial sea of Australia; or
(b) in any case—at any place within the State or Territory, including a place within the limits of the territorial sea of Australia that is adjacent to the State or Territory.
(3) Subject to subsection (4), in a proceeding commenced as an action in rem in a court of a State or Territory, a ship or other property may be arrested at any place within Australia, including a place within the limits of the territorial sea of Australia.
(4) Where the arrest of a foreign ship, or of cargo on board a foreign ship, would be inconsistent with a right of innocent passage that is being exercised by the ship, this Act does not authorise the service of process on the ship or the arrest of the ship or cargo.
(5) In this section:
innocent passage has the meaning it has under the United Nations Convention on the Law of the Sea done at Montego Bay on 10 December 1982.
Note: For the Convention on the Law of the Sea see Schedule 1 to the Seas and Submerged Lands Act 1973.
23
Service and Execution of Process Act not to apply
23 Service and Execution of Process Act not to apply
The Service and Execution of Process Act 1992 does not apply to the service of initiating process on, or the arrest of, a ship or other property under this Act.
24
Proceeds
24 Proceeds
Where, but for the sale of a ship or other property under this Act, a proceeding could have been commenced as an action in rem against the ship or property, the proceeding may be commenced as an action in rem against the proceeds of the sale that have been paid into a court under this Act.
25
Limitation of liability under Liability Conventions
25 Limitation of liability under Liability Conventions
(1) A person who apprehends that a claim for compensation under a law (including a law of a State or a Territory) that gives effect to provisions of a Liability Convention may be made against the person by some other person may apply to the Federal Court to determine the question whether the liability of the first‑mentioned person in respect of the claim may be limited under that law.
(2) Subsection (1) does not affect the jurisdiction of any other court.
(3) On an application under subsection (1), the Federal Court may, in accordance with the law referred to in that subsection:
(a) determine whether the applicant’s liability may be so limited and, if it may be so limited, determine the limit of that liability;
(b) order the constitution of a limitation fund for the payment of claims in respect of which the applicant is entitled to limit his or her liability; and
(c) make such orders as are just with respect to the administration and distribution of that fund.
(4) Where a court has jurisdiction under this Act in respect of a proceeding, that jurisdiction extends to entertaining a defence in the proceeding by way of limitation of liability under a law that gives effect to provisions of a Liability Convention.
26
Proceedings under Civil Liability Convention
26 Proceedings under Civil Liability Convention
A proceeding under this Act on a maritime claim referred to in paragraph 4(3)(b) shall not be brought otherwise than in accordance with paragraphs 1 and 3 of Article IX of the Civil Liability Convention, whether or not the proceeding also relates to a maritime claim or to a maritime lien or other charge.
26A
Proceedings in accordance with the Bunker Oil Convention
26A Proceedings in accordance with the Bunker Oil Convention
(1) A proceeding under this Act on a maritime claim referred to in paragraph 4(3)(ba) must not be brought otherwise than in accordance with paragraphs 1 and 2 of Article 9 of the Bunker Oil Convention, whether or not the proceeding also relates to another maritime claim or to a maritime lien or other charge.
(2) In this section:
Bunker Oil Convention has the same meaning as in the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Act 2008.
Part IV
Transfer and remittal of proceedings
Part IV—Transfer and remittal of proceedings
27
Transfer
27 Transfer
(1) Where a proceeding commenced under this Act is pending in the Federal Court, in the Federal Circuit and Family Court of Australia (Division 2), in the Supreme Court of a State or Territory or in a court of a State or Territory exercising jurisdiction under section 11, the court (in this section called the first court) may, at any stage of the proceeding, upon application or on its own motion, by order, transfer the proceeding to some other court that has jurisdiction under this Act with respect to the subject‑matter of the claim (in this section called the second court).
(2) Subsection (1) does not authorise the transfer of a proceeding commenced as an action in rem to a court that does not, apart from the operation of subsection 28(7), have jurisdiction in respect of proceedings so commenced.
(3) Where a proceeding has been so transferred, the second court shall proceed as if:
(a) the proceeding had been commenced in that court;
(b) the same or similar steps in the proceeding had been taken in that court as were taken in the first court; and
(c) the orders and directions made by the first court in the proceeding had been made by the second court.
28
Remittal
28 Remittal
(1) Where a proceeding commenced under this Act as an action in rem against a ship or other property is pending in the Federal Court or in the Supreme Court of a State, the court may, at any stage of the proceeding, upon application or on its own motion, remit the proceeding for hearing to:
(aa) the Federal Circuit and Family Court of Australia (Division 2); or
(a) a court of a State; or
(b) if service of the initiating process was effected on the ship or property in a Territory—a court of that Territory;
being a court that would have had jurisdiction in respect of the proceeding if:
(c) the proceeding had been commenced in that court as an action in personam; and
(d) service of initiating process in that proceeding had been effected within the locality within which that court may exercise jurisdiction.
(2) Where a proceeding commenced under this Act as an action in rem is pending in the Supreme Court of a Territory, the court may, at any stage of the proceeding, upon application or on its own motion, remit the proceeding for hearing to some other court of the Territory that would have had jurisdiction in respect of the proceeding if:
(a) the proceeding had been commenced in that court as an action in personam; and
(b) service of initiating process in that proceeding had been effected in that Territory.
(3) The court from which the proceeding is remitted (in this section called the first court) may give such orders or directions as are appropriate in relation to the further steps to be taken in the proceeding and, subject to any such orders and directions, the court to which the proceeding is remitted (in this section called the second court) may give orders and directions of a similar kind.
(4) Subject to any orders and directions given under subsection (3), the second court shall proceed as if:
(a) the proceeding had been commenced in that court;
(b) the same or similar steps in the proceeding had been taken in the second court as were taken in the first court; and
(c) the orders and directions made by the first court in the proceeding had been made by the second court.
(5) The first court shall give effect to a judgment or order given in the proceeding, being a judgment or order that finally disposes of the proceeding, as though that judgment or order were a judgment or order of that court in the proceeding.
(6) Subsection (5) does not affect:
(a) a right of appeal that a party to the proceeding has; or
(b) the power of a court to stay execution pending an appeal.
(7) The second court is invested with federal jurisdiction, or, if that court is the Federal Circuit and Family Court of Australia (Division 2) or a court of a Territory, jurisdiction is conferred on that court, in respect of the proceeding.
29
Security in relation to stayed or dismissed proceedings
29 Security in relation to stayed or dismissed proceedings
(1) Where:
(a) it appears to the court in which a proceeding commenced under this Act is pending that the proceeding should be stayed or dismissed on the ground that the claim concerned should be determined by arbitration (whether in Australia or elsewhere) or by a court of a foreign country; and
(b) a ship or other property is under arrest in the proceeding;
the court may order that the proceeding be stayed on condition that the ship or property be retained by the court as security for the satisfaction of any award or judgment that may be made in the arbitration or in a proceeding in the court of the foreign country.
(2) Subsection (1) does not limit any other power of the court.
(3) The power of the court to stay or dismiss a proceeding includes power to do so on such conditions as are just, including a condition:
(a) with respect to the institution or prosecution of the arbitration or proceeding in the court of the foreign country; and
(b) that equivalent security be provided for the satisfaction of any award or judgment that may be made in the arbitration or in the proceeding in the court of the foreign country.
(4) Where a court has made an order under subsection (1) or (3), the court may make such interim or supplementary orders as are appropriate in relation to the ship or property for the purpose of preserving:
(a) the ship or property; or
(b) the rights of a party or of a person interested in the ship or property.
(5) Where:
(a) a ship or other property is under arrest in a proceeding;
(b) an award or judgment as mentioned in subsection (1) has been made in favour of a party; and
(c) apart from this section, the award or judgment is enforceable in Australia;
then, in addition to any other proceeding that may be taken by the party to enforce the award or judgment, the party may apply to the court in the stayed proceeding for an appropriate order in relation to the ship or property to give effect to the award or judgment.
30
Power to deal with ship or other property
30 Power to deal with ship or other property
(1) This section applies where:
(a) a proceeding has been transferred or remitted under the preceding provisions of this Part; and
(b) a ship or other property is under arrest in the proceeding.
(2) The court from which the proceeding was transferred or remitted:
(a) may deal with the ship or property as though it were under arrest in a proceeding that had not been so transferred or remitted; and
(b) may make such orders as are necessary or convenient for transferring the custody of the ship or property to the court to which the proceeding has been so transferred or remitted.
(3) Notwithstanding any other provision of this Act, an order made under subsection (2) has effect according to its tenor.
(4) Where a court has made an order under paragraph (2)(b), the court to which the proceeding has been transferred or remitted has the same powers in relation to the ship or property as it has in relation to a ship or other property under arrest in a proceeding commenced in that court.
Part V
Miscellaneous
Part V—Miscellaneous
31
Effect of judgment
31 Effect of judgment
(1) Where judgment is given for the plaintiff in a proceeding on a maritime claim commenced as an action in rem against a ship or other property, the extent to which a defendant in the proceeding who has entered an appearance and is a relevant person in relation to the claim is personally liable on the judgment is not limited by the value of the ship or property.
(2) Where judgment is given for the plaintiff in a proceeding on a maritime claim commenced as an action in rem against a ship or other property, a defendant in the proceeding who has entered an appearance and is not a relevant person in relation to the claim is not personally liable on the judgment for the payment of money in respect of the claim except so far as the judgment is for costs against that defendant.
(3) Subsection (2) does not prevent the sale, under this Act, of a ship or other property that is under arrest in a proceeding.
32
Powers of Federal Court in relation to register
32 Powers of Federal Court in relation to register
In a proceeding in the Federal Court on a proprietary maritime claim, the orders that the court may make include orders of the kind that a court may make under section 59 or 59A of the Shipping Registration Act 1981.
33
Co‑ownership disputes
33 Co‑ownership disputes
In a proceeding on a maritime claim between co‑owners of a ship relating to the possession, ownership, operation or earnings of the ship, the orders that the court may make include:
(a) orders for the settlement of accounts outstanding and unsettled; and
(b) an order directing that the ship, or a share in the ship, be sold.
34
Damages for unjustified arrest etc.
34 Damages for unjustified arrest etc.
(1) Where, in relation to a proceeding commenced under this Act:
(a) a party unreasonably and without good cause:
(i) demands excessive security in relation to the proceeding; or
(ii) obtains the arrest of a ship or other property under this Act; or
(b) a party or other person unreasonably and without good cause fails to give a consent required under this Act for the release from arrest of a ship or other property;
the party or person is liable in damages to a party to the proceeding, or to a person who has an interest in the ship or property, being a party or person who has suffered loss or damage as a direct result.
(2) The jurisdiction of a court in which a proceeding was commenced under this Act extends to determining a claim arising under subsection (1) in relation to the proceeding.
35
Priorities: general maritime claims
35 Priorities: general maritime claims
(1) Where:
(a) a proceeding in respect of a general maritime claim concerning a ship has been commenced under this Act against a surrogate ship; or
(b) in relation to a proceeding commenced under this Act concerning a ship, a surrogate ship has been arrested;
the order in which general maritime claims against both the ships shall be paid out of the proceeds of the sale of the surrogate ship shall be determined as if all the claims were general maritime claims against the surrogate ship.
(2) Subsection (1) applies notwithstanding any other law, including a law of a State or Territory.
36
Statutory powers of detention
36 Statutory powers of detention
(1) This section applies where:
(a) a law other than this Act (including a law of a State or Territory) confers on a person a power to detain a ship in relation to a civil claim; and
(b) a proceeding on the civil claim may be commenced as an action in rem against the ship.
(2) Where the ship is under arrest under this Act, the power to detain the ship shall not be exercised.
(3) The exercise of the power to detain the ship does not prevent the arrest of the ship under this Act.
(4) Where a ship that has been detained under such a power is arrested under this Act, then, by force of this subsection, the detention is suspended for so long as the ship is under arrest.
(5) Where a ship that has been detained, or would, but for subsection (2), be liable to be detained, under such a power is arrested and sold under this Act, the civil claim is, unless the court otherwise directs, payable in priority to any claim against the ship other than the claim of a Marshal for expenses.
37
Limitation periods
37 Limitation periods
(1) A proceeding may be brought under this Act on a maritime claim, or on a claim on a maritime lien or other charge, at any time before the end of:
(a) the limitation period that would have been applicable in relation to the claim if a proceeding on the claim had been brought otherwise than under this Act; or
(b) if no proceeding on the claim could have been so brought—a period of 3 years after the cause of action arose.
(2) Subsection (1) does not apply if a limitation period is fixed in relation to the claim by an Act, an Imperial Act, an Act of a State or an Act or Ordinance of a Territory, including such an Act or Ordinance in its application in a part of Australia.
(3) Where:
(a) but for this subsection, a court would not have power to extend a limitation period in respect of a maritime claim or a claim of a particular kind on a maritime lien or other charge; and
(b) the court has power to extend a limitation period in respect of a claim of the same kind;
then, by force of this subsection, the court has power, exercisable in the same way, and in the same kinds of circumstances, as the power referred to in paragraph (b), to extend the period fixed by subsection (1) in respect of maritime claims, or claims on maritime liens or other charges, of a kind referred to in that subsection.
(4) The absence of the ship or property concerned from the locality in which the court may exercise jurisdiction shall not be taken into account in relation to the exercise of the power conferred by subsection (3).
(5) The law relating to laches does not apply in relation to a claim brought within a period fixed by or under this section.
38
Mode of trial
38 Mode of trial
A proceeding under this Act commenced as an action in rem, a limitation proceeding and a proceeding under this Act that is associated with either shall be tried without a jury.
39
Jurisdictional limits
39 Jurisdictional limits
(1) Subject to any Proclamation made under subsection 11(2), where a court of a State is invested with jurisdiction in relation to a proceeding commenced as an action in rem, or such jurisdiction is conferred on a court of a Territory, by or under this Act, then:
(a) in the case of a court of a State—the court is invested with the jurisdiction within the limits of the jurisdiction of that court as to the amount claimed and as to remedies, but not otherwise; and
(b) in the case of a court of a Territory—the jurisdiction is conferred on the court only so far as the Constitution permits and within the limits of the jurisdiction of that court as to the amount claimed, as to locality and as to remedies, but not otherwise.
(2) Where a court of a State is invested with jurisdiction in relation to a proceeding commenced under section 9 or such jurisdiction is conferred on a court of a Territory, the jurisdiction is invested or conferred within the limits of the jurisdiction of the court concerned and, in the case of a court of a Territory, only so far as the Constitution permits.
(3) Section 15C of the Acts Interpretation Act 1901 does not apply in relation to proceedings to which this section applies.
40
Courts to act in aid of each other
40 Courts to act in aid of each other
All courts having jurisdiction under this Act, the judges of those courts and the officers of or under the control of those courts shall severally act in aid of, and be auxiliary to, each other in all matters arising under this Act.
41
Rules
41 Rules
(1) The Governor‑General may make Rules, not inconsistent with this Act, making provision in relation to the practice and procedure to be followed in courts exercising jurisdiction under this Act and matters incidental to such practice and procedure.
(2) In particular, the Rules may make provision in relation to:
(a) pleading;
(b) parties;
(c) appearance;
(d) the service and execution of process;
(e) bail;
(f) caveats against arrest or release of ships and other property;
(g) the arrest, custody and sale of ships and other property;
(h) the furnishing of security;
(j) the forms to be used;
(k) records and registers and inspections of those records and registers;
(m) limitation proceedings, including:
(i) the parties to those proceedings; and
(ii) the operation of determinations made in those proceedings;
(n) evidence; and
(o) enforcement and satisfaction of judgments of courts in matters under this Act.
(3) The Rules may prescribe penalties for offences against the Rules not exceeding:
(a) if the defendant is a natural person—a fine of $1,000; or
(b) if the defendant is a corporation—a fine of $5,000.
(4) Jurisdiction is conferred on the Federal Court, the Federal Circuit and Family Court of Australia (Division 2) and on the courts of the Territories, and the courts of the States are invested with federal jurisdiction, in respect of matters arising under the Rules.
(5) The Legislation Act 2003 (other than sections 8, 9, 10 and 16 and Part 4 of Chapter 3 of that Act) applies in relation to the Rules:
(a) as if a reference to a legislative instrument (other than in subparagraph 14(1)(a)(ii) and subsection 14(3) of that Act) were a reference to the Rules; and
(b) subject to such further modifications or adaptations of that Act (other than the provisions of Part 2 of Chapter 3 of that Act or any other provisions whose modification or adaptation would affect the operation of that Part) as are prescribed by the regulations for the purposes of this paragraph.
(6) To avoid doubt, the Rules are rules of court.
42
Rules Committee
42 Rules Committee
(1) The Attorney‑General shall constitute a committee consisting of not more than 7 persons to advise the Attorney‑General with respect to the Rules and shall appoint a member of the committee to preside at meetings of the committee.
(2) The members of the committee shall include a Judge of the Supreme Court of a State or Territory and a Judge of the Federal Court.
(3) Subject to the directions, if any, of the Attorney‑General, the procedure of the committee shall be as the committee determines.
43
Regulations
43 Regulations
The Governor‑General may make regulations, not inconsistent with this Act, prescribing all matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Part VI
Repeals and amendments of Imperial legislation
Part VI—Repeals and amendments of Imperial legislation
44
Colonial Courts of Admiralty Act
44 Colonial Courts of Admiralty Act
(1) The Imperial Act known as the Colonial Courts of Admiralty Act, 1890, as amended and in force at the date of commencement of this Act, is repealed so far as it is part of the law of the Commonwealth or of an external Territory.
(2) The repeal effected by subsection (1) does not affect a proceeding under the Colonial Courts of Admiralty Act, 1890 commenced but not finally determined before the commencement of this Act.
45
Repeal of certain Imperial laws
45 Repeal of certain Imperial laws
The Imperial Acts specified in the following Table are repealed to the extent set out in the Table so far as they are part of the law of the Commonwealth or of an external Territory:
Reign and chapter
Citation or description
Extent of repeal
13 Richard II, Statutes I, chapter 5
Jurisdiction of the Admiral and his Deputy
The whole
15 Richard II, chapter 3
Jurisdiction of the Admiral
The whole
17 Edward II, chapter 13
Prerogativa Regis
The paragraph commencing “Also the King shall have Wreck”
2 Henry IV, chapter 11
Statute of 13 Richard II, Statutes 1, chapter 5 as to the Admiral’s Jurisdiction confirmed
The whole
2 William and Mary, Session 2, chapter 2
Admiralty Act, 1690
The whole
46
Merchant Shipping Act
46 Merchant Shipping Act
Sections 449 and 472 of the Imperial Act known as the Merchant Shipping Act, 1894, as amended and in force at the date of commencement of this Act, are repealed so far as they are part of the law of the Commonwealth or of an external Territory.
47
Transitional
47 Transitional
The application of section 8 of the Acts Interpretation Act 1901 extends to an Imperial Act, and a provision of an Imperial Act, repealed by this Part as though it were an Act of the Parliament, or a provision of an Act of the Parliament, repealed by this Part.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part I Preliminary
Part I—Preliminary
1 Short title
1 Short title
This Act may be cited as the Admiralty Act 1988.
2 Commencement
2 Commencement
This Act commences on a day to be fixed by Proclamation.
3 Interpretation
3 Interpretation
(1) In this Act, unless the contrary intention appears:
Australia, when used in a geographical sense, includes each external Territory.
Civil Liability Convention has the same meaning as the Convention has in the Protection of the Sea (Civil Liability) Act 1981.
coastal sea of Australia means:
(a) the territorial sea of Australia; and
(b) the sea on the landward side of the territorial sea of Australia and not within the limits of a State or Territory.
commencement, in relation to a proceeding, has the meaning given by subsection (2).
costs and expenses, in relation to the Marshal, has the meaning given by subsection (5).
entering appearance has the meaning given by subsection (4).
Federal Court means the Federal Court of Australia.
foreign ship means a ship that is not registered, and is not permitted to be registered, under the Shipping Registration Act 1981.
freight includes passage money and hire.
goods, in relation to a ship, has the meaning given by subsection (3).
hovercraft means an air‑cushion vehicle, or a similar vehicle, used wholly or principally in navigation by water.
initiating process includes a third party notice.
inland waters means waters within Australia other than waters of the sea.
inland waterways vessel means a vessel used or intended to be used wholly on inland waters.
Liability Convention means:
(a) the Civil Liability Convention;
(b) the Limitation Convention; or
(c) any other international convention that is in force in relation to Australia and makes provision with respect to the limitation of liability in relation to maritime claims.
in rem
in rem
and
Procedural safeguards are tight. Only one ship may be arrested per claim (s 20), re-arrest is restricted (s 21), and arrest must not interfere with innocent passage of foreign ships (s 22(4)). Limitation proceedings under international conventions are channelled through the Federal Court (s 25), and specific conventions (Civil Liability Convention, Bunker Oil Convention) impose exclusive jurisdictional rules (ss 26 and 26A).
Part IV regulates transfer and remittal between courts (ss 27–28), stays pending arbitration or foreign proceedings (s 29), and the continued arrest powers of the transferring court (s 30). Part V contains miscellaneous but vital provisions: the effect of in rem judgments on personal liability (s 31), powers over the shipping register (s 32), co-ownership remedies including sale (s 33), damages for unjustified arrest (s 34), priorities between claims when a surrogate ship is sold (s 35), interaction with statutory detention powers (s 36), limitation periods (s 37), jury-free trials (s 38), jurisdictional limits (s 39), and a general duty on courts to act in aid of one another (s 40). The Act also repealed obsolete Imperial legislation (Part VI, ss 44–46) and contains transitional savings.
In short, the Act both confers jurisdiction and meticulously regulates its exercise so that maritime commerce can continue while claimants obtain effective security through the res itself.
Who it affects
The legislation casts a wide net across the maritime industry. Shipowners and demise charterers are directly exposed to in rem actions when they are the “relevant person” under ss 17–19. Time charterers and voyage charterers may be relevant persons for claims arising from their management or use of the vessel (s 4(3)(d)), although their liability is usually in personam only. Cargo interests, whether shippers or consignees, rely on the Act to recover for loss or damage to goods (s 4(3)(e)) or to enforce salvage claims (s 4(3)(g)).
Masters and crew members have a statutory maritime lien for wages (s 15(2)(c)) and can proceed in rem under s 4(3)(t). Suppliers of necessaries (bunkers, provisions, stevedoring) obtain a general maritime claim under s 4(3)(m). Insurers and P&I clubs are affected when subrogated claims are brought or when they furnish security to prevent arrest. Port authorities, harbour masters and lighthouse authorities can arrest for dues (s 4(3)(p)–(q)).
Offshore resource companies operating mobile units or fixed structures fall within the expanded definitions of “ship” and “off-shore industry mobile unit”. Banks holding mortgages benefit from the proprietary maritime claim regime (s 4(2)(a)(iii)) and the priority rules. Finally, the Commonwealth, States and Northern Territory are bound (s 8) but enjoy immunity from in rem arrest of government ships and property, subject to a limited power to convert mistaken in rem proceedings into in personam actions.
Foreign shipowners are subject to the Act whenever their vessels enter Australian waters, subject only to the innocent-passage protection in s 22(4). The legislation therefore affects every participant in maritime trade that touches Australian jurisdiction.
Key duties and rights
Rights predominate. Claimants enjoy a statutory right to arrest a ship or surrogate ship in defined circumstances (ss 15–19), thereby obtaining security up to the value of the res. Mortgagees and co-owners have specific remedies including orders for sale (s 33). Limitation of liability under the Civil Liability Convention, Limitation Convention or Bunker Oil Convention is preserved and procedurally facilitated (ss 25–26A).
Courts are granted broad powers: to transfer or remit proceedings (ss 27–28), to order sale of arrested property, to deal with proceeds (s 24), and to make orders relating to the shipping register (s 32). The Marshal’s costs and expenses are protected.
Duties are largely negative. Parties must not demand excessive security or arrest without good cause, on pain of damages under s 34. Arrest of more than one ship is prohibited except in narrow circumstances (s 20). A party obtaining a stay for arbitration or foreign proceedings may be required to provide counter-security (s 29). Courts must respect constitutional limits (s 13) and the jurisdictional ceilings of inferior courts (s 39). Government ships and property cannot be arrested (s 8(2)).
The Act is careful not to create new maritime liens (s 6), preserving the historical categories while providing a statutory framework for their enforcement.
Penalties and enforcement
The Act itself creates few direct criminal penalties. Rule-making power under s 41(3) permits the Rules to prescribe fines not exceeding $1,000 for natural persons or $5,000 for corporations for breaches of practice and procedure. These are civil penalties in substance.
Enforcement is primarily civil. The principal sanction for wrongful arrest is damages under s 34(1), which applies where a party “unreasonably and without good cause” obtains an arrest or demands excessive security. Jurisdiction to hear such counterclaims is expressly conferred (s 34(2)). A claimant who arrests a surrogate ship but later recovers less than the maritime-lien amount may still arrest the wrongdoing ship (s 20(4)).
Where a ship is sold, priorities are regulated. General maritime claims against both the wrongdoing and surrogate vessels are ranked as though all were claims against the surrogate (s 35). Statutory detention powers under other legislation are suspended during arrest but revive on release; if the ship is sold, the civil claim giving rise to detention ranks in priority unless the court orders otherwise (s 36(5)).
Limitation proceedings under s 25 allow a person to constitute a limitation fund and obtain a determination of the limit. Once constituted, other proceedings against the fund are channelled through the limitation action.
How it interacts with other laws
The Act is expressly linked to a constellation of Commonwealth statutes. It adopts definitions from the Protection of the Sea (Civil Liability) Act 1981, the Limitation of Liability for Maritime Claims Act 1989, the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Act 2008, and the Shipping Registration Act 1981. Claims under those statutes are folded into the general maritime claim definition (s 4(3)(b), (ba)).
It repealed the Colonial Courts of Admiralty Act 1890 (Imp) and several other Imperial statutes (ss 44–46), ending the old “invoked” jurisdiction model. The Service and Execution of Process Act 1992 is disapplied to arrests (s 23).
Constitutionally, jurisdiction is confined to matters within s 76(ii) or (iii) of the Constitution (s 13). Federal jurisdiction is conferred or invested in carefully graded ways: superior courts receive full in rem jurisdiction; inferior courts only by Proclamation and subject to monetary and territorial limits (ss 11, 39).
State and Territory laws creating detention powers for port dues or pollution levies interact via s 36. The Act does not disturb limitation periods fixed by other statutes (s 37(2)) but supplies a default three-year period where none exists. It expressly preserves the law of laches from applying within the statutory window (s 37(5)).
International conventions are given paramountcy in their fields: proceedings for Civil Liability Convention and Bunker Oil Convention claims must follow the jurisdictional articles of those conventions (ss 26, 26A).
Recent changes and why
The text supplied reflects amendments up to at least 2008. The most significant addition is s 4(3)(ba) and s 26A, which incorporate claims and jurisdictional rules arising under the Bunker Oil Convention. These changes were driven by Australia’s accession to the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001, which required domestic implementation to allow direct action against shipowners for bunker spills and to channel claims consistently with the Convention’s exclusive jurisdiction rules.
Minor textual updates have aligned references to the Federal Circuit and Family Court of Australia (Division 2) following court restructuring. The Rules-making provisions were updated to reflect the Legislation Act 2003 (s 41(5)), ensuring proper legislative oversight of court rules while preserving their character as rules of court.
These amendments reflect a consistent legislative policy of keeping Australian admiralty law synchronised with evolving international maritime liability regimes, particularly those addressing environmental damage, without disturbing the 1988 architecture.
Court challenges and controversies
Because the Act is procedural and definitional, litigation has concentrated on the boundaries of the statutory language rather than constitutional validity. The meaning of “relevant person” in ss 17–19 has been tested; courts have held that a bare owner who has demised the vessel may still be relevant if the claim arose during the demise. The surrogate-ship provisions (s 19) have generated disputes over whether the “same person” test is satisfied when corporate structures or trusts intervene.
The distinction between proprietary and general maritime claims has importance for maritime liens. Only the four traditional liens listed in s 15(2) survive; attempts to argue that other claims listed in s 4(3) attract liens have been rejected, consistent with s 6.
Section 34 damages claims for wrongful arrest remain comparatively rare but are a potent deterrent. Courts have emphasised that “unreasonable and without good cause” requires more than mere failure; there must be a lack of bona fides or recklessness.
Controversy has also surrounded the interaction with arbitration clauses. Section 29 permits stays but allows the arresting court to retain the res as security, a pragmatic solution that has generally been upheld.
No major High Court constitutional challenge to the Act’s validity has succeeded; the investment of federal jurisdiction in State courts and the in rem procedure have been accepted as within Commonwealth power under the admiralty and maritime jurisdiction head.
Gotchas
Most practitioners instinctively know that a maritime lien travels with the ship, but many miss that the Act deliberately did not create any new liens (s 6). Only the four traditional liens listed in s 15(2) survive; a claim for necessaries or repair costs, for example, is a general maritime claim but does not give a lien unless it qualifies under another head.
The timing requirements in ss 17–19 are unforgiving. For owner liability under s 17 the relevant person must be owner both at the time the cause of action arose and at the time proceedings are commenced. A sale even one day before filing defeats the in rem right. Demise charterer liability under s 18 is slightly more generous but still demands the person be a demise charterer at the time of commencement.
Surrogate-ship arrests under s 19 are limited to general maritime claims; proprietary claims cannot use the surrogate mechanism. Section 20(4) contains a little-known carve-out: if a claimant arrests a surrogate on a mixed lien/general claim and recovers less than the lien amount, the wrongdoing ship may still be arrested for the balance of the lien.
The “coastal sea of Australia” and “inland waters” definitions interact with s 5(3)–(4) to exclude purely inland claims unless a foreign ship is involved. This can trap unwary practitioners whose collision occurred on a river.
Finally, many forget that limitation proceedings under s 25 are exclusive to the Federal Court, yet the defence of limitation may be raised in any court that has jurisdiction over the substantive claim (s 25(4)). The distinction is critical for forum planning.
How to comply
Compliance for shipowners and operators begins with insurance and risk management. Adequate P&I cover for pollution, wreck removal and crew claims is essential because limitation funds and direct-action regimes can expose the vessel quickly. When a casualty occurs, immediate legal advice is required to decide whether to constitute a limitation fund under s 25 or defend in personam.
Operators should maintain clear corporate structures so that ownership and charter arrangements are transparent; opaque structures can still be pierced for the “relevant person” test but increase costs and uncertainty. When entering Australian ports, owners should ensure all port dues, pilotage and towage are paid promptly, as these give rise to arrest rights.
For claimants, the key is speed. Evidence of the claim must be assembled before the target vessel leaves the jurisdiction. Caveats against release should be considered where multiple claimants are expected. Security demands must be reasonable; excessive demands trigger s 34 liability.
Practitioners drafting pleadings must plead the precise paragraph of s 4(3) relied upon and, for in rem actions, identify the relevant person and the timing requirements. When multiple ships are potentially available, the “one-ship” rule in s 20 must be observed; arresting the wrong vessel first can forfeit the right against the preferred one.
All parties must be alive to the interaction with arbitration clauses. If a stay is likely, security should be offered voluntarily to avoid an adverse costs order or s 34 damages. In limitation proceedings, the constitution of the fund must comply with both the Act and the underlying Convention; failure can leave the owner personally exposed beyond the limit.
Regular review of the Admiralty Rules is necessary because they govern the mechanics of arrest, the form of caveats, and the conduct of limitation actions. Finally, because courts are obliged to act in aid of one another (s 40), practitioners appearing in one registry should not hesitate to seek transfer or remittal if the res or witnesses are in another State; the Act is designed to make such procedural steps seamless.
Limitation Convention has the meaning given to the expression Convention by subsection 3(1) of the Limitation of Liability for Maritime Claims Act 1989.
limitation proceeding means a proceeding under:
(a) section 25 of this Act;
(b) section 9 of the Limitation of Liability for Maritime Claims Act 1989; or
(c) section 10 of the Protection of the Sea (Civil Liability) Act 1981.
maritime claim, general maritime claim and proprietary maritime claim have the meanings given by section 4.
master, in relation to a ship, means a person who has command or charge of the ship.
member of the crew, in relation to a ship, means a person employed or engaged in any capacity on board the ship on the business of the ship, other than:
(a) the master of the ship;
(b) a person who has the conduct of the ship as the pilot of the ship; or
(c) a person temporarily employed on the ship in port.
mortgage, in relation to a ship or a share in a ship, includes a hypothecation or pledge of, and a charge on, the ship or share, whether at law or in equity and whether arising under the law in force in a part of Australia or elsewhere.
off‑shore industry fixed structure means a structure (including a pipeline) that:
(a) is fixed to the seabed and is not able to move or be moved as a structure from one place to another; and
(b) is used or intended for use wholly or primarily in, or in any operations or activities associated with or incidental to, exploring or exploiting the mineral and other non‑living resources of:
(i) the continental shelf of Australia; or
(ii) the seabed of the coastal sea of Australia or the subsoil of that seabed.
off‑shore industry mobile unit means:
(a) a vessel, or a structure other than a vessel that is able to float or be floated and to move or be moved as a structure from one place to another, that is used or intended for use wholly or primarily in, or in any operations or activities associated with or incidental to, exploring or exploiting the mineral and other non‑living resources of:
(i) the continental shelf of Australia; or
(ii) the seabed of the coastal sea of Australia or the subsoil of that seabed;
by drilling, or by obtaining substantial quantities of material from, the seabed or its subsoil, with equipment that is on or forms part of the vessel or structure; or
(b) a barge or similar vessel fitted with living quarters for more than 12 persons and used or intended for use wholly or primarily in connection with the construction, maintenance or repair of off‑shore industry fixed structures.
relevant person, in relation to a maritime claim, means a person who would be liable on the claim in a proceeding commenced as an action in personam.
sea includes all waters within the ebb and flow of the tide.
ship means a vessel of any kind used or constructed for use in navigation by water, however it is propelled or moved, and includes:
(a) a barge, lighter or other floating vessel;
(b) a hovercraft;
(c) an off‑shore industry mobile unit; and
(d) a vessel that has sunk or is stranded and the remains of such a vessel;
but does not include:
(e) a seaplane;
(f) an inland waterways vessel; or
(g) a vessel under construction that has not been launched.
surrogate ship has the meaning given by subsection (6).
this Act includes the regulations and the Rules made under this Act.
(2) A reference in this Act to the time when a proceeding is commenced is a reference to the time when the initiating process in relation to the proceeding is filed in, or issued by, a court.
(3) A reference in this Act to goods, in relation to a ship, includes a reference to the baggage and other possessions of a person who is on the ship, being baggage and possessions that are being carried or are to be carried on the ship.
(4) A reference in this Act to the entering of appearance includes a reference to any similar procedure.
(5) A reference in this Act to the costs and expenses of the Marshal includes a reference to the amounts payable to a person acting in accordance with the Rules as a Marshal of a court.
(6) For the purposes of this Act, where:
(a) a proceeding on a maritime claim may be commenced against a ship under a provision of this Act (other than section 19); and
(b) under section 19, a proceeding on the claim may be commenced against some other ship;
the other ship is, in relation to the claim, a surrogate ship.
4 Maritime claims
4 Maritime claims
(1) A reference in this Act to a maritime claim is a reference to a proprietary maritime claim or a general maritime claim.
(2) A reference in this Act to a proprietary maritime claim is a reference to:
(a) a claim relating to:
(i) possession of a ship;
(ii) title to, or ownership of, a ship or a share in a ship;
(iii) a mortgage of a ship or of a share in a ship; or
(iv) a mortgage of a ship’s freight;
(b) a claim between co‑owners of a ship relating to the possession, ownership, operation or earnings of the ship;
(c) a claim for the satisfaction or enforcement of a judgment given by a court (including a court of a foreign country) against a ship or other property in a proceeding in rem in the nature of a proceeding in Admiralty; or
(d) a claim for interest in respect of a claim referred to in paragraph (a), (b) or (c).
(3) A reference in this Act to a general maritime claim is a reference to:
(a) a claim for damage done by a ship (whether by collision or otherwise); or
(b) a claim in respect of the liability of the owner of a ship arising under Part II or IV of the Protection of the Sea (Civil Liability) Act 1981 or under a law of a State or Territory that makes provision as mentioned in subsection 7(1) of that Act; or
(ba) a claim under:
(i) the applied provisions (within the meaning of the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Act 2008); or
(ii) a law of a State or Territory of a kind referred to in subsection 10(1) of that Act; or
(c) a claim for loss of life, or for personal injury, sustained in consequence of a defect in a ship or in the apparel or equipment of a ship; or
(d) a claim (including a claim for loss of life or personal injury) arising out of an act or omission of:
(i) the owner or charterer of a ship;
(ii) a person in possession or control of a ship; or
(iii) a person for whose wrongful acts or omissions the owner, charterer or person in possession or control of a ship is liable;
being an act or omission in the navigation or management of the ship, including an act or omission in connection with:
(iv) the loading of goods on to, or the unloading of goods from, the ship;
(v) the embarkation of persons on to, or the disembarkation of persons from, the ship; and
(vi) the carriage of goods or persons on the ship; or
(e) a claim for loss of, or damage to, goods carried by a ship; or
(f) a claim arising out of an agreement that relates to the carriage of goods or persons by a ship or to the use or hire of a ship, whether by charterparty or otherwise; or
(g) a claim relating to salvage (including life salvage and salvage of cargo or wreck found on land); or
(h) a claim in respect of general average; or
(j) a claim in respect of towage of a ship; or
(k) a claim in respect of pilotage of a ship; or
(m) a claim in respect of goods, materials or services (including stevedoring and lighterage services) supplied or to be supplied to a ship for its operation or maintenance; or
(n) a claim in respect of the construction of a ship (including such a claim relating to a vessel before it was launched); or
(o) a claim in respect of the alteration, repair or equipping of a ship; or
(p) a claim in respect of a liability for port, harbour, canal or light tolls, charges or dues, or tolls, charges or dues of a similar kind, in relation to a ship; or
(q) a claim in respect of a levy in relation to a ship, including a shipping levy imposed by the Protection of the Sea (Shipping Levy) Act 1981, being a levy in relation to which a power to detain the ship is conferred by a law in force in Australia or in a part of Australia; or
(r) a claim by a master, shipper, charterer or agent in respect of disbursements on account of a ship; or
(s) a claim for an insurance premium, or for a mutual insurance call, in relation to a ship; or
(t) a claim by a master, or a member of the crew, of a ship for:
(i) wages; or
(ii) an amount that a person, as employer, is under an obligation to pay to a person as employee, whether the obligation arose out of the contract of employment or by operation of law, including the operation of the law of a foreign country; or
(u) a claim for the enforcement of, or a claim arising out of, an arbitral award (including a foreign award within the meaning of the International Arbitration Act 1974) made in respect of a proprietary maritime claim or a claim referred to in one of the preceding paragraphs; or
(w) a claim for interest in respect of a claim referred to in one of the preceding paragraphs.
5 Application
5 Application
(1) Subject to the succeeding provisions of this section, this Act applies in relation to:
(a) all ships, irrespective of the places of residence or domicile of their owners; and
(b) all maritime claims, wherever arising.
(2) This Act does not apply in relation to a proceeding commenced before the commencement of this Act.
(3) This Act does not apply in relation to a cause of action that arose:
(a) in respect of an inland waterways vessel; or
(b) in respect of the use or intended use of a ship on inland waters.
(4) Paragraph (3)(b) does not have effect in relation to a cause of action if, at the time when the cause of action arose, the ship concerned was a foreign ship.
6 Certain rights not created or affected
6 Certain rights not created or affected
The provisions of this Act (other than section 34) do not have effect to create:
(a) a new maritime lien or other charge; or
(b) a cause of action that would not have existed if this Act had not been passed.
7 External Territories
7 External Territories
This Act extends to each external Territory.
8 Act to bind Crown
8 Act to bind Crown
(1) This Act binds the Crown in all its capacities.
(2) This Act does not authorise:
(a) a proceeding to be commenced as an action in rem against a government ship or government property; or
(b) the arrest, detention or sale of a government ship or government property.
(3) Where a proceeding has been commenced as an action in rem against a government ship or government property, the court may, if it is satisfied that the proceeding was so commenced in the reasonable belief that the ship was not a government ship, or the property was not government property:
(a) order that the proceeding be treated as though it were a proceeding commenced as an action in personam on the claim against a person specified as defendant in the order; and
(b) make such consequential orders as are necessary.
(4) In this section:
government means the Commonwealth, a State or the Northern Territory.
government property means cargo or other property that belongs to a government, but does not include cargo or other property that belongs to a trading corporation that is an agency of a government.
government ship means a ship that belongs, or is for the time being demised or sub‑demised, to a government (including such a ship used by or in connection with a part of the Defence Force), but does not include a ship that belongs, or is for the time being demised or sub‑demised, to a trading corporation that is an agency of a government.
Part II Jurisdiction in Admiralty
Part II—Jurisdiction in Admiralty
9 Admiralty jurisdiction in personam
9 Admiralty jurisdiction in personam
(1) Jurisdiction is conferred on the Federal Court, the Federal Circuit and Family Court of Australia (Division 2) and on the courts of the Territories, and the courts of the States are invested with federal jurisdiction, in respect of proceedings commenced as actions in personam:
(a) on a maritime claim; or
(b) on a claim for damage done to a ship.
(2) Subsection (1) does not confer on a court other than the Federal Court or a Supreme Court of a Territory, or invest a court of a State other than the Supreme Court of a State with, jurisdiction in respect of limitation proceedings.
10 Jurisdiction of superior courts in respect of Admiralty actions in rem
10 Jurisdiction of superior courts in respect of Admiralty actions in rem
Jurisdiction is conferred on the Federal Court and on the Supreme Courts of the Territories, and the Supreme Courts of the States are invested with federal jurisdiction, in respect of proceedings that may, under this Act, be commenced as actions in rem.
11 Jurisdiction of other courts in respect of Admiralty actions in rem
11 Jurisdiction of other courts in respect of Admiralty actions in rem
(1) The Governor‑General may by Proclamation declare a court of a State or of a Territory to be a court to which this section applies.
(2) Subject to any condition or limitation (whether as to locality, subject‑matter or otherwise) specified in the Proclamation, a court of a State to which this section applies is invested with federal jurisdiction, and jurisdiction is conferred on a court of a Territory to which this section applies, in respect of proceedings that may, under this Act, be commenced as actions in rem.
(3) Where a Proclamation has been varied or rescinded, the variation or rescission does not deprive a court of jurisdiction to hear and determine a proceeding that was pending in the court at the time of the variation or rescission.
12 Jurisdiction in associated matters
12 Ju
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