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Commonwealth act
This law controls who is allowed to transport passengers and cargo between Australian ports by sea — a practice called "coastal trading" (or "cabotage" in shipping circles). Think of it as the rulebook for commercial shipping within Australia's coastline.
The centrepiece of the law is a three-licence system:
General Licence — For vessels registered on the Australian General Shipping Register (i.e., Australian-flagged ships). These get unlimited access to Australian coastal routes. Crews must be Australian citizens or hold valid visas. Valid for up to 5 years.
Temporary Licence — For foreign-flagged vessels that want to fill gaps in capacity. Limited to and specific voyages (minimum 5 voyages per application). There's a consultation process: Australian-licence holders get first right to object and offer to carry the cargo themselves before a temporary licence is approved. This is the main mechanism protecting Australian shipping jobs.
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Direct links to the current provisions in Coastal Trading (Revitalising Australian Shipping) Act 2012.
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View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Emergency Licence — A fast-track licence (decided within 3 business days, maximum 30 days duration) for genuine emergencies where normal capacity is unavailable.
Several vessel types don't need a licence at all:
The Minister can also grant additional exemptions by legislative instrument.
This law is protectionist by design — it deliberately prioritises Australian-flagged vessels with Australian crews. Foreign ships can only carry Australian coastal cargo if no Australian operator can or will do the job. The 2-day notification windows, mandatory consultation with general licence holders, and public disclosure of all temporary licence applications are all designed to give Australian shipping operators every opportunity to claim the work first.
Licence decisions have strict time limits on the Minister — if a decision isn't made in time, the application is automatically granted. This prevents bureaucratic delay from blocking legitimate shipping operations.