What it does
The Coastal Waters (State Powers) Act 1980 is a short but constitutionally significant Commonwealth statute that forms a central plank of the Offshore Constitutional Settlement between the Commonwealth and the States. At its core the Act does three things: it supplies precise statutory definitions of the “coastal waters of the State” and the “adjacent area”; it deems those coastal waters to lie within the limits of the State for the purpose of State legislative power; and it confers limited additional State legislative capacity in respect of waters lying beyond the coastal waters but still inside the adjacent area.
Section 3(1) supplies the two central definitions. The “adjacent area in respect of the State” is fixed by reference to the boundaries that were described for each State in Schedule 2 to the repealed Petroleum (Submerged Lands) Act 1967 as that Schedule stood immediately before the commencement of the present Act. The “coastal waters of the State” are then carved out of that adjacent area in two limbs. Paragraph (a) takes the part or parts of the territorial sea of Australia that lie inside the adjacent area, but excludes any part that would fall outside a 3-nautical-mile territorial sea under the rule in s.4(2). Paragraph (b) adds any sea on the landward side of the territorial sea that is inside the adjacent area yet outside the limits of the State or a Territory. The combined effect is to give each State a statutory “coastal waters” zone that is notionally treated as though it were inside the State’s borders.
Section 4 anchors the breadth of the territorial sea to the limits “existing from time to time” ascertained consistently with the Seas and Submerged Lands Act 1973, any instruments made under that Act, and any bilateral delimitation agreement with another country. Subsection 4(2) then imposes a statutory cap: if the territorial sea is ever declared wider than 3 nautical miles, the coastal-waters references in the Act continue to exclude any additional belt beyond 3 nautical miles. The legislature therefore deliberately froze the practical operation of the State-power extension at the historic 3-mile limit even while allowing the international territorial sea to expand.