Fisheries Adjustment Schemes Act 1987

The Act is driven by a limited vocabulary which structures rights and obligations. Key concepts and their statutory mechanics are:

• Fisheries adjustment scheme: Defined as either a voluntary fisheries adjustment scheme (Part 3) or a compulsory fisheries adjustment scheme (Part 4) (s 3(1), 10A, 14A). The word "scheme" is used through Parts 2-4 to describe the package of measures, funding and procedural rules for reducing fishing capacity.

• Authorisation and entitlement: These terms are used as they are defined in the Fish Resources Management Act 1994, by cross‑reference (s 3(2)). The Act contemplates surrender of authorisations or parts of entitlements, or cancellation and reduction (s 10B(1), s 14B(1)). The Act also explicitly treats reductions as including reductions in persons, boats, gear, quantity of fish removed, time or area of fishing (s 3(3)).

• Compensation and market value: For compulsory schemes, affected persons are entitled to "fair compensation"; the value of an authorisation or entitlement being cancelled or reduced is assessed as market value immediately before the public notice under s 14D(1)(a) (s 14G(1)-(3)). For voluntary schemes, compensation is agreed between eligible persons and the Minister under the scheme’s terms and is to be paid from the Account (s 10C(5)-(9)).

• Funding vehicle: The Fisheries Adjustment Schemes Trust Account is an agency special purpose account established under the Financial Management Act 2006 (s 5(1)). The Account receives fees under this Act, borrowing proceeds, transfers from Fisheries Research and Development Account or Recreational Fishing Account (s 5(2)(ba)), donations, investment income and parliamentary appropriations. Each scheme must be maintained as a separate account within the Account (s 5(3)).

• Fees and enforcement: The Governor may make regulations to impose fees on holders of authorisations for the purpose of a scheme; regulations can differentiate among holders (s 8(1), (2A)). Fees can be fixed as specified amounts or by reference to entitlement (s 8(3)). Non‑payment produces debt to the Minister and can be recovered; the CEO may cancel or suspend authorisations where fees are unpaid (s 8(4), (3a)) and evading a fee is an offence (s 16).

• Voluntary vs compulsory procedural differences: Voluntary schemes rely on Ministerial notices and committee of management advice; offers are invited and negotiated with eligible persons (s 10B-10C, s 11). Compulsory schemes require pre‑establishment consultation with the CEO and advisory committees, three months’ public notice, certified post to affected holders and representative bodies, a 60‑day period for written representations and a prohibition on materially altering identified affected authorisations without re‑consultation (s 14B-14D). Selection rules for cancellations are broad, allowing Ministerial discretion including ballot or lottery (s 14E).

• Decision rights and limits: The Minister holds core decisions: establishing schemes (voluntary and compulsory) by Gazette notice (s 10B(1), s 14B(1)), entering agreements for compensation (s 14I), determining compensation where a person does not apply (s 14K), and giving effect to agreements or determinations by cancelling or reducing entitlements and paying compensation (s 14N). The Minister may delegate many functions, but there are specific exceptions which cannot be delegated (s 15B(1)(b)).

• Dispute route: If no agreement is reached on compensation for compulsory schemes within 60 days of an affected person applying, either the person or the Minister may apply to the State Administrative Tribunal to determine compensation (s 14J). Affected persons may also seek review of the Minister’s determination (s 14L). The Minister may nevertheless enter into an agreement while litigation or proceedings are pending (s 14M).

• Ancillary powers: The Minister, CEO or a committee chairman may require information for the purposes of ascertaining liability or entitlement (s 15). The Minister may purchase boats or gear from affected/eligible persons (s 15A), and may buy or re‑sell them, with sale proceeds credited to the Account (s 15A(3)-(4)).

These concepts combine to create a mechanism that transfers value from current authorisation holders (via fees and possible borrowing repaid from fees) and parliamentary appropriations into payments to persons surrendering or losing authorisations, with procedural protections and a tribunal review path for valuation disputes. The Act embeds administrative discretion and financial management through the Account and regulation‑making powers (ss 5-10, 19).

The Act directly and indirectly affects several distinct groups. Identify them precisely.

1. Holders of authorisations (fishers): Those holding authorisations that permit fishing in a fishery targeted by a scheme are the primary subjects. They may be eligible persons for voluntary schemes (entitled to offer surrender) or affected persons under compulsory schemes (whose authorisations may be cancelled or entitlements reduced). The Act authorises the Governor to impose fees on holders of authorisations in order to fund schemes (s 8(1)), and the CEO may cancel or suspend an authorisation for non‑payment (s 8(3a)). Holders who pay fees may receive a pro rata share of surplus fees at scheme conclusion (s 9(b)).

2. Affected persons (compulsory schemes): An "affected person" is defined as a person who holds an authorisation that is to be cancelled or an entitlement that is to be reduced under a compulsory scheme (s 3(1)). Affected persons have statutorily‑defined entitlements: a right to fair compensation, the procedural right to apply to the Minister for compensation within the scheme’s specified period (s 14H), the right to negotiate (s 14I), and a right to seek SAT determination or review of a Ministerial determination concerning compensation (ss 14J, 14L).

3. Eligible persons (voluntary schemes): Those determined in the notice for a voluntary scheme as entitled to offer surrender of authorisations or part entitlements. They may make offers in a prescribed form to a committee, be subject to acceptance, rejection or counter‑offer, and receive agreed compensation paid from the Account (s 10B(2)(c), s 10C(3)-(8)).

4. Minister, CEO and committees: The Minister decides to establish schemes, sets scheme notices, negotiates compensation, determines compensation in some circumstances, and pays compensation (s 10B, s 14B, s 14I, s 14K, s 14N). The CEO has enforcement capacity regarding unpaid fees (s 8(3a)), is consulted before compulsory schemes (s 14C), and may reduce entitlements when surrendered under a voluntary scheme (s 10C(7)). Committees of management assist voluntary schemes, consider offers and advise the Minister (s 11).

5. The Department and public sector resources: Administration costs of schemes (excluding public officer remuneration) are paid from the Account (s 6(1)(b)). The Account is treated as a Department service for financial reporting and audit under the Financial Management Act 2006 and the Auditor General Act 2006 (s 10).

6. Borrowers / creditors and taxpayers: The Minister may borrow from the Treasurer or with Treasurer approval from other persons for scheme purposes (s 7). Borrowings are liabilities of the Account (s 7(3)), so ultimately fees and parliamentary appropriations bear repayment. Parliament may appropriate moneys for schemes (s 5(2)(d), s 6(2) for relevant‑event schemes). Thus costs will be borne either by fee‑payers, the State (Consolidated Account) or the specified fisheries accounts, depending on funding sources.

7. Representative bodies and third parties: The Minister must send certified post notice to representative bodies the Minister considers represent relevant holders when advertising proposed compulsory schemes (s 14D(1)(b)(ii)). Bodies receiving notice may make representations within 60 days (s 14D(3)). Vendors of boats/gear may transact with the Minister under s 15A.

8. Corporations and their officers: Corporate holders of authorisations are subject to the offence rules; officers knowingly party to an offence are also guilty (s 18(1)). The statutory meaning of officer is aligned with the Corporations Act 2001 (s 18(2)).

Who pays: fees imposed under s 8 are payable by holders of authorisations in the fishery to which a scheme applies. Those fees, borrowings and appropriations feed the Account which pays compensation and administration (ss 5-6). Borrowing costs will be charged to the Account (s 7(3)); if borrowings are from the Treasurer the Treasurer sets repayment terms (s 7(1)).

Who decides: the Minister holds core decision rights (establishing schemes, negotiating and determining compensation), assisted by committees for voluntary schemes and subject to consultation requirements for compulsory schemes (s 10B, s 11, s 14B-14D). The CEO has enforcement powers for unpaid fees (s 8(3a)) and is a consultee for compulsory schemes (s 14C).

What behaviour changes: holders of authorisations may decide to participate voluntarily where compensation is attractive; they may face increased fees to fund schemes; some will be subject to compulsory cancellation or reduction and will seek compensation; owner/operators may sell boats or gear to the Minister under s 15A; fee non‑payers risk suspension or cancellation.

The statutory boundaries and procedural protections create a concentrated transfer (payments to surrendering or compulsorily affected persons) financed by a more diffuse base (fee payers, possibly taxpayers or transfers from research/recreational accounts), and assign significant administrative discretion to the Minister and delegated bodies (s 15B).

Duties and rights in the Act are concentrated around procedural steps for scheme establishment, payment obligations, compensation procedures and information obligations.

Ministerial duties and rights:

• Establishment: The Minister may establish voluntary schemes (s 10B(1)) and compulsory schemes (s 14B(1)), but compulsory schemes require a finding that a voluntary scheme is not possible or appropriate (s 14B(2)). Notices must contain prescribed particulars (s 10B(2), s 14B(3)).
• Consultation and notification: For compulsory schemes the Minister must consult the CEO and relevant advisory committees and consider representations made under the public consultation process (s 14C, s 14D(3)).
• Compensation processes: On application by an affected person, the Minister must negotiate compensation and enter agreements if agreed (s 14I). If an affected person does not apply, the Minister must determine the amount (s 14K(1)). The Minister must give effect to agreements and determinations by paying compensation and cancelling or reducing entitlements (s 14N(1)-(2)).
• Financial management: The Minister administers the Account and causes separate scheme accounts to be maintained (s 5(3)) and ensures application of moneys in accordance with s 6.

CEO duties and rights:

• Enforcement for unpaid fees: The CEO may cancel or suspend an authorisation if the holder is liable for a fee and has not paid (s 8(3a)).
• Administrative actions: Under voluntary schemes the CEO may reduce entitlements where part of an entitlement is surrendered (s 10C(7)).

Holders' duties and rights:

• Fee liability: Holders of authorisations in a scheme may be required by regulation to pay fees (s 8(1)). A fee due constitutes a debt to the Minister and can be recovered (s 8(4)).
• Offer/surrender rights: Eligible persons may offer to surrender authorisations or part entitlements under voluntary schemes (s 10C(4)) and may surrender by written notice in accordance with an agreement (s 10C(6)-(7)).
• Application for compensation: Affected persons under compulsory schemes may apply for compensation within the period specified in the scheme notice (s 14H(1)-(2)).
• Valuation right: Compensation for compulsory schemes is to be assessed at market value immediately before the notice (s 14G(2)-(3)). Affected persons can negotiate (s 14I) and apply to SAT where no agreement is reached within 60 days (s 14J).
• Appeal and review: An affected person may apply to the State Administrative Tribunal to review the Minister’s determination (s 14L).

Committee duties and rights:

• For voluntary schemes, committees consider desirability and make recommendations on establishing schemes, consider offers, advise the Minister on accepting/rejecting offers and assist in administration (s 11(2)). Committees also have procedural rules under Schedule 1, including disclosure requirements for pecuniary interests (Sch 1 cl 8).

Information and compliance duties:

• Persons are required to furnish information to the Minister, CEO or chairman when so required by written notice for the purpose of ascertaining liability or entitlement. Non‑compliance or knowingly false information is an offence with a monetary penalty and a daily penalty provision (s 15(1)-(2)).

Purchasing and disposal powers:

• The Minister may agree to purchase fishing boats or gear from affected or eligible persons; purchase price paid out of the Account; Minister may resell and proceeds are returned to the Account (s 15A(1)-(4)).

Regulatory duties:

• The Governor may make regulations to prescribe matters required or convenient for the Act’s operation, including imposing and varying fees (s 19, s 8(5)).

Criminal and civil liabilities:

• Evading a fee is an offence (s 16), and payment of penalties does not relieve liability for fees (s 17). Corporations and officers can be held criminally liable for offences and officers knowingly party to an offence are punishable (s 18).

Rights and duties intersect: the Minister’s discretion to select which authorisations are affected (s 14E(1)) and to select methods (including ballot) (s 14E(2)) interacts with an affected person’s right to compensation assessed as market value (s 14G). Dispute resolution rights are established via SAT jurisdiction and Ministerial determination pathways (ss 14J-14N). Financial duties fall on fee‑payers and on Parliament when appropriations are made (s 5(2)(d), s 6(2)).

The Act creates a mix of administrative enforcement measures and criminal penalties focused on fee compliance, information obligations and corporate accountability.

Fee enforcement:

• A fee imposed under s 8 becomes a debt owed to the Minister and may be sued for as a civil debt (s 8(4)). The CEO has a statutory administrative enforcement instrument: if a holder liable for a fee fails to pay when due, the CEO may cancel the authorisation or suspend it for a specified period (s 8(3a)). This provides immediate operational leverage over authorisation holders who do not pay fees.

Criminal penalties:

• There are specific offences with monetary penalties. A person who intentionally evades or attempts to evade a fee is guilty of an offence with a penalty of $5 000 (s 16). The power to require information is backed by offence provisions: failure to comply with an information notice, or providing information that the person knows to be false or misleading in a material particular, attracts a penalty of $5 000 and a daily penalty of $100 (s 15(2)). Payment of penalties does not relieve liability for the underlying fee (s 17).

Corporate liability:

• Corporate bodies may be prosecuted for offences under the Act, and any officer who was knowingly a party to the offence is also guilty and liable to the same penalty (s 18(1)). The Act adopts the Corporations Act 2001 definition of "officer" for this purpose (s 18(2)), subject to the exclusion of employees not concerned in management. This provision extends enforcement risk to directors and senior managers where corporate entities commit offences.

Administrative obligations and remedies:

• The CEO’s power to cancel or suspend authorisations for non‑payment (s 8(3a)) is an administrative sanction that affects licence rights directly and is separate from the criminal penalty for evasion. The Minister’s ability to reduce entitlements or cancel authorisations under an implemented scheme follows statutory procedures and compensation arrangements and is the mechanism by which the scheme itself takes effect (s 14N(1)).

Audit and financial oversight:

• The Account is an agency special purpose account under the Financial Management Act 2006 and is subject to the Financial Management Act and the Auditor General Act 2006 for financial administration, audit and reporting (s 10). That subjects the Account’s receipts and disbursements, including scheme payments and borrowings, to established public sector financial controls and audit scrutiny.

Enforcement of scheme processes and dispute resolution:

• Discrete disputes concerning compensation amounts for compulsory schemes may proceed to the State Administrative Tribunal where negotiations fail within prescribed timeframes (s 14J). The Tribunal’s determinations are enforceable under the relevant SAT and administrative law regimes (the compilation notes reference relevant transitional SAT provisions). The Minister may nevertheless enter into agreements even when proceedings are on foot (s 14M), which is an administrative flexibility that can affect enforcement dynamics.

Financial and repayment obligations:

• Borrowings for scheme purposes become liabilities of the Account and must be repaid from the Account (s 7(3)). Where borrowings are made from the Treasurer, repayment conditions are set by the Treasurer (s 7(1)); where borrowing is from third parties, prior Treasurer approval of amount and terms is required (s 7(2)). These borrowing arrangements place a statutory obligation on the Account to service debt; if fees and other revenues do not cover repayment, pressure falls on parliamentary appropriation or other funds credited to the Account.

In summary, the Act uses a combination of civil debt recovery, administrative cancellation/suspension of authorisations, criminal penalties for evasion and non‑cooperation, corporate joint liability for offences, and financial oversight under general public finance statutes to enforce compliance and secure payment streams necessary for scheme funding (ss 8, 15-18, 7, 10).

The Act is constructed to operate alongside and cross‑reference several other statutes. The text contains explicit cross‑references and non‑limiting clauses which define interactions.

Fish Resources Management Act 1994:

• The Act explicitly aligns definitions with, and does not limit, the Fish Resources Management Act 1994 (FRMA). Section 3(2) provides that expressions used in this Act have the same meaning as in the FRMA unless a contrary intention appears. Section 3A expressly states that nothing in this Act limits or affects FRMA's operation; it also states that this Act does not require a fisheries adjustment scheme to be established before anything can be done under the FRMA, nor require compensation in respect of all actions under the FRMA, nor otherwise prevent things from being done under the FRMA (s 3A). Thus the two Acts operate in tandem: FRMA provides the substantive regulatory regime for authorisations and entitlements, while this Act provides the mechanism for adjustment of capacity via surrender, cancellation or reduction with compensation.

Financial Management Act 2006 and Auditor General Act 2006:

• The Trust Account established for schemes is an agency special purpose account under the Financial Management Act 2006 (s 5(1)). Section 10 provides that the Financial Management Act and Auditor General Act provisions regulating financial administration, audit and reporting apply to the Account, and the administration of the Account is to be regarded as a Department service for s 52 purposes. This integrates the Account with Western Australia’s public finance framework and with audit oversight.

Fishing and Related Industries Compensation (Marine Reserves) Act 1997:

• The Act references a separate Compensation Act (the Marine Reserves Compensation Act) by name (s 3(1)). Section 6(2) states that where a scheme is established because of a "relevant event" as defined in the Compensation Act, payments or purchases under s 6(1)(a), (aa) or (b) are to be made from moneys appropriated for that subsection. The Act therefore anticipates interaction with compensation regimes created for marine reserve events and directs that such schemes are funded differently (appropriation‑backed) from ordinary schemes.

Compensation and administrative review:

• The State Administrative Tribunal’s jurisdiction is incorporated for compensation determinations and reviews under ss 14J and 14L. The compilation notes indicate transitional provisions from the State Administrative Tribunal Act 2004 and connected legislative amendments that vested jurisdiction in the SAT (compilation notes). Therefore, procedural and review rights under administrative law are engaged.

Corporations Act 2001:

• Section 18(2) imports the Corporations Act definition of "officer" for the purpose of corporate liability, subject to an exclusion for employees not in management. This links corporate criminal liability provisions in this Act with Commonwealth corporate law definitions.

Other regulation and statutory instruments:

• The Governor may make regulations to impose fees (s 8(1)), to vary fees (s 8(5)), and generally to prescribe matters necessary or convenient to give effect to the Act (s 19). Fees and conditions of a scheme will therefore be implemented by regulation, which interacts with the Interpretation Act 1984 (s 8(2A) references s 45 of that Act) and standard administrative law principles.

Public sector remuneration and appointments:

• Committee members' remuneration and allowances are set by the Minister on recommendation of the Public Sector Commissioner (s 13); the committees are subject to Schedule 1 procedural rules, which intersect with the Interpretation Act 1984 regarding bankruptcy and insolvency disqualification (Sch 1 cl 1(b)). The Schedule’s rules interact with public sector governance norms.

In sum, the Act is not standalone; it is explicitly designed to operate as an adjunct to the FRMA, to use the public finance and audit framework for trust account management, to rely on SAT for dispute resolution, and to import corporate definitions and public sector appointment and remuneration processes. The Act’s funding paths also interact with the Fisheries Research and Development Account and Recreational Fishing Account (s 5(2)(ba), s 9(aa)), so transfers between these fisheries‑related accounts and the Trust Account are authorised.

The Act’s compilation table and marginal notes list several amendments and reprints that have altered language, inserted parts and updated references. The following is a source‑grounded chronology of the larger changes reflected in the text provided.

• Original enactment: Fisheries Adjustment Schemes Act 1987 (57 of 1987), assented 5 November 1987; general commencement 1 July 1988 except ss 1-2 (compilation table).

• 1990 amendments: Fisheries Adjustment Schemes Amendment Act 1990 (41 of 1990) made amendments commencing 1 February 1991 (compilation table). Those amendments are cited in multiple marginal notes (e.g. ss 5, 8, 13, 15, 16, 17, 18, 19).

• 1993 financial amendment: Financial Administration Legislation Amendment Act 1993 s 11 (6 of 1993) had a commencement 1 July 1993 (compilation table). This likely affected financial administration provisions; in the current text the Account is an agency special purpose account under the Financial Management Act 2006, reflecting subsequent public finance realignment (s 5(1)).

• 1994 substantive changes: Fisheries Adjustment Schemes Amendment Act 1994 (54 of 1994) inserted Part 3 and Part 4 provisions and added material reflected throughout, with commencement for most provisions 1 October 1995 (compilation table). Notable insertions include s 3A (application to FRMA), Part 3 voluntary schemes (10A-14), and Part 4 compulsory schemes (14A-14N).

• 1996, 1997 and 1998 amendments: Financial Legislation Amendment Act 1996 s 64 (49 of 1996) and the Fishing and Related Industries Compensation (Marine Reserves) Act 1997 s 14 (39 of 1997) were added to the legislative history on their respective dates. The 1998 Statutes (Repeals and Minor Amendments) Act made further technical changes (10 of 1998).

• 2001 change to corporate officer definition: Corporations (Consequential Amendments) Act 2001 s 220 (10 of 2001) amended s 18 to reference the Corporations Act (compilation table).

• 2004 administrative changes: State Administrative Tribunal (Conferral of Jurisdiction) Amendment and Repeal Act 2004 (55 of 2004) reallocated certain jurisdictions to the SAT; this impacts ss 14J, 14L and related references. That amendment commenced 1 January 2005 (compilation table).

• 2006 machinery and financial amendments: Machinery of Government (Miscellaneous Amendments) Act 2006 (28 of 2006) and Financial Legislation Amendment and Repeal Act 2006 (77 of 2006) effected changes relating to departmental services and financial management. Reprint 2 dated 6 April 2007 consolidated those amendments.

• 2009 Fisheries Adjustment Schemes Amendment Act: 38 of 2009 amended multiple sections and commenced 4 December 2009 (compilation table). The textual notes show numerous small amendments (e.g. s 10B amendment, Sch 1 cl 5).

• 2010 public sector and formatting amendments: Standardisation of Formatting Act 2010 (19 of 2010) and Public Sector Reform Act 2010 (39 of 2010) made technical and public sector governance changes; these are reflected in Schedule 1 notes and other marginal annotations.

• Reprints: Reprints consolidating amendments at key dates are provided (Reprint as at 3 May 2002; Reprint 2 as at 6 April 2007; Reprint 3 as at 10 June 2011).

Other notes and uncommenced provisions:

• The compilation table identifies an uncommenced provision from the Aquatic Resources Management Act 2016 (Pt 19 Div 5) assented 29 November 2016 awaiting proclamation (compilation table). The Act’s notes also reference transitional SAT provisions of the State Administrative Tribunal Act 2004 that are relevant to this Act.

The amendments inserted new terms (e.g., the split into voluntary and compulsory scheme parts via the 1994 Act) and updated financial and administrative linkages (e.g., integration with the Financial Management Act framework). The marginal notes within the consolidated text identify the statutory sources of each amendment (e.g., "Section 5 amended: No. 41 of 1990 s. 5; No. 54 of 1994 s. 10; No. 28 of 2006 s. 226; No. 77 of 2006 Sch. 1 cl. 69(2) and (3)"), which should be consulted for precise amendment wording and transitional arrangements.

For practitioners advising on historical entitlements or on the effect of a particular version of the Act at a past date, consult the relevant reprint and the compilation table items listed in the Act’s notes to identify which amendments were in force at that earlier time.

The text provided and its compilation notes do not record any judicial or administrative decisions interpreting this Act. The Act’s own dispute pathways are administrative: where compensation amounts are in dispute for compulsory schemes, either the affected person or the Minister may apply to the State Administrative Tribunal to determine the amount if an agreement has not been entered into within 60 days of the affected person’s application (s 14J). Affected persons may also apply to the State Administrative Tribunal for review of a Ministerial determination (s 14L). The compilation notes reference the State Administrative Tribunal Act 2004 and transitional matters relevant to conferring SAT jurisdiction (Notes 1 under "Notes").

Because the statute itself establishes SAT as the forum for compensation determination and review (s 14J, 14L), most litigation concerning scheme compensation under this Act would be expected to be in the SAT rather than in the Supreme Court, unless a question of jurisdictional error or judicial review of administrative action arises. The compilation notes recommend consulting the State Administrative Tribunal Act 2004 Pt. 5 and related regulations for transitional issues that may affect proceedings. No reported cases are cited in the Act text supplied.

Practitioners should therefore, in preparation for proceedings, review the State Administrative Tribunal Act and relevant regulations noted in the compilation table for procedural contexts and any transitional provisions that governed the vesting of jurisdiction in the SAT. For any interpretation of valuation, procedural fairness, or Ministerial discretion under this Act, look first to SAT decisions in the relevant administrative law period and jurisdiction; those decisions are not listed in the Act text and would need to be located in case databases or tribunal records.

If you require a search of tribunal decisions or judicial review cases interpreting specific provisions (for example, on market valuation timing under s 14G(3), the scope of Ministerial discretion under s 14E(1), or the lawfulness of fee regulations under s 8), the Act’s text establishes where such disputes would be routed (SAT) but does not provide any case law in the current source. Further targeted legal research of SAT determinations, and any consequential judicial review in the courts, is necessary to report litigation history beyond the statutory text.

Several operational and legal pitfalls arise directly from the statute’s wording; list these precisely and tie them to sections.

1. Ministerial discretion over selection of authorisations (s 14E(1)): The Act states authorisations or entitlements "may be selected in such manner as the Minister thinks fit." That is broad discretion. Where not all authorisations are to be cancelled, selection may be by ballot or lottery (s 14E(2)), but the default is unconstrained ministerial choice. Practitioners should note that selection methods, once identified in a public notice, cannot be materially changed without re‑complying with the s 14D consultation requirements (s 14D(4)). Risk: lobbying aimed at selection criteria and political pressure may materially affect who is affected.

2. Timing of valuation reference point (s 14G(3)): Market value for compensation is assessed "immediately before the day on which a notice was published under section 14D(1)(a)". For compulsory schemes, that is the statutory valuation date. Affected persons should understand the valuation will not account for any decline (or increase) in value after notice publication, and that strategic delay or market movement after the notice does not alter the valuation date.

3. Fee imposition by regulation (s 8(1)): Fees to fund schemes require a regulation by the Governor. The Act allows regulations to vary fees by class or exempt specified holders (s 8(2A)). Practitioners should be alert that the regu­lation process, not the scheme notice, is the instrument that sets the immediate fee liabilities; delays or surprises in regulation can produce sudden liabilities. Also, unpaid fees expose holders to operational sanctions (cancellation/suspension by CEO) and criminal exposure for evasion (s 8(3a), s 16).

4. Separate accounts per scheme (s 5(3)) and surplus distribution rules (s 9): Each scheme must be kept as a separate account within the Trust Account. Surpluses are to be returned pro rata according to their source , parliamentary appropriation to Consolidated Account, transfers from Fisheries Research and Development or Recreational Fishing Accounts back to those accounts (s 9(a), (aa)), and fees back to fee‑payers pro rata (s 9(b)). Practitioners advising fee payers should note that their share of any surplus is only distributed at scheme conclusion and only to holders who have paid fees and who still hold authorisations at that time (s 9(b)). That timing and the pro rata rule can produce unexpected distributions.

5. Borrowing liability is charged to the Account (s 7(3)): Borrowings for scheme purposes must be credited to the Account and liabilities charged to it. If revenue streams (fees, appropriations, transfers) are insufficient, the Account remains obliged. Where borrowing is from the Treasurer, repayment and interest terms are determined by the Treasurer; borrowing from third parties requires prior Treasurer approval of terms (s 7(1)-(2)). Practitioners should account for interest and debt servicing as part of scheme cost‑planning (s 8(3AA) allows fees to recover interest and administration costs).

6. CEO power to cancel or suspend authorisations for unpaid fees (s 8(3a)): This serves both as an enforcement mechanism and a potential draconian lever , cancellation or suspension may occur prior to any scheme payment or compensation negotiation, affecting livelihoods and businesses. Ensure due process around notices and opportunity to rectify arrears is observed in practice.

7. Information powers and penalty (s 15): The Minister, CEO or chairman may require information. Non‑compliance carries a significant penalty and a continuing daily penalty (s 15(2)). Careful compliance with information notices is essential; furnishing materially false or misleading information also attracts penalties.

8. Procedural deadlines and SAT timing (ss 14H-14J): An affected person must apply for compensation in the manner, form and within the period specified in the scheme notice (s 14H(2)). If an agreement is not reached within 60 days of that application, either party may apply to the SAT (s 14J(1)). Practitioners should monitor notice timelines, negotiate within statutory windows and prepare for SAT proceedings, including potential delays due to tribunal scheduling.

9. Delegation limitations (s 15B): The Minister may delegate many functions, but certain functions cannot be delegated (s 15B(1)(b)), specifically functions under ss 10B, 11, 14B, 14C, 14H, 14J, 14K(1), or 14M. This means some decisions must be personally reserved for the Minister, which can cause bottlenecks if the Minister’s time is constrained.

10. Committee governance and conflicts (Sch 1 cl 8): Members must disclose direct or indirect pecuniary interests and, unless the Minister otherwise determines, must not be present or participate in deliberations on those matters (Sch 1 cl 8(1), (3)). Practitioners involved in committee membership should ensure timely disclosure and recusal to avoid procedural irregularity.

11. Interaction with FRMA and other compensation regimes (s 3A, s 6(2)): Section 3A clarifies this Act does not limit or affect the FRMA and does not require a scheme to be established under this Act for action under the FRMA. Section 6(2) sets out that where a scheme arises from a "relevant event" under the Compensation Act, payments are to be appropriated. Practitioners should check whether other statutory compensation regimes (e.g., marine reserves compensation) have primacy or differing funding paths.

12. Return of surplus and who receives it (s 9): Surplus fees are distributed to persons who at that time hold authorisations and have paid fees. Those who exited the fishery prior to scheme conclusion and perhaps did not receive full compensation may not benefit from surplus returns.

These "gotchas" are operational and legal friction points that affect timing, remedy, funding and the exposure of both holders and administrators. Each has a clear textual anchor in the Act and should be considered in strategic planning for schemes.

This section sets out practical steps and checklists for each principal actor to comply with the Act, citing the relevant provisions.

For the Minister and Departmental officers:

• Scheme design: Draft a Gazette notice containing the required particulars. For voluntary schemes include objectives, identify fishery, determine eligible persons and describe operational terms and period (s 10B(2)). For compulsory schemes include objectives, fishery identification, reasons for reduction and necessity (s 14B(3)(a)-(c)), identify affected authorisations or parts of entitlements (s 14B(3)(d)) and specify application period for compensation (s 14B(3)(f)).
• Pre‑establishment consultation for compulsory schemes: Conduct consultation with the CEO and relevant advisory committees under FRMA (s 14C(a)). Publish a notice in a State‑circulating newspaper and send certified post copies to each holder and representative bodies at least 3 months before establishing the scheme (s 14D(1)). Allow 60 days for written representations (s 14D(3)). If the scheme notice initially identifies which authorisations are to be cancelled and you later propose to amend which authorisations are affected, repeat the s 14D process unless the modification reduces the class affected (s 14D(4)-(5)).
• Committees for voluntary schemes: Where a voluntary scheme is proposed, establish a committee of management by instrument, set its functions and appoint members for terms not exceeding 2 years, and handle remuneration via the Public Sector Commissioner process (s 11(1), (3), s 13). Ensure committee procedures comply with Schedule 1 including quorums, minutes, and pecuniary interest disclosures (Sch 1 cll 4-5, 8).
• Financial controls: Create separate ledger accounts for each scheme within the Trust Account (s 5(3)). Prepare to fund compensation and administration from the Account, ensuring borrowings are properly authorised and accounted for (s 6(1), s 7).
• Regulation and fees: Draft regulations for the Governor to impose fees under s 8 if fees are required to fund a scheme. Ensure regulations specify amounts, dates for payment and whether different fees apply by holder class or whether exemptions are provided (s 8(2A), (3), (4), (5)). Include features to recover interest and administration costs as permitted (s 8(3AA)).
• Compensation process: On receipt of an affected person’s application for compensation under a compulsory scheme, enter good‑faith negotiations (s 14I). If agreement is not reached within 60 days, make an application to the SAT as appropriate or prepare to respond to an applicant’s SAT application (s 14J). If an affected person does not apply within the notice period, determine compensation and notify in writing as soon as practicable (s 14K(1)-(2)).
• Purchasing boats/gear: If purchasing vessels or gear under s 15A, ensure purchase price is paid from the Account, and maintain records for later disposal with proceeds returned to the Account (s 15A(2)-(4)).
• Delegations and non‑delegable functions: Use s 15B carefully; do not delegate the functions listed as non‑delegable (s 15B(1)(b)). Maintain records of delegations and exercises of delegation.

For holders of authorisations and affected/eligible persons:

• Monitor notices: Track Gazette notices for voluntary or compulsory schemes (s 10B(1), s 14B(1)) and newspaper notices as required under s 10C(3) and s 14D(1). For compulsory schemes, note the valuation reference date is the day before the s 14D public notice (s 14G(3)).
• Application timelines: If affected under a compulsory scheme, apply for compensation within the period, manner and form specified in the scheme notice (s 14H(1)-(2)). Missing the notice period may limit your procedural options.
• Evidence for market valuation: Prepare documentary evidence of market value as at the statutory date (immediately before the s 14D notice) to support negotiation or SAT proceedings (s 14G(2)-(3)).
• Negotiation and SAT: Participate in negotiations under s 14I in good faith. If agreement is not reached within 60 days, be prepared to commence SAT proceedings under s 14J, or to seek review of the Minister’s determination under s 14L if the Minister determines compensation under s 14K.
• Voluntary offers: For voluntary schemes, submit offers in the form approved by the committee within the specified period; expect the committee to recommend acceptance, rejection or counter‑offer and the Minister to correspond in writing (s 10C(3)-(5)). If entering an agreement, surrender authorisation by written notice and obtain confirmation of compensation terms and timing (s 10C(6)-(8)).
• Fee compliance: Where regulations impose fees on holders, ensure timely payment to avoid CEO action (s 8(3a)) and avoid criminal exposure for attempted evasion (s 16). Keep records of payments to establish entitlement to any surplus refund at scheme conclusion (s 9(b)).

For committees and advisers:

• Procedural compliance: Follow Schedule 1 rules: maintain minutes, ensure quorum (3 members) at meetings (Sch 1 cl 4), pass resolutions properly including those without meetings under Sch 1 cl 5, manage leave of absence, and determine procedures subject to the Act (Sch 1 cll 4-7).
• Conflict management: Disclose pecuniary interests promptly and avoid participation where prohibited unless the Minister permits otherwise (Sch 1 cl 8). Maintain records of disclosures and recusal decisions.
• Offer assessment: For voluntary schemes, evaluate offers against scheme objectives, provide advice to the Minister on accepting or rejecting offers, and follow the scheme terms when assisting administration (s 11(2)(b)).

Recordkeeping and audit:

• Maintain comprehensive financial and transaction records for each scheme account in the Trust Account as the Account is subject to the Financial Management Act 2006 and Auditor General Act 2006 (s 10). Ensure adequate audit trails for compensation payments, borrowings, fee receipts and disposals of purchased assets.

Risk management and stakeholder engagement:

• For Ministers and agencies: plan for communicating with representative bodies and holders, manage expectations about timelines and valuation methods, and prepare contingency plans for funding shortfalls (borrowing approval and repayment are statutory obligations, s 7).
• For holders: seek independent valuation and legal advice early, particularly for compulsory schemes where the valuation date is fixed (s 14G(3)).

Regulatory compliance:

• Ensure regulations imposing fees are validly made and published, and that legislative consultation obligations (for compulsory schemes) are met fully before proceeding to establish or materially alter a scheme (s 14D(4)).

Following these steps and anchoring actions to the cited sections (ss 5-11, 14B-14N, 15-16, 19) will reduce legal risks, ensure statutory timeframes are observed and provide an audit trail for scheme decisions and payments.