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Commonwealth act
This Act implements an international agreement called the Bunker Oil Convention (formally the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001) into Australian law. It came fully into force on 16 June 2009.
Bunker oil is the fuel oil that ships burn to power their engines — it's thick, heavy, and environmentally damaging if it spills. This Act is about who pays when bunker oil pollutes Australian waters.
If a ship spills bunker oil and it damages Australia's coastline, marine environment, or causes clean-up costs, the ship owner is legally responsible to pay compensation. This applies to damage in Australian waters and the Exclusive Economic Zone (the sea area extending about 200 nautical miles from Australia's coast).
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Direct links to the current provisions in Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Act 2008.
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View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Every ship over 1,000 gross tonnes must carry a valid insurance certificate proving it has enough financial coverage to pay for any oil spill damage. Think of it like compulsory third-party car insurance — but for ships.
Enforcement officers (customs officials or maritime inspectors) can stop and hold a ship at an Australian port if it can't produce a valid insurance certificate. Leaving port while detained carries a massive fine of 2,000 penalty units (currently around $660,000).
People who act reasonably and in good faith to prevent or minimise oil pollution damage cannot be sued for their actions. This encourages rapid response to spills without fear of legal backlash. However, this protection does not extend to:
Foreign countries whose ships cause damage in Australian waters are treated as having agreed to be sued in Australian courts — they can't claim immunity as a foreign sovereign nation. However, you can't seize their property to recover the money.
Unlike most laws, there is no time limit on when the government can prosecute someone for breaking this Act.
If you own or operate a large ship in Australian waters, you must have valid pollution liability insurance and carry proof of it at all times. If you don't, you face massive fines and your ship can be impounded. If your ship spills fuel oil, you will be held financially responsible for the clean-up and any damage caused.