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Commonwealth act
This Act is Australia's way of signing up to a global system that makes sure victims of oil spills from ships can actually get paid compensation — even when the ship's owner can't cover the full cost.
When a ship spills oil and causes damage (think: fouled beaches, dead marine life, ruined fishing businesses), there are two international funds that can step in to pay out compensation:
This Act makes both funds legally real in Australia — meaning they can sue and be sued in Australian courts, just like a company can.
Not taxpayers. Not ship owners. The people who pay are companies that receive large amounts of oil at Australian ports and terminals — think oil refineries and fuel importers. They make annual contributions (like membership fees) to keep both funds topped up. The more oil they receive, the more they contribute.
If they don't pay on time, they rack up late payment penalties (interest charges set by the fund's own rules).
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Direct links to the current provisions in Protection of the Sea (Oil Pollution Compensation Funds) Act 1993.
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View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Anyone who suffers oil pollution damage from a ship — individuals, businesses, governments, fishing communities — can potentially make a claim. Claims are brought in the Federal Court or a Supreme Court of any State or Territory.
AMSA acts as the government's administrator. It:
If you're required to report information and you don't: up to $66,600 fine (300 penalty units). If you deliberately give false information: up to $111,000 fine (500 penalty units).
The Act originally also implemented an older 1971 international fund. That older fund has since been wound up (Australia formally left it), and those provisions have been repealed. The Act now focuses on the 1992 and 2003 systems.
You're unlikely to interact with this law directly unless you: