Shipping Registration Act 1981

The Act has detailed rules about this. Broadly, a ship is 'Australian-owned' if:

• It's entirely owned by Australian citizens, Australian companies, or governments; OR
• A majority of joint owners are Australian nationals; OR
• More than half the ownership shares are held by Australian nationals.

Special Rules for the International Register

To get onto the International Register, ship owners must:

• Have the ship predominantly used for international trade (not coastal/domestic routes).
• Enter into a collective agreement (a formal deal about pay and working conditions) with a bargaining unit representing the seafarers (crew members) who will work on the ship.
• Pass a pre-registration inspection.

Once on the International Register, the ship must at all times have an Australian national or resident as either the master (captain) or chief mate, AND as either the chief engineer or first engineer. This is designed to protect Australian maritime jobs and skills.

Buying, Selling and Mortgaging Ships

• A registered ship (or share in one) must be transferred using a formal bill of sale (a legal document recording the sale).
• All transfers must be recorded with the Registrar within 14 days.
• A ship's ownership is divided into 64 shares for registration purposes — this affects how part-ownership is recorded.
• People claiming an interest in a ship (e.g. a lender) can lodge a caveat (a legal notice blocking further dealings) to protect their interest.
• Trusts are not recorded on the register — only the registered legal owner appears.

Flying the Australian Flag

• Registered ships must fly the Red Ensign (Australia's maritime flag) or the national flag when required.
• Flying the wrong flag, impersonating an Australian ship, or hiding a ship's nationality are serious offences.
• A ship cannot fly two different national flags at once.

How Registration Works in Practice

• The Registrar of Ships (an official within the Australian Maritime Safety Authority, or AMSA) manages the registers.
• The Registrar can grant provisional certificates (temporary registration) when a ship is overseas and needs immediate cover — valid for up to 6 months.
• Temporary passes can be issued in special circumstances for unregistered ships to travel.
• Ships cannot be registered in both an Australian register and a foreign country's register at the same time.

Who Cares About This Law?

• Ship owners and operators — registration determines your legal obligations, trading rights, and flag entitlements.
• Seafarers (crew members) — especially on internationally-registered ships, where collective agreements about working conditions are mandatory.
• Lenders and investors — the registration system records mortgages and security interests in ships.
• Customs and border authorities — Customs officers cannot issue clearance certificates without knowing a ship's nationality.
• Businesses involved in coastal or international trade — registration determines which routes a ship can legally operate on under other laws (like the Coastal Trading Act).