On this page:
- Latest changes
 - Download exemption 03
 - What this exemption allows you to do
 - Eligibility requirements
 - How to apply
 
Latest changes
An updated version of exemption 03 came into effect on 1 July 2025.  
We reissued the previous version with minor policy and editorial changes to reflect the updated Marine Order 504 (Certificates of Operation - national law) 2024.
You do not need to apply to use this exemption.
Current exemption holders: Review the updated exemption to ensure that you still meet the eligibility criteria.   
Note: A vessel operating under this exemption may also be eligible to operate with a simplified SMS.
All domestic commercial vessels (DCVs) are required to have a certificate of operation (CoO) unless exempt. 
What this exemption allows you to do
Exemption 03 allows eligible vessels to:
- operate without a CoO, or
 - operate with a CoO but without complying with a specific condition of a CoO.
 
Eligibility requirements
Scenario 1: Is my vessel eligible to operate without a CoO?
Disclaimer: This flowchart is a general indicator of eligibility for exemption 03. If you believe you may be eligible, read the full exemption PDF237.19 KB before deciding.
- Image description: Is my vessel eligible to operate without a CoO?
 Class 1 passenger vessels are not eligible for exemption 03.
These vessels may be eligible to operate under exemption 03:
- tenders
 - sailing vessels
 - human-powered vessels
 - dragon boats
 - jet ski/personal watercraft
 - bait-gathering vessels
 - vessels used to teach recreational boating qualifications.
 
Your vessel may also be eligible to operate under exemption 03 if it meets all the following criteria:
- less than 7.5 m long
 - Class 2 or 3 vessel
 - operates in sheltered waters only (D or E)
 - does not carry passengers.
 
Note: More eligibility criteria may apply. Read the exemption document to confirm.
Think you may be eligible? Read exemption 03: schedule 1 PDF237.19 KB to find out which conditions you need to comply with.
Note: If you're eligible to operate without a CoO, you still need a safety management system (SMS). You may be eligible for a simplified SMS.
Scenario 2: Am I eligible to operate my vessel without complying with all CoO conditions?
Certain kinds of vessels that are required to have a CoO may be exempt from a condition on the certificate in some situations. These include:
- heritage vessels that AMSA has been given a vessel management plan
 - personal watercraft in service category 2C, 2D or 2E used in an aerial freestyle device operation.
 
See exemption 03 - schedule 2 for more details.
How to apply
You do not need to apply for approval to use this exemption. 
If operating under this exemption, you just need to:
- comply with conditions in schedule 1 for scenario 1, or
 - comply with conditions in schedule 2 for scenario 2.
 
Related legislation and standards
- Marine Order 504 (Certificates of operation - national law)
 - National Standard for Commercial Vessels
 - Exemption 04 - Marine safety (Recreational use)
 - Exemption 07 - Marine safety (Temporary operations)
 
Refer to superseded and repealed safety exemptions for previous versions of this exemption.