2016–17 

($’000) 

2017–18 

($’000) 

2018-19 

($’000) 

2019-20 

($’000) 

2020-21 

($’000) 

Navigational infrastructure (Marine Navigation Levy) 

  Expenses (X) 

41,134 

31,874 

35,567 

37,164 

41,294 

  Revenue (Y)* 

34,091 

34,651 

36,539 

36,281 

38,146 

  Balance (Y - X) 

(7,043) 

2,777 

972 

(883) 

(3,148) 

Explain material variances: 

In 2016-17, 2019-20, and 2020-21, provisions for removal of lead paint and asbestos content in aids to navigation sites (predominately lighthouses) were increased as further evidence and substantiation of existence become known. The approximate movement in the provision for 2016-17 was $7.1 million, 2019-20 was $4.9 million, and 2020-21 was $6.3 million. We are working through each of the identified sites through a program of scheduled works to remediate sites and reduce this provision each year. 

Environmental marine protection (Protection of the Sea Levy) 

  Expenses (X) 

29,128 

30,219 

62,707 

29,686 

25,311 

  Revenue (Y)* 

34,068 

36,494 

39,234 

48,156 

49,773 

  Balance (Y - X) 

4,940 

6,275 

(23,473) 

18,470 

24,462 

Explain material variances: 

There are natural timing variances associated with environmental emergencies, as clean-up operation costs are incurred immediately from date of an incident, whereas insurance recoveries or legal settlements typically received four to six years afterwards. 

As AMSA has a constructive obligation to meet clean-up costs from ship-sourced marine pollution, in 2018-19 we booked a $27.1 million provision associated with an incident that occurred in June 2018. This clean-up operation finished in June 2020, with actual expenditure of $15.7 million, with excess provision of $11.4 million reversed and recognised as revenue in 2019-20. 

In 2020-21 we received insurance recoveries and legal settlements from incidents that occurred in prior years. Further, there was a reduction in crisis preparedness training expenditure and other National Plan related activities as a result of Covid-19 restrictions. 

Seafarer ship safety under Navigation Act 2012 and other Acts (Regulatory Functions Levy) 

  Expenses (X) 

38,218 

43,142 

35,507 

50,433 

47,343 

  Revenue (Y) 

51,211 

52,488 

53,470 

54,949 

56,724 

  Balance (Y - X) 

12,993 

9,346 

17,963 

4,516 

9,381 

Explain material variances: 

In 2016-17 AMSA undertook a workforce planning exercise, building capability to minimise duplication and increase collaboration across domestic and international areas of responsibility. An internal restructure carried out to support a more flexible and responsive organisation, resulting in a notable reduction in staff costs. 

For 2017-18 to 2018-19 there was a redirection of resources towards the domestic commercial sector due to unexpected level of transitional workloads associated with full-service delivery of the National System, with 2019-20 reverting back to normal services. 

However, in 2020-21 there is a reduction in expenditure predominately related to Covid-19 disruptions and delays for regulatory function activities. We expect this to reverse (increase in expenditure) from 2021-22 as pandemic disruptions largely cease and work-force strategy planning is undertaken to identify the efficient and effective usage of resources in provision of regulatory functions across both domestic and international sector. 

Marine services under Navigation Act 2012 and ship registration 

  Expenses (X) 

10,891 

5,560 

5,995 

10,897 

9,000 

  Revenue (Y) 

4,849 

3,959 

3,813 

2,959 

2,930 

  Balance (Y - X) 

(6,042) 

(1,601) 

(2,182) 

(7,938) 

(6,070) 

Explain material variances: 

An analysis of these under-recoveries indicates that it largely within qualifications for seafarers and pilots, and inspections and surveys on international vessels. We are understanding processes to determine whether costs are efficient or not. Depending on results of this analysis, we will work with stakeholders and government to consider appropriate future arrangements. 

Marine services for National System 

  Expenses (X) 

625 

867 

6,359 

7,256 

7,772 

  Revenue (Y) 

73 

119 

3,360 

2,988 

3,098 

  Balance (Y - X) 

(552) 

(748) 

(2,999) 

(4,268) 

(4,674) 

Explain material variances: 

There are three components driving under-recovery, lower volumes (and revenue) than was originally anticipated, an increase in expected level of service delivery, and temporary inefficiencies as business processes are developed and refined after full-service delivery in 2018-19. The reduction in revenue for 2019-20 is largely the result of bushfire and COVID-19 relief provided to industries. 

2016–17 

($’000) 

2017–18 

($’000) 

2018-19 

($’000) 

2019-20 

($’000) 

2020-21 

($’000) 

  Expenses (X) 

119,996 

111,662 

146,135 

135,436 

130,720 

  Revenue (Y) 

124,292 

127,711 

136,416 

145,333 

150,671 

  Balance (Y - X) 

4,296 

16,049 

(9,719) 

9,897 

19,951 

  Cumulative 

4,296 

20,345 

10,626 

20,523 

40,474