Q & A
Answers to questions we've received from industry about the changes to safety management systems (SMS).
On this page:
- Simplified SMS
- Eligible vessels and activities
- Engine and fuel
- Accommodation and passengers
- Fatigue management
- Drug and alcohol policy
- Operational and emergency procedures
- Master and designated person
- Assembly station
- Vessel stability
- Other
Simplified SMS
Q: Why is the option for a simplified SMS limited to vessels less than 7.5m? Why have vessels slightly larger than 7.5m not been considered?
A: The simplified SMS arrangements have been limited to vessels less than 7.5m to more closely align with the existing eligibility criteria in Division 2 (General) of Exemption 03 – Maritime Safety (Certificates of operation) 2020.
AMSA considers vessels that are less than 7.5m in length and that meet the simplified SMS eligibility criteria to be less complex. As a result, we determined that this vessel length cut-off would be appropriate from a risk perspective and to ensure that the simplified SMS approach delivers acceptable safety outcomes.
We will monitor the performance of the simplified SMS approach, examine whether the eligibility criteria is fit for purpose, and balance safety and burden on industry. We may consider whether larger vessels should be eligible for simplified SMS arrangements at in the future.
Q: I have a vessel that is eligible for a simplified SMS and have an SMS in place that covers the requirements in the current MO504. Will I need to transition to a simplified SMS?
A: If you currently have an SMS in place that complies with the requirements in MO504, you will not be required to transition to a simplified SMS. However, you will still need to implement the new SMS requirements that apply to simplified SMS vessels such as the fatigue risk management and drug and alcohol policy.
Q: As an operator of a vessel that is already in operation and that meets the eligibility criteria to have a simplified SMS, can I start using the simplified requirements now?
A: Vessel operators must continue to comply with the existing requirements until the changes come into effect on 1 June 2025.
You can, however, include the new requirements, such as managing the risks of drug and alcohol use, into your SMS at any time before the changes apply.
Q: Do I need to create a new SMS, or can I continue to use my SMS app?
A: A simplified SMS can be paper-based or app-based.
You can continue using your SMS app if it meets the requirements under Marine Order 504. It should be kept both onboard (if possible) and onshore, with shore-based personnel.
If you opt for an electronic version of the SMS, you must ensure it can always be accessed by the master, crew and others that use the system. You must also ensure you can present the SMS to AMSA or a marine safety inspector when requested.
If your app doesn’t work offline or has connectivity issues, it won’t meet MO504 requirements.
Q: The examples you’re showing look very simple. Can my SMS look like this?
A: Yes. Your SMS can be as simple as you like — provided it captures all the mandatory requirements and any additional information you need to include having done your risk assessment.
This includes:
- developing procedures (for example lifejacket wearing, fatigue, drug and alcohol)
- training for crew (for example inductions, emergency preparedness and refreshers)
- emergency procedures (for example fire, master incapacitated, loss of steering).
Q: I appreciate the SMS but who is to pay for this if not computer literate?
A: SMS have been a mandatory requirement for all domestic commercial vessels since 2013. Simplified SMS has been introduced to assist in reducing the administrative burden on operators, while upholding or improving safety.
You may choose to have a hand-written simplified SMS or consider using an SMS app if you are not confident using computers.
Make sure the SMS is legible and that you have a of it both on board (if possible) and onshore.
Eligible vessels and activities
Q: Do the changes apply to vessels that don’t require a certificate of operation?
A: Certain kinds of vessels and operations are exempt from the requirement to hold a certificate of operation under Exemption 03 (Certificates of operation). However, these vessels must have and comply with an SMS that addresses the operation requirements in MO504.
Q: Are emergency services vessels eligible for a simplified SMS?
A: Yes. Emergency services vessels are eligible for a simplified SMS provided they meet the eligibility criteria.
Q: I run water skiing activities on my 2D/2E vessel, am I eligible for simplified SMS? How does this also apply when I use my vessel for personal use with friends and family?
A: For simplified SMS, we define ‘towage’ as one vessel towing another. It doesn’t include towing people on skis or other recreational equipment.
If your vessel is used for things like water-skiing, you may be eligible for a simplified SMS, if you meet the remaining eligibility criteria.
If you are operating the vessel for personal use and meet the required conditions, you can continue to operate the vessel under Exemption 4 – Marine safety (Recreational use).
Q: Will small trawlers be excluded if they are set up to tow?
A: Vessels are only excluded from a simplified SMS if they are primarily used for towage, like tugboats.
Small trawlers are not considered to be operated primarily for towage for simplified SMS purposes. Even if a vessel is set up for towage, but does not regularly perform towage operations, it can still be eligible for a simplified SMS if it meets the remaining eligibility criteria..
Q: VMR vessels operating under EX40 are required to tow vessels in certain situations. Are they eligible for simplified SMS?
A: A volunteer marine rescue (VMR) vessel is not eligible for a simplified SMS if it is operated primarily for towage. It would need to meet the full requirements for an SMS outlined in MO504.
If the VMR vessel only tows in certain situations and towage is not its main function, it may be eligible for a simplified SMS.
Q: I only operate a small boat (4.5m). I’m generally just out line fishing solo; however, I do take friends and family members (not for payment) just as company or for their interest of fishing. How does this relate to my SMS requirements/obligations?
A: If you’re taking friends and family out, make sure you’re operating under the right conditions.
If your vessel has any certification (such as a certificate of survey, non-survey permit or certificate of operation) check the certificate allows you to carry the number of people you intend to have on board.
Fishing vessels are not allowed to carry passengers.
As part of your SMS, you will need to:
- consider the risks of having additional people on board, including how much experience they have on vessels
- what they are going to do (for example: be part of crew helping to retrieve fishing gear or sorting catch)
- ensure they are inducted onto the vessel, including covering what they need to do if you become incapacitated, your drug and alcohol policy and your lifejacket wear policy.
If you are planning to take them out recreationally, you need to ensure that you meet the conditions outlined in Exemption 4 – Marine Safety (Recreational use).
Engine and fuel
Q: Am I eligible for a simplified SMS if I have an outboard petrol engine?
A: Yes, if you meet the other eligibility criteria.
Vessels with an inboard engine operating on petrol, or another fuel with a flashpoint below 60°C are not eligible for a simplified SMS.
Q: Does an inboard diesel engine exclude a vessel from a simplified SMS?
A: Not necessarily. Vessels with inboard engines that operate on fuel are only excluded if they have a flashpoint below 60°C.
Check the fuel’s safety data sheet to confirm what the flashpoint is.
Accommodation and passengers
Q: What constitutes a 'day passenger’?
A: The term 'day passenger' is defined in the revised MO504. ‘Day passenger’ means a passenger who is not provided with sleeping accommodation.
Q: Is a half cabin classed as a berthed vessel if it has 2 bunks?
A: Yes. Any vessel with any type of berthed accommodation (including a half cabin), whether used or not, is not eligible for a simplified SMS.
These vessels must meet the full SMS requirements under Marine Order 504.
Q: If my vessel has berthed accommodation but I never use it, can I use a simplified SMS?
A: No. Any vessel that has berthed accommodation, whether used or not, is not eligible for a simplified SMS. These vessels must meet the full SMS requirements under Marine Order 504.
Q: We only carry “special personnel” under Exemption 2 for training – six special personnel and one master. Does this mean we have zero day passengers on board and are therefore eligible for the simplified SMS?
A: Yes.
The definition of a passenger does not include:
- the master or crew member
- special personnel
- children under one year old
- a person on board because of the master’s obligation to carry shipwrecked or distressed people or because of unavoidable circumstances.
A day passenger is defined as a passenger who is not provided with sleeping accommodation.
Based on your description, you would carry zero day passengers and may be eligible for a simplified SMS - if you meet the remaining eligibility criteria.
Q: Am I able to reduce my survey capacity with AMSA for personnel carriage and apply for a simplified SMS?
A: Yes. If your Class 2 vessel is authorised to carry more than 4 day passengers, you can apply to AMSA to reduce the maximum numbers specified on your vessel’s permission and become eligible for a simplified SMS.
Apply to vary a vessel certificate or approval (form 566)
Fatigue management
Q: Do I need to consult with the master and crew when developing my fatigue plan?
A: The plan is a component of the vessel’s risk assessment and must be developed and reviewed in consultation with the master and crew. How you engage with masters and crew will depend on a number of factors such as the size of your operation and workforce, multiple vessel locations and the diversity of operations you undertake.
Safe Work Australia have developed a Code of practice: WHS consultation, cooperation and coordination to provide practical guidance on how to effectively consult with workers.
Q: How is fatigue managed when operating with minimum crewing under MO504?
A: Where the master and crew are operating under minimum crewing, they are required to be given at least 10 hours rest in each 24-hour period.
In this situation, ensuring they have at least 10 hours rest would form part of your fatigue risk management plan.
Where you can't provide a minimum of 10 hours rest* under minimum crewing, you would need to undertake an appropriate crewing determination.
*Rest means when a person is free of all duties and functions, except in an emergency.
Q: Do I need to manage the risks of fatigue if I only operate the vessel for a few hours a day?
A: The requirement for the management of fatigue applies to all Class 1, 2 and 3 DCVs, including all operation types and voyage lengths.
The level of detail required will be determined by the vessel’s risk assessment and depend on the nature and complexity of the operation.
If a vessel only operates for a few hours a day, the fatigue risk assessment may be a short, simple plan outlining:
- why the risk of fatigue is low for your operation
- what you currently do to manage the risk of fatigue, for example educate your crew on the need to get restorative sleep at home
- why further controls are not necessary.
The risk of fatigue may exist whether a vessel is operated for a short or long period of time. The requirement to risk-assess fatigue will ensure that a process is in place for all operations to identify and manage the risks.
Q: How are emergency service volunteers supposed to manage their hours of work/rest? We often go to an emergency after our day job and in the evenings.
A: Emergency service volunteer organisations need to consider how best to manage the risks of fatigue through a plan, in the same way as other operators.
It is crucial that volunteers provide accurate information on their current fatigue levels to the vessel owner/shift supervisor.
This could include information on:
- how well they slept the night before
- how long they have been awake
- what they have been doing and for how long (manual/mental work etc)
- their general health and wellbeing.
Vessel owners/shift supervisors should then consider this under their fatigue plan and policies, when determining if a volunteer is fit for tasks/functions.
Q: What does AMSA classify as 'work' and 'rest'?
A: 'Rest' means a period of time when a person is free of all duties and functions, except in the case of an emergency.
The term ‘work’ is not defined in the national law or the model WHS laws. It is reasonable to take the ordinary meaning of the word to mean any work, whether for reward or otherwise.
Q: Why doesn't AMSA align the minimum rest hours in the domestic maritime industry with international standards? Specifically, 10-hour minimum break in each 24-hour period?
A: Currently, MO504 requires masters and crew to have at least 10-hours rest in each 24-hour period, when a vessel is operating with minimum crewing.
In 2024, AMSA consulted with industry on a proposal to expand this rest requirement to all masters and crew working on DCVs, including when a vessel is operating above minimum crewing levels.
The feedback that AMSA received on the proposal was mixed. There was strong support from some sectors and strong opposition from others. Those that opposed said that a prescriptive approach to rest would be impractical for some sectors. They said they needed operational flexibility and the ability to respond quickly to safety concerns.
Fatigue management provides for a broader consideration of risks. In addition to the hours of work and rest, operators must consider:
- environmental factors
- night work
- suitability of the sleeping environment (if relevant).
A fatigue risk management approach is a better outcome for such a diverse industry, rather than a one-size-fits-all approach.
Q: Will AMSA be inspecting our plans and monitoring compliance?
A: The fatigue risk management plan forms part of your SMS. During an inspection you may be asked to provide a copy of your plan for review.
Drug and alcohol policy
Q: I already have a drug and alcohol policy. Do I need to do anything?
A: If you already have a drug and alcohol policy in place to meet your workplace health and safety (WHS) obligations, check that:
- a copy is included in the vessel’s SMS
- you have inducted all your existing crew/staff on the policy
- you are inducting all new crew/staff when they join the vessel/business, and
- you regularly train your crew/staff on the reasons for having the policy.
Q: Will AMSA require a minimum number of drug and alcohol tests to be conducted and recorded each year?
A: You won't be required to conduct and record a minimum number of tests.
Vessel owners and operators have the flexibility to assess the specific risks to their operation. Owners will be able to decide what controls – through testing or otherwise - need to be implemented to ensure a vessel is not being operated while a master or crew member is impaired.
Q: How can I find out about the possible side effects of medication that my crew are taking?
A: If a crew member is prescribed a new medicine, their pharmacist should provide them with a Consumer Medicine Information (CMI) leaflet. For further information, visit the Healthdirect Australia website or consult your local health care professional.
Q: I believe a dry boat should be a basic safety precaution for all vessels. Why didn’t AMSA prohibit alcohol for all crew on board commercial vessels?
A: Vessel owners, in consultation with the master and crew, are best placed to develop a risk-based drug and alcohol policy. This includes determining what is acceptable and unacceptable drug use. This might include having a ‘dry vessel’ policy where no alcohol is permitted. Alternatively, crew may be permitted to have a limited supply of alcohol at the end of their day. Where alcohol is allowed, vessel owners should consider how this will be managed and any impacts it may have on the crew’s ability to undertake duties in an emergency.
Q: If a crew member is on board and takes a drug which affects their judgement, what measures can the master take to confine the crew member?
A: Your drug and alcohol policy should consider how to prevent this occurring. This could include:
- limiting alcohol consumption
- running a dry boat
- having a strict no drugs policy
- other controls.
However, if someone is under the influence of alcohol, non-prescribed medication or possible side-effects of prescribed medication, it is important to consider if they are a danger to themselves or others.
Try to prevent the situation from escalating. Talk to the affected person calmly and keep them in a safe space. If the person’s actions endanger the safety of the vessel or people on the vessel, you can take reasonable steps to ensure the safety of the vessel.
Q: If the master asks me what prescription drugs I’m taking, do I have the right to privacy?
A: You may be required to give information to a vessel’s master or your employer about your use of prescription drugs. This will help them understand whether you are capable of performing relevant duties and enable them to assess safety risks.
This information may also be required to ensure compliance with workplace health and safety (WHS) laws.
You can ask why information regarding prescription drug use is necessary at the time it is requested.
Q: Is the addition of a drug and alcohol policy a new requirement for a vessel’s SMS?
A: As of 1 June 2025, there will be an explicit requirement in Marine Order 504 (MO504) for a drug and alcohol policy to be included in the vessel's SMS. This policy must address how the risks of drug and alcohol use are managed.
While this is a new requirement, many DCV owners and operators may already have a drug and alcohol policy in place to meet their WHS obligations.
Operational and emergency procedures
Q: What do you mean by dangerous goods?
A: For the purposes of Marine Order 504, dangerous goods mean those packaged dangerous goods that fall within the application of clause 4 of the National Code of Practice for the Storage and Handling of Workplace Dangerous Goods (NOHSC: 2017 (2001)).
Q: How does AMSA define cargo?
A: For the purposes of Marine Order 504, cargo of a vessel does not include ballast for the vessel or goods intended for consumption or use on the vessel.
Q: Can a vessel that has never been authorised to carry dangerous goods begin to carry them?
A: The carriage of dangerous goods has implications for a vessel’s certification. Under Marine Order 503 (Certificates of survey) the carriage of dangerous goods is both a modifier (increasing the survey frequency) and a transitional vessel trigger. As such, an existing vessel that starts carrying dangerous goods will become transitional. This will require compliance with the applicable sections of NSCV Section C4 – Fire safety concerning the carriage of dangerous goods.
New vessels will also be subject to the requirements of NSCV C4 for the carriage of dangerous goods.
An application for initial survey will be required prior to the vessel commencing operations with dangerous goods. For details of the dangerous goods carriage requirements refer to NSCV C4.
Q: Does carrying small quantities of ethanol used for scientific purposes prevent us from having a simplified SMS?
A: Not necessarily. Vessels that carry dangerous goods as cargo are not eligible for a simplified SMS. But cargo does not include:
- ballast for the vessel
- goods intended for consumption
- goods intended for use on the vessel.
If the small quantities of ethanol are for use on the vessel (not carried as cargo), the vessel may be eligible for a simplified SMS. It is important to risk assess the storage and use of chemicals and have appropriate controls in place to manage the risks
Q: What if one of the procedures listed in MO504 is not applicable to my vessel or operation?
A: If a procedure for vessel operations listed in MO504 is not applicable to your vessel or operation, you do not need to include the procedure in your vessel’s SMS. For example, if your vessel does not have a confined space, you will not need to include a procedure for confined space entry.
However, in some circumstances, you will find that additional procedures to those listed in MO504 are required to address risks identified by the vessel’s risk assessment.
Master and designated person
Q: Do the requirements for the master’s responsibility and authority statement apply to vessels operating under a simplified SMS?
A: Yes. However, if the owner is also the master there is no requirement to include a responsibility and authority statement in the SMS.
Q: Do the requirements for the designated person responsibility statement apply to vessels operating under a simplified SMS?
A: Yes. However, if the owner is also the designated person there is no requirement to include a responsibility and authority statement in the SMS.
Q: Don’t masters already have authority to make decisions to keep their vessel safe?
A: Yes. This amendment was included to clarify the existing requirements. If your existing master’s responsibility and authority statement doesn’t include reference to their authority to make decisions for the safety of the vessel, the environment and persons on or near the vessel, or that they may require the owner’s assistance to ensure the same, it will need to be updated before 1 June 2025.
Q: Can the designated person and emergency contact be the same person?
A: Yes, they can, however it is important to distinguish between the two functions. Learn more about designated persons.
Q: Can the master be a designated person?
A: There is no set rule about who can hold the function of designated person as long as the function can be effectively managed. This will depend on the size of organisation and the type of operation.
Q: Our designated person responsibility statement doesn’t look anything like the example shown. Do we need to change it?
A: The example shown is a guide to help industry develop their own statement.
If you already have a designated person responsibility statement and it covers the roles and responsibilities that apply to your operation, then you don’t need to change it.
We recommend that you review it to ensure it remains current and includes details of the designated person(s) and their contact information.
Q: Our designated/owner/master is the same person. During the training session, do they need to sign the form to ensure everyone went through the training?
A: The training records that are required under MO504 only need to include:
- a description of any training, induction or familiarisation undertaken
- a description of any emergency drills conducted
- the name and signature of any person participating
- the date the training occurred.
The training records do not need to be individually signed off by the owner, master or the designated person.
Q: What if you’re not eligible for a simplified SMS and the owner, operator and designated person is all the same?
A: If you are not eligible for a simplified SMS, and the owner is also the designated person and master, you will need to include these statements in the vessel’s SMS:
- owner's responsibility and authority statement
- designated person responsibility statement
- master’s responsibility and authority statement.
These statements can be combined into one statement if the requirements for each statement are met.
Assembly station
Q: I have members who are not eligible for a simplified SMS because they have a net reel or petrol inboard engine. They then need to adhere to the passage planning stipulation for a 6m open vessel with no cabin/wheelhouse. This works well if on larger vessels, but isn’t practicable for smaller vessels.
A: When the simplified SMS approach comes into effect on 1 June 2025, we’ll monitor whether the eligibility criteria is fit for purpose, and balances safety and burden on industry.
Q: If our vessel does not qualify for a simplified SMS but it is a small vessel (5.5m), do we have to have an assembly station?
A: If your vessel is not eligible for a simplified SMS, you should include an assembly station based on the vessel’s layout, size, characteristics and risk assessment.
Vessel stability
Q. How do I record the modifications?
A: You can record modifications in a way that suits your operation. This may be in your logbook or somewhere else. Whatever form the record takes, it must be up-to-date and able to be accessed easily by your master and crew, or a marine inspector if they request it.
Q: If the commercial vessel is in survey, and a stability test and assessment has been completed, why would the master assess the vessel’s stability risk other than through normal operations such as net hook-up or large fish catch?
A: The master needs to be aware of operational factors that may affect the vessel’s stability, such as the examples you mentioned. The master should also be aware of any operational limitations in the vessel stability book.
The master should understand what conditions will affect the vessel’s stability, including permanent modifications, that may require the stability to be reassessed by an accredited marine surveyor.
Other
Q: Can the examples be used/copied into an SMS if the example exactly fits my vessel?
A: The examples are for guidance only and are there to assist you with developing your own SMS.
We recommend that you consult your master and crew when developing your SMS and consider all aspects of your operation. Although the examples that we have provided may be applicable to your operation, we suggest using them as a starting point.
Q: Have there been any studies or is there evidence to suggest there has been a decrease in deaths and serious injury in our industry since the implementation of the SMS requirements?
A: SMS requirements have been in place for DCVs for many years. Before MO504, from 2005 to 2018, these requirements were outlined in NSCV Part E – Operations and managed by the states and Northern Territory.
Several studies show that SMS can improve safety outcomes. The combination of a structured SMS, continuous training, assessments, and a safety culture has contributed to reducing serious incidents in the maritime industry over time.
AMSA analyses marine incident data to identify patterns and connections between incidents that take place across Australia. This analysis together with inspections deficiency data helps to inform the development, prioritisation and implementation of safety strategies, and may include changes that are made to SMS requirements, such as the lifejacket risk assessment.
Q: Does each individual vessel need a separate SMS? Or can one SMS cover multiple vessels?
A: An SMS may be for more than vessel. However, the SMS should take into consideration the unique risks, characteristics and layout of each vessel.
Q: How frequently are we required to conduct fire drills?
A: The owner of the vessel must ensure that emergency drills are conducted with a frequency determined by the vessel's risk assessment.
There is no minimum number of drills, however they should be frequent enough to sufficiently test procedures and confirm the competence and ability of the master and crew to respond rapidly and effectively in an emergency.