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Consultation: Marine Order 504 Phase 2

Proposed changes

This consultation closed on 28 July 2024. Read the consultation feedback report to find out which proposed changes are going ahead, and what’s not proceeding.

1. Simplifying SMS requirements for smaller, less complex vessels and operations 

Change to existing requirements: Simplify SMS requirements for smaller, less complex DCVs.
Applies to: Eligible Class 2, 3 and 4 vessels.

We’re proposing to provide an alternative simplified set of safety management system (SMS) requirements for smaller, less complex DCVs and operations.  

AMSA has worked closely with industry representatives to ensure that the proposed simplified SMS approach will uphold or improve safety outcomes, align better with operational needs and reduce administrative burden.  

The simplified SMS requirements are made up of 6 key components:   

  1. Administrative requirements  
  2. Risk assessment requirements  
  3. Crewing requirements  
  4. Policies and procedures for vessel operations  
  5. Emergency preparedness  
  6. Maintenance of vessel and equipment  

Eligible vessels

  • Class 2 vessels less than 7.5m in length that carry no more than 4 day passengers  
  • Class 3 vessels less than 7.5m in length  
  • Class 4 vessels less than 7.5m in length  

To be eligible, these vessels must not:  

  • carry dangerous goods
  • have installed a net reel, crane, lifting device or deck load, the use of which is likely to adversely impact the stability or watertight integrity of the vessel
  • have an inboard engine which operates on fuel that has a flashpoint of less than 60 degrees
  • have berthed accommodation  
  • be set up for towage operations
  • be determined by the National Regulator to be unsuitable for simplified SMS arrangements.  

The additional Class 4 requirements set out in Schedule 2 of the MO504 consultation draft will continue to apply for Class 4 vessels that are eligible for a simplified SMS.   

What's proposed to change?

We’ve scaled back SMS requirements to ensure that they are fit for purpose and align with the operations of the eligible vessels.  

We’ve removed SMS requirements that are not considered practical for small, less complex vessels, or amended them to be more appropriate.  

Key changes for eligible vessels:  

  • If the owner is also the designated person, a designated person responsibility statement will not be required in the vessel’s SMS.  
  • If the owner is also the master, a master’s responsibility and authority statement will not be required in the vessel’s SMS.  
  • The risk assessment will no longer need to identify the key daily tasks performed by the master and crew.
  • The mandatory procedures for vessel operations will be reduced.  
  • Owners will no longer be required to identify an assembly station in the emergency plan.
  • The mandatory details in the vessel’s crew list will be reduced.   

1. Administrative requirements

Vessels eligible for a simplified SMS will be required to include the following administrative information in the SMS:

  • vessel details and contact information  
  • owner’s responsibility and authority statement
  • details about the designated person/s (may be the owner)
  • a designated person responsibility statement (not required if the designated person is the owner)
  • master’s responsibility and authority statement (not required if the master is also the owner and not required for Class 4 vessels).

Eligible vessels must also maintain the following documentation with their SMS:  

  • logbook
  • crew list. 

Note: The details required in the vessel’s crew list have been reduced for vessels eligible for a simplified SMS.

A passenger manifest for voyages that are at least 12 hours long will no longer be required for vessels eligible for a simplified SMS.

Eligible vessels must continue to meet the requirements for annual review of each procedure in the SMS. They must also continue to meet requirements for recording revisions to their SMS. However, these requirements have been simplified.  

Class 4 vessels do not need to meet the documentation requirements in Schedule 1. However, they must continue to meet the documentation requirements set out in Schedule 2.  

2. Risk assessment requirements  

The risk assessment requirements in MO504 will continue to apply to vessels eligible for a simplified SMS. This includes the new proposed requirement for a fatigue risk management plan (Class 4 vessels are not required to have a fatigue risk management plan).  

However, eligible vessels will no longer be specifically required to identify:  

  • the key daily tasks to be performed by the master and crew  
  • a person responsible for ensuring that actions needed to eliminate or minimise any risk are carried out. 

In addition to the requirements in Schedule 1, Class 4 vessels must continue to meet the additional risk assessment requirements in Schedule 2. 

It is also important to note that there is no one size fits all approach to a risk assessment. The length and complexity of a risk assessment should be tailored to the operations of each vessel.

3. Crewing requirements  

The crewing requirements outlined in MO504 will continue to apply to Class 1, Class 2 and Class 3 DCVs, including those that are eligible for a simplified SMS.  

4. Procedures for vessel operations

Vessels eligible for a simplified SMS will no longer need to comply with the full list of mandatory procedures for vessel operations in MO504. Instead, eligible vessels will only need to include procedures for:

  • pre-operating checks  
  • vessel access
  • wearing of lifejackets, taking account of the risks identified in the vessel’s risk assessment and the management of lifejackets to ensure that they are readily available
  • providing a safety induction to each passenger as soon as practicable after the passenger boards the vessel. The induction should detail the relevant vessel and emergency procedures, including the wearing of lifejackets (passenger vessels only)
  • passenger monitoring so that the master of the vessel knows the number of passengers on board at any time (passenger vessels only).

A drug and alcohol policy will also need to be recorded in the vessel’s SMS.  

In addition to the requirements in Schedule 1, Class 4 vessels must continue to meet the additional requirements regarding procedures for vessel operations outlined in Schedule 2.

5. Emergency preparedness

The requirements for emergency preparedness will continue to apply to vessels that are eligible for a simplified SMS. This includes the new procedures being proposed for the emergency plan.  

However, these changes will be made:  

  • An assembly station will no longer be required.  
  • A vessel with passengers will no longer be required to provide emergency information in each assembly station, each passenger cabin or other areas frequented by passengers.  

In addition to the requirements in Schedule 1, Class 4 vessels must continue to meet the additional emergency preparedness requirements that apply outlined in Schedule 2.  

6. Maintenance of vessel and equipment  

The requirements for maintenance of vessel and equipment will continue to apply to vessels that are eligible for a simplified SMS. This will include the new proposed amendment to clarify that inspections may be undertaken by an authorised person or suitable person appointed by the owner.  

Download or print and share: Proposed changes: Simplifying SMS requirements for smaller, less complex DCVs PDF558.52 KB

Questions from industry

2. Strengthening fatigue management  

Fatigue risk management plan

New requirement: Include a fatigue risk management plan in a vessel’s SMS.
Applies to: Class 1, 2 and 3 vessels, including those eligible for a simplified SMS. Does not apply to Class 4 vessels.

A fatigue risk management plan outlines how an operation manages the risks associated with master and crew fatigue. It should include a level of detail that matches an operation's risk level, type and complexity.  

AMSA plans to develop guidance on how to meet the fatigue risk management plan requirement.

Questions from industry

3. Enhancing the management of risks from drug and alcohol use    

New requirement: Include a drug and alcohol policy in a vessel’s SMS.
Applies to: All vessels, including those eligible for a simplified SMS.

The amendment in MO504 will allow owners and operators the flexibility to assess the specific risks to their operation.  

A drug and alcohol policy should outline:

  • acceptable and unacceptable drug and alcohol use when working on the vessel
  • drug and alcohol testing procedures
  • procedures for managing a situation where the master or a crew member is determined to be unfit for duty. 

Where relevant, the policy should also align with any state legislation where the vessel is operating.  

In some cases, an operator may already have a drug and alcohol policy in place to meet their WHS obligations. If so, they should keep a copy in the vessel’s SMS.

Questions from industry

4. Ensuring that roles and responsibilities for the safe operation of the vessel are clear 

Designated person's responsibility statement

New requirement: Add a designated person’s responsibility statement.  
Applies to: All vessels, including those eligible for a simplified SMS.  

This statement will set out:

  • who holds the position of designated person
  • their contact information  
  • their roles and responsibilities.  

This will help differentiate operational roles and responsibilities when viewed alongside the existing owner’s and master’s responsibility and authority statement.  

Owners will not be required to include a designated person responsibility statement if:

  • the owner is also the designated person, and
  • their vessel/s meet the eligibility criteria for a simplified SMS.

Master's responsibility and authority statement  

Wording change: Change of terminology to clarify the master’s responsibility and authority.
Applies to: Class 1, 2 and 3 vessels, including those eligible for a simplified SMS. Does not apply to Class 4 vessels.  

Clarify that the master:  

  • has authority to make decisions for the safety of the vessel, the environment and persons on or near the vessel
  • may request the owner’s assistance to ensure the safety of the vessel, the environment and persons on or near the vessel.

There is no policy change to the master’s responsibility and authority statement. This amendment is only to clarify the existing requirements.  

Note: Owners will not be required to include a master’s responsibility and authority statement if:

  • the owner is also the master
  • they meet the eligibility criteria for a simplified SMS. 
5. Updating the assembly station requirements in the vessel’s emergency plan

Change to existing requirement: An alternative assembly station is required if it is reasonable based on the vessel’s layout, characteristics, and risk assessment. 
Applies to: Class 1, 2 and 3 vessels, except those eligible for a simplified SMS (see details below). Does not apply to Class 4 vessels.  

Currently, MO504 requires an emergency plan. This plan must include at least one assembly station, known as a primary assembly station, for everyone on board.    

For vessels that may carry more than 36 persons, the plan must also include an alternative assembly station. This station may be used if the primary assembly station is unusable during an emergency.    

We're proposing that this requirement no longer depend on whether a vessel may carry more than 36 persons. Instead, an alternative assembly station will be required if it is reasonable based on the vessel’s layout, characteristics, and risk assessment.    

Note: Assembly station requirements in MO504 are separate to the assembly station requirements outlined in NSCV C1 – Arrangement, Accommodation and Personal Safety.  

Vessels that meet the eligibility criteria for a simplified SMS will no longer be required to include an assembly station in the vessel's emergency plan. However, owners are still encouraged to include one where it is reasonable based on the vessel’s layout, characteristics and risk assessment. 

6. Aligning procedures for onboard operations and emergency preparedness with risk

Procedures for onboard operations

New requirement: Add procedures for key vessel operations.
Applies to: Class 1, 2 and 3 vessels, with tailored requirements for those eligible for a simplified SMS. Does not apply to Class 4 vessels.

Currently, MO504 requires the owner of the vessel to ensure that procedures for the safety of the vessel, the environment and persons on or near the vessel are developed for key onboard operations. MO504 provides a list of key onboard operations that these procedures must address including pre-operating checks and lifejacket wear.  

We’re proposing to add the following to the list of required procedures:  

  • vessel start up and shutdown    
  • vessel mooring and berthing    
  • vessel bunkering and refuelling  
  • vessel access  
  • passage plan(s)  
  • for a vessel with a confined space – confined space entry  
  • for a vessel that carries cargo – cargo operations including the carriage of dangerous goods as cargo.  

Vessels that are eligible for a simplified SMS (except Class 4 vessels) will need to include a procedure for vessel access, in addition to the existing procedures required under MO504.

Emergency preparedness

New requirement: Add procedures for emergency preparedness.  
Applies to: All vessels, including those eligible for a simplified SMS.

Currently, MO504 requires the owner of the vessel to ensure that an emergency plan is developed and that it includes procedures for responding to emergency situations. MO504 provides a list of emergency situations that must have a procedure in the emergency plan, if relevant to the vessel and its operation.  

We’re proposing that the following emergency situations are added to the list:  

  • loss of propulsion  
  • oil or fuel spill.  
7. Addressing operational risks to vessel stability  

Risk assessment

New requirement: Identify the risks to vessel stability in the risk assessment.  
Applies to: All vessels, except those eligible for a simplified SMS.  

Stability refers to the ability of a vessel to return to its upright position after being heeled over by wind, waves, or other forces. A vessel that does not have enough stability is at risk of capsizing.  

Identifying risks to vessel stability and the factors that reduce stability, will improve safety.  

While this requirement will not explicitly apply to vessels eligible for a simplified SMS, owners of these vessels are encouraged to identify and manage any stability risks through the risk assessment process.  

Record of modifications affecting stability

New requirement: The owner must keep a record of modifications affecting vessel stability with the vessel’s SMS.  
Applies to: Class 1, 2 and 3 vessels, including those eligible for a simplified SMS. Does not apply to Class 4 vessels.

This will ensure that the master and crew are aware of any modifications made to the vessel that may impact stability. It will also help them decide how they use the vessel, and what conditions are safe to operate in.  

The record should include:

  • a description of the modification
  • the date of the modification.   

Questions from industry

8. Amending the certificate of operation renewal criteria to reduce administrative burden   

Change to existing requirement: Allow certificate of operation renewals for selected low-risk changes.
Applies to: All vessels, including those eligible for a simplified SMS.

These changes include:  

  • removal of a vessel  
  • removal of a kind of operation (such as charter, towing and research)  
  • change to the service category which involves lowering the operational area category (for example, from C to D) but not amending the ‘vessel use category’ of the vessel.  

This will allow applicants to apply for a renewal when seeking low-risk changes to the certificate of operation. They won't have to apply for a new certificate.  

The criteria will still restrict the renewal of a certificate of operation for these changes:

  • add a vessel to the certificate
  • change the service category of a vessel by increasing the operational area
  • change the ‘vessel use’ component of the service category
  • change the kind of operation.   
Other proposed changes 

Maintenance of vessel and equipment requirements  

Change to existing requirements: Allow inspections by an authorised representative or suitable person.
Applies to: All vessels, including those eligible for a simplified SMS.

The current MO504 prescribes that the vessel must be inspected sufficiently to determine if the vessel, its machinery, and its equipment comply with the maintenance and operation requirements that apply to it.  

It also requires that the inspection be conducted by the person who has overall general control and management of the vessel. This wording aligns with the national law definition of the owner.  

We are proposing to clarify that inspections can be undertaken by an authorised representative or suitable person appointed by the owner.  

Temporary crewing permit application process

Change to existing requirements: Restrictions on temporary crewing permits for masters.
Applies to: Class 1, 2 and 3 vessels, except those eligible for a simplified SMS. Does not apply to Class 4 vessels.

We are proposing to restrict a temporary crewing permit from being granted for the position of master on DCVs equal to or greater than 24 metres in length.  

This is to make it clear that a vessel equal to or greater than 24 metres cannot operate with a lower qualified master. The higher qualification requirements provide assurance that the master has the appropriate qualifications, skills and experience to command larger and more complex vessels.  

Logbook requirements  

Change to existing requirements: Logbook backup to become mandatory.
Applies to: Class 1, 2 and 3 vessels, including those eligible for a simplified SMS. Does not apply to Class 4 vessels.

The current MO504 allows a logbook to be kept electronically if there is a backup arrangement to prevent information loss.  

We are proposing to make it mandatory for a logbook to have in place a backup arrangement to prevent the loss of information.  

The backup can be kept electronically.

Questions from industry

 

Requirements for certificate of operation  

Wording change: Changes to wording to fix structural issues and improve flow of the marine order.
Applies to: All vessels, including those eligible for a simplified SMS.

These sections of MO504 are changing:  

  • Application for certificate to include declaration of safety management system.
  • Criteria for issue of certificate.
  • Renewal of certificate.
  • Conditions on certificate.

The changes will fix structural issues and improve the flow of the marine order.  

The intent of these sections will remain the same:

  • Application: A declaration must be made that an SMS is in place that complies with the requirements in the order.  
  • Issue and renewal of a certificate of operation: There must be an SMS in place that complies with the requirements in the order.
  • Conditions on certificate: The vessel must be operated in compliance with the requirements of the SMS at all times.    

Variation, suspension and revocation of certificates of operation

Changes to existing requirement: Changes to reasons for suspension, criteria for revocation, and suspension period.
Applies to: All vessels, including those eligible for a simplified SMS.

We've updated the ‘Suspension of certificate’ and ‘Criteria for revocation of certificate’ sections of MO504 to align with MO505.  

We've added these reasons for suspending a certificate of operation:  

  • To investigate whether the certificate holder:  
    • gave information to the National Regulator that was false or misleading  
    • contravened, or is contravening, a condition of the certificate  
  • In addition, where the National Regulator suspends a certificate of operation, the suspension period is being increased from 6 to 24 months.  

We have also added the following criteria for the revocation of a certificate of operation:  

  • the person gave information to the National Regulator that was false or misleading  
  • the person contravened, or is contravening, a condition of the certificate . 

Additional operation requirements for Class 4 vessels

Change to existing requirement: Class 4 vessels to carry onboard procedures if it’s practical.
Applies to: All Class 4 vessels, including those that are eligible for a simplified SMS.

The current MO504 prescribes that a record of the onboard procedures is kept onboard a Class 4 vessel. This should be in a form that is easy to access by any person onboard.  

This is not practical for many types of Class 4 vessels such as kayaks or personal watercraft. It is too difficult to secure the documents and protect them from water damage.  

We are proposing that Class 4 vessels only carry the onboard procedures if it's practical given the size and use of the vessel.  

Change to existing requirement: Owners of Class 4 vessels to determine briefing given to hirers and participants.
Applies to: All Class 4 vessels, including those that are eligible for a simplified SMS.

The current MO504 requires a briefing to be given to each hirer and participant before the person takes control of a Class 4 vessel that includes matters determined in writing by the National Regulator.  

We propose that the briefing include matters determined by the owner of the Class 4 vessel as opposed to being determined by the National Regulator. These matters should take into consideration the vessel’s risk assessment.    

This will enable the DCV owner to decide what needs to be included in the briefing. This is preferable because they are more familiar with the vessel and operation.  

Title of MO504  

Wording change: Change to marine order title for consistency.

The title of MO504 is changing to ‘Marine Order 504 (Certificates of operation – national law) 2024’. We're making this change to align with the other domestic commercial vessel (DCV) marine orders, including Marine Order 503 (Certificates of survey – national law) 2018 and Marine Order 505 (Certificates of competency – national law) 2022.  

Also, MO504 will be remade through the amendment process. This will result in a change from ‘2018’ to ‘2024’.