Marine Scalefish Fishery voluntary licence surrender program

The Voluntary Licence Surrender Program has now closed.

The State Government committed $22 million to remove up to 150 of South Australia’s commercial marine scalefish fishing licences from the fishery.

This was the first step in the State Government’s Marine Scalefish Fishery reform process, providing licence holders with an opportunity to voluntarily exit the fishery prior to other reforms taking place.

Before reform Proposals received Surrendered Remaining licences
Line licences 253 11989164
Net licences 54 16747
Total 30713596211

Eligibility to apply for licence surrender

Only licence holders in the Marine Scalefish Fishery and Restricted Marine Scalefish Fishery were eligible to apply.

Licence valuation

Independent economic analysis of the value of licences in the South Australia Marine Scalefish Fishery was undertaken by BDO Econsearch (PDF 1.1 MB) to assist the State Government with this process.

Based on this information, prices for licences surrendered were set at:

  • $140,000 per line licence
  • $180,000 per net licence.

Fishing gear or boats were not included in valuations.

Assessment process and criteria

PIRSA is administering the voluntary licence surrender program to receive individual proposals, check the authenticity of proposals, assess the proposals against the guidelines and established criteria and provide recommendations to the Minister. An independent probity adviser is observing the process.

Proposals are evaluated on whether:

  • they relate to a line licence or a net licence
  • the proposed value amount is less than or equal to the set surrender price.

Assessment of proposals does not consider:

  • catch history associated with the licence holder
  • the area of the fishery in which the licence holder has previously operated
  • any registrations or entitlements other than a gear entitlement that authorises the use of a net
  • whether a licence is amalgamated or unamalgamated
  • any difference between a licence in the Marine Scalefish Fishery or Restricted Marine Scalefish Fishery
  • splitting of licence packages/entitlements
  • existing quota entitlements.

Proposals are assessed as they are received. The panel will make recommendations to the Minister on whether or not to accept a proposal to surrender. PIRSA aims to notify licence holders of the assessment outcome within 6 weeks of submitting a proposal.

Exceptional circumstances

An exceptional circumstances process is commenced on 1 November 2020 to undertake an independent assessment of fishery licence holders’ individual circumstances and assess whether, and if so to what extent, those circumstances have impacted the licence holder’s fishing activity.

Find out more about this process.

Reform project timeline

Outline of the reform process and consultation to date

DateAction
December 2017 Current government gives election commitment to support reform of Marine Scalefish Fishery, including voluntary licence surrender, regional management and individual transferable quota.
May 2018 Marine Fishers Association meets with Minister Whetstone requesting government deliver on election commitment.
November 2018 Commercial Marine Scalefish Fishery Reform Committee (CMSFRC) appointed, chaired by David Hall, to consult industry and develop recommendations to implement reform of Marine Scalefish Fishery.
  • MFA Forum nominated with 10 industry members.
  • CMSFRAC met on 5 occasions.
  • MFA Forum held 4 workshops.
September 2019 CMSFRC release consultation paper for 6-week consultation:
  • 7 regional meetings; 230 attendees.
  • 21 individual submissions.
  • 7 submissions from industry associations.
  • 139 feedback forms submitted.
September 2019 Port meetings on consultation paper conducted in seven locations – more than 230 people participate in these meetings.
31 October 2019 CMSFRAC report submitted to Minister:
  • Proposed 25 recommendations to achieve required reform.
8 May 2020 Minister Whetstone announces $24.5 million investment to support reform of the Marine Scalefish Fishery and releases CMSFRC report, as well as BDO Econsearch independent economic analysis.

Outline of the reform process and future consultation

DateAction
25 May 2020 Voluntary surrender commences.
Mid June 2020 Stage 1 information release:
  • boundaries of proposed management zones
  • indicative Total Allowable Commercial Catch (TACC) for priority fish stocks
  • indicative priority species to be managed under Individual Transferrable Quota (ITQ).
Industry consultation on these proposals begins.
Mid July 2020 Stage 2 information release:
  • the proposed method of allocating catch quota units to licence holders
  • a compliance program to ensure the integrity of the quota management system
  • detail on how other fisheries with access to marine scalefish will be included in the reform process
  • detail on the research program for the management framework
  • potential amendments to regulations, licence conditions and management arrangements
  • tiered management framework tool.
Industry consultation on these proposals begins.
Mid September 2020 Industry consultation ends.
Early October 2020 Final Ministerial decision about Stage 1 and Stage 2 information published:
  • Revised indicative ITQ provided to individual fishers.
1 November 2020 Application for appeals open.
13 November 2020 Offers for the voluntary surrender of licences close.
31 November 2020 Application for appeals close.
1 July 2021 Implementation of Marine Scalefish Fishery reform complete.

Taxation and business advice

Following a request by the Department of Primary Industries and Regions, the Australian Tax Office (ATO) has published a class ruling (PDF 194.5 KB), which sets out the tax consequences of receiving a monetary payment under the Marine Scalefish Fishery Reform: Voluntary Licence Surrender Program.

Licence holders were advised to seek independent advice on taxation and business planning before submitting a surrender offer.

Contact

If you have any questions on the voluntary surrender, please contact:

Email: MSF.Reform@sa.gov.au

Page last reviewed: 09 Aug 2023

 


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