AFMA collects a range of information on which to base its decisions. Much of this information is for the purpose of evaluating the biological and ecological status of fisheries resources. AFMA also uses information about the economics of its fisheries, for example exchange rates, cost of diesel and other input costs.
From July 3, 2017, concession holder must report the prices of all transferred quota and gear SFRs on the transfer form (in GoFish or on the paper form).
AFMA understands the concerns of clients and takes the handling of sensitive information very seriously. To protect commercial and sensitive information, AFMA will only release information as permitted under its legislative and policy framework. AFMA plans to publish SFR price data in aggregated (summary) form only. SFR prices of single trades will not be published. Furthermore, AFMA will not publish SFR price data prior to 1 July 2019.
In the future, AFMA may also collect price information for other concession types. AFMA will notify those affected of any changes prior to them occurring.
How to Report SFR prices
How to guide Leasing SFRs to another client and reporting the trading price
How to guide Transferring SFRs to another client and reporting the trading price
SFR price information FAQs
More information can be found in the FAQ’s below. If you have any enquiries regarding this matter, please contact licensing by phone at 1300 723 621 or by email at email@example.com.
Why is AFMA collecting quota trading prices?
The rationale for the mandatory reporting of quota trading prices is that this information, in combination with other pricing and fishery information, promotes flexibility and economic efficiency in fisheries, helps to improve fisheries management and helps to increase economic benefits to the industry and the Australian community.
AFMA bases its fisheries management decisions on the best available information. Like biological information, economic information is important for fisheries management. Quota price is one piece of economic information among others that will help inform management decisions and pursue AFMA’s objective of maximising the net economic returns for the Australian community from the management of Australian (Commonwealth) fisheries.
- Understanding quota prices (lease and permanent transfer) along with other key costs (fuel) and revenue (fish) prices can assist AFMA to understand the profitability and cost structure differences between fishers who own vs lease quota.
- Information on the value of quota SFRs, a major asset of the fishing industry, can assist in contextualising the importance of the sector.
- Quota prices may also assist AFMA to understand factors that drive behaviour (for example a high lease price that is marginally less than the fish sale price may drive discarding fishers who do not own quota for the species).
- Accurate quota prices will also send signals to policy makers about the economic and bio-ecological health of a fishery and allow, for example, the creation of economic indicators which help to monitor the impacts of management decisions.
Having and publishing (in summary form) quota price information can improve flexibility and efficiency of the quota market and benefit operators. Clear and transparent price signals can make trading easier and provide buyers and sellers more confidence in the market.
AFMA may use the SFR price data, along with other economic data, for a wide range of economic analyses. AFMA will monitor and analyse the long-term movement of lease/transfer quota prices, fuel costs, fish prices and exchange rates, and feed into management decision process. For example:
- The comprehensive SFR data can provide AFMA with a better understanding of the SFR market and underlying economics of fisheries. This can be used to inform fisheries management actions, if and when necessary.
- Long term trends of SFR price data can allow AFMA to identify strengths and weaknesses of the fishery. It is expected that through analyses of these data over time, modelling would anticipate the amount of influence that different fisheries management decisions can have on the quota prices and thus economics of fisheries.
- The lease value indicates expected current profitability and the permanent transfer value indicates expected future profitability in the fishery. Thus the quota price can be an important short and long term performance indicator of:
- Economic and bio-ecological health of a fishery; and
- Value of the fishing industry.
- In the future (after 1 July 2019), interested buyers and sellers of SFRs may be able to use the aggregated price data to make informed decisions. This can lead to fairer prices for SFRs.
AFMA consistently strives to manage Commonwealth fisheries better and achieve its objectives including maximising the net economic returns to the Australian community from the management of Australian fisheries. To this end, in addition to informing fisheries management decisions, collecting and publishing (in aggregate form) SFR transaction price data is designed to make the SFR trading market more transparent, efficient and reduce uncertainty and therefore result in fairer prices for SFRs.
AFMA will achieve in-depth insights into SFR price movements over time and better understand the profitability; the cost structure differences between fishers who own versus those who lease SFRs; and the factors that drive fishers’ behaviour. For example, AFMA has been receiving anecdotal reports that in some cases high quota prices (e.g. for flathead) are driving discarding of the key commercial fish species. AFMA will be able to investigate and verify what prices SFRs are trading for and more clearly understand the drivers of fisher behaviour.
The ABARES Australian fisheries economic indicators reports replaced the former Australian fisheries survey reports. These reports are based on voluntary surveys of selected samples of one or two specific fisheries in each year and usually has a 2 years lag between the time of survey and publication of the results.
All concession holders are now required to report SFR transaction prices of all species on the transfer form (in GoFish or on the paper form) as and when the transactions happen. These SFR prices are real time and comprehensive, unlike ABARES fisheries economic data that are anecdotal, based on sample survey estimates and published with a significant time lag. The reported SFR trade price data collected by AFMA may also assist ABARES in its analyses.
The entity (person/company) selling quota or gear SRFs must enter the price of SFRs that are being leased or permanently transferred.
Accurate information about the prices of leased or permanently transferred quota and gear SFRs.
The price must be entered on the paper or electronic version of the fishery attachment transfer forms.
Yes, you should report the total price paid to you (the entity transferring the SFRs) by the buyer including any brokerage.
Accurate price estimates may be provided where the actual value of individual quota and/or gear SFR type(s) is not known, for example:
- An SFR package is transferred with an agreed price for the package, but not separate prices for each individual type of quota or gear.
- A profit sharing arrangement is entered into and no money is exchanged for the quota (for example, where the SFRs were transferred without payment on the agreement that both parties would share part of the revenue or profit from the sale of fish).
- The SFRs were a gift or loan.
- You swapped SFRs for SFRs of another species (or other products and/or services).
- Other situations where no money is exchanged.
In all of these situations the seller must accurately estimate prices for each individual quota SFR type and record that the prices are estimates in the
appropriate place on the form.