Individual seafarers could be charged millions of dollars and face imprisonment if they are found liable for polluting Australia's waters, under the country's new rules.

Under a revised penalty system, which was recently reported by the West of England P&I Club, ship masters could be fined AUD 4.2m ($3m) and shipowners and charterers could be hit with AUD 15m penalties for pollution.

The punishing fines are bound to be viewed in the context of the increasing criminalisation of seafarers.

According to Australia’s definition, commonwealth waters impacted by the fines include those more than three nautical miles (5.5 kilometres) from shore. Fines decided by local state and territory legislation will apply to pollution occurring closer to shore.

West of England is stressing that fines can equally apply to charterers and shipowners, and recommends a pollution indemnity clause should be applied to charterparties.

"The discharge of oil in the commonwealth, state [and] territory waters is a strict liability offence for owners and masters, and potentially crew members, and those involved in the operation and maintenance of the ship," the club said in a note to members.

"The commonwealth legislation expressly includes charterers in the list of those strictly liable."