The House of Reps Standing Committee on Infrastructure and Communications Committee on Thur 24.5.2012, released its advisory report on the following Bills:
- Coastal Trading (Revitalising Australian Shipping) Bill 2012;
- Coastal Trading (Revitalising Australian Shipping) (Consequential Amendments and Transitional Provisions) Bill 2012;
- Registration Amendment (Australian International Shipping Register) Bill 2012;
- Shipping Reform (Tax Incentives) Bill 2012 – would establish eligibility criteria for access to the tax concessions by defining an eligible company and an eligible vessel; and
- Tax Laws Amendment (Shipping Reform) Bill 2012 – would provide tax incentives such as an income tax exemption for shop operators, accelerated depreciation of vessels via a cap of 10 years to the effective life of those vessels, and roll-over relief from income tax on the sale of a vessel.
The Committee majority recommended the House pass the Bills, while a dissenting report by Coalition committee members said the Bills should not be passed as the proposed new regulatory regime was “deeply flawed” and would significantly increase the cost to users of coastal shipping.
Although the Bills are still in the House of Reps, they have also been referred to the Senate Economics Legislation Committee for report on 19 June 2012.
[LTN 99, 24/5]
Coastal Shipping Bills to be amended
It is understood the Government intends to make amendments to the package of Shipping Reform Bills that, among other things, propose to provide certain tax incentives for the Australian shipping industry eg accelerated depreciation, roll-over relief, an income tax exemption. The Bills are: Tax Laws Amendment (Shipping Reforms) Bill 2012; Shipping Reform (Tax Incentives) Bill 2012; Shipping Registration Amendment (Australian International Shipping Register) Bill 2012; Coastal Trading (Revitalising Australian Shipping) Bill 2012; Coastal Trading (Revitalising Australian Shipping) (Consequential Amendments and Transitional Provisions) Bill 2012.
It is not at this stage known what amendments are proposed or which Bills will be amended.
[LTN 102, 29/5]