The Tax Laws Amendment (Shipping Reforms) Bill 2012, Shipping Reform (Tax Incentives) Bill 2012, and 3 other related Bills were introduced in the House of Reps on Thur 22.3.2012. The Bills form part of the Government’s Stronger Shipping for a Stronger Economy legislative package. The reforms aim to provide beneficial regulatory and tax arrangements to support the shipping industry.
The proposed tax incentives include:
- Accelerated depreciation of vessels via a cap of 10 years to the effective life of those vessels for owners of Australian registered eligible vessels.
- Roll-over relief from income tax on the sale of a vessel for owners of Australian registered eligible vessels.
- An income tax exemption for Australian operators of Australian registered eligible vessels on qualifying shipping income.
- A refundable tax offset for employers who employ eligible Australian seafarers (also to be known as the “seafarer tax offset”).
- Payments made for the lease of shipping vessels will be exempt from royalty withholding tax.
The 3 other related Bills include the:
- Shipping Registration Amendment (Australian International Shipping Register) Bill 2012,
- Coastal Trading (Revitalising Australian Shipping) Bill 2012, and the
- Coastal Trading (Revitalising Australian Shipping) (Consequential Amendments and Transitional Provisions) Bill 2012.
These Bills propose, among other things, a new international shipping register, a new regulatory framework and licensing system for vessels engaged in coastal trading in Australian waters, and other consequential arrangements.
DATE OF EFFECT: The amendments are proposed to commence on 1 July 2012.
[LTN 56, 22/3]