The Government today announced sweeping changes to Australian
shipping policy designed to stimulate Australian shipping. If
re-elected the government will introduce
A tonnage tax regime that will reduce the impact of income tax
on Australian flagged vessels.
Accelerated depreciation allowances for vessels that are
subject to income tax.
A second international shipping register to encourage the
location of vessels within the Australian systems.
Changes to the single and continuous voyage permit system.
Packages to stimulate maritime training.
Packages to improve maritime productivity including the
introduction of "riding gangs" on Australian crewed
Changes to the taxation arrangements for Australian resident
seafarers (under s23AG).
The Minister for Infrastructure, Transport, Regional Development
and Local Government the Hon Anthony Albanese made these
announcements at an event hosted by the Australian Shipowners
Association ("ASA") on Friday 13 August 2010.
The measures come as a package. The measures are designed to
reduce vessel operating costs and provide flexibility. The detail
of the measures is to be developed in consultation with the
industry including the ASA. Whilst the Minister was not specific it
was implied that the measures would be introduced in the next term
of the government.
The measures include:
A tonnage tax regime competitive with other countries would be
introduced. This system would tax Australian shippers on a per
tonne basis and carry with it an obligation to train Australian
A 10 year write off of vessels would be introduced
Changes to s 23AG will be introduced to exempt Australian
resident seafarers from Australian tax for service on eligible
A forum for educators, industry and unions to work together on
improving training opportunities will be created.
The effectiveness of these measures will rely on the whole
package being coordinated and the details correct. There was little
detail provided and the Minister indicated that the detail needed
to be developed.
It is hoped that the measures will revitalise the Australian
shipping industry. Moore Stephens applauds the Government for
recognising the significance of the Australian shipping industry
and for announcing policy change to stimulate the industry.
Further detail will be provided as soon as it becomes available.
Should you wish to discuss this further do not hesitate to contact
your Moore Stephens partner.
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