In September 2011, the Federal Government announced a new and
far-reaching policy package aimed at re-invigorating the Australian
shipping industry. The policy, which might be described as the
'stimulus package for Australian shipping', seeks to
introduce three key changes:
the creation of an Australian international shipping register;
a new coastal shipping licensing regime.
The tax reform package will involve a raft of measures designed
to reduce the tax burden on Australian companies seeking to compete
in the Australian coastal and international shipping industry, most
a zero per cent (0%) tax rate for Australian shipping
accelerated depreciation of vessels over a 10 year period
(rather than a 20 year period as currently); and
exempting hire payments under bareboat charters from royalty
Australian International Shipping register
A second Australian Shipping Register will be created for
Australian-flagged vessels which are intended to trade
internationally. Vessels on the International Register will
generally be relieved of the obligation to meet Australian labour
conditions during the period of overseas voyages, during which the
prevailing conditions under the Maritime Labour Convention will
apply. This should result in a significant decrease in the costs of
labour for international voyages.
The new coastal shipping licensing regime will create three
categories of license, one of which must be obtained in order to
engage in Australian costal shipping:
a general license for Australian flagged vessels with
unrestricted access to coastal trades. These licenses will be valid
for up to five years at a time;
a temporary license for foreign-flagged vessels to access
costal shipping trades. More stringent trade
restrictions/conditions than exist currently will be imposed on the
issue of such licenses. These licenses will be valid only for up to
12 months; and
an emergency license for single voyages in the event of an
emergency, e.g. natural disaster.
Further details of the package reforms will be available when
draft enabling legislation is circulated for industry consultation,
which is expected to be sometime after November 2011.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Local and international news about shipping, aviation, rail and road transport.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).