The Minister for Transport and Infrastructure Anthony Albanese
MP yesterday introduced into Parliament 5 bills to reform
The Bills are almost identical to the Draft Bills that were
provided to industry in February. See our Shipping Matters! of
February 2012 at the following address (access article
The Bills ignore most of the Industry comments and the matters
we raised in our submission (access article
These reforms are welcome but not allowing the tax exempt nature
of shipping income to flow through to shareholders may compromise
the effectiveness of the reforms in stimulating investment in
Changes to the Reforms announced in the Draft
Refundable Tax Offset for
The refundable tax offset has been raised to 30% (up from 27%).
The definition of voyage has been widened to include all of the
time on the "voyage" (such as the ballast component)
rather than only to the point of discharge of cargo or passengers.
The definition of salary or wages paid in respect of Australian
resident seafarers has been widened to include payments for leave
accrued during a voyage and payments related to training for such
voyages. These changes are welcome.
Income Tax Exemption
The main change from the draft Bills circulated earlier this month
is the exclusion from eligible shipping activities of "vessels
operating wholly or mainly within a harbour". In the draft
Bill "barges" were excluded and this reference has been
removed as there is no clear meaning of the term.
Temporary Licensing Regime
In response to Industry Comments the Bill now prescribes the
minimum number of voyages to be specified to be 5 (down from 10)
and an acceptable tolerance of 20% up or down in relation to cargo
and/or passengers for the purposes of a temporary licence. There is
a licence category for emergency licences but this is intended to
only be available for natural disasters and the like rather than
Should you wish to discuss this matter please contact your
relationship partner or Stephen Adrian.
In response to growing interest in the commercial use of drones or RPAs in Australia, CASA has developed new regulations.
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