Australian Government to examine tax changes to shipping - discussion paper released
Posted on: 07/12/2010
The Australian Government has released a Discussion paper outlining reforms it is proposing with regard to Australia's domestic shipping industry. Over the course of the next 3 years, the Government proposes to, among other things, introduce new tax arrangements to attract greater investment into the industry.
The Government will consider:
- enabling Australian companies using Australian registered ships to pay a new tonnage tax or remain with the current tax regime (which will be bolstered through accelerated depreciation arrangements);
- exemption from the payment of Royalty Withholding Tax of owners of vessels where the vessel is leased under a bareboat charter to an Australian company; and
- making changes to income tax arrangements for Australian resident international seafarers to remove disincentives for companies employing Australians.
Comments on the Discussion paper are due by the end of January 2011. The consultation process will conclude by the end of May 2011.
M Squared are currently reviewing the discussion paper, and where appropriate may contribute to the consultation process.