Yesterday's Federal Budget has introduced several
significant changes that are likely to affect the Shipping
Industry. The Budget introduced some positive changes in respect of
GST and cross border transactions which should improve the GST
compliance costs for non-residents transporting goods in Australia.
Unfortunately, the Budget also introduced an additional compliance
burden with respect to the taxation of foreign employment income
which will no longer be exempt in Australia except in limited
circumstances.
Below is a brief summary of these changes.
GST
Proposed Relief For Non-Residents Shipping Companies
The Government has responded to the Board of Taxation's
previous review of the legal framework for the administration of
GST which outlined a number of issues concerning non-residents and
cross border transactions. The Board made the following
recommendations:
