Shipping Matters- December 2010

Fiscal Measures

There will be several fiscal reforms that this industry has long called for. Australian companies that operate Australian registered trading ships above 500 tons would be able to elect to pay tonnage tax, attracting tax liability on income from trading activities based on the tonnage of the ship. In return, businesses will need to agree to train new entrants to the industry.

Alternatively, companies could choose to accelerate depreciation within the existing corporate tax structure by allowing them to depreciate ships over a 10 year life.

To encourage Australian-based international seafarers to stay with the industry, such workers will be taxed according to the number of days spent on a qualifying vessel. This will bring Australian international seafarers in line with those of other countries.