Stimulus Package for Australian Shipping

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:

1. tax reform;
2. the creation of an Australian international shipping register; and
3. a new coastal shipping licensing regime.

Tax Reform

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 significantly including:

1. a zero per cent (0%) tax rate for Australian shipping operators;