Stronger shipping for a stronger economy

The government has announced reforms, including tax law changes, to revitalise the Australian shipping industry and build the maritime workforce capability.

The tax reforms remove barriers to investment in Australian shipping, foster the global competitiveness of the industry and secure a stable maritime skills base.

The reforms include:

• tax exemptions for Australian ship operators who meet certain conditions
• a reduction in the depreciation period from 20 to 10 years for certain qualifying vessels, with a balancing charge deferral
• an exemption from royalty withholding tax liability for foreign owners of vessels where the vessel is leased under a bareboat charter to an Australian company
• a seafarers' tax concession for resident employers of Australian resident seafarers, who spend 91 days or more on international voyages on qualifying vessels in an income year.

Consistent with the Australian Government's objectives to increase the size of the national fleet, registration on the Australian primary or international shipping register will be a prerequisite for access to these tax incentives.

Media releases

For more information, refer to media release AA169/2011 issued on 9 September 2011 by the Minister for Transport and Infrastructure.

Legislation and supporting materials

The following legislation received royal assent on 21 June 2012:

• Tax Laws Amendment (Shipping Reform) Act 2012
• Explanatory Memorandum.

More information For more information refer to: Exposure draft and Explanatory Memorandum - Shipping Reform (Tax Incentives) Bill 2012 Discussion paper released by the Minister for Infrastructure and Transport on 1 December 2010.