About the offset
The seafarer tax offset is a refundable tax offset that:
- allows eligible Australian companies to claim for certain withholding payments made to Australian resident seafarers working on international voyages
- the ATO and the Department of Infrastructure, Transport, Regional Development, Communications and the Arts (DITRDCA) jointly administer.
Eligibility
The offset is available to Australian resident companies employing Australian resident individuals:
- who are employed, or perform the work or services, for at least 91 days in the income year
- on a voyage of a vessel as
- a master
- a deck officer
- an integrated rating
- a steward, or
- an engineer (also referred to as seafarer).
The vessel must have a certificate under the Shipping Reform (Tax Incentives) Act 2012 to be eligible. For information on how to apply for a certificate, see the DITRDCA websiteExternal Link.
How to claim the offset
Step 1: Check that you
- meet the DITRDCA eligibility requirements
- have obtained a certificate for the vessel.
Step 2: Calculate the offset.
Determine the total gross payment amounts made to the seafarer. This consists of the total amount of payments for work and services that are subject to withholding for any of the following:
- The employment of, or the work or services performed by, the seafarer in relation to which the company so qualifies for the offset.
- Leave accrued by the seafarer during such employment, work or services.
- Training of the seafarer that relates to such employment, work or services.
Multiply the total gross payment amounts made to the seafarer by 30% to calculate the offset amount.
Step 3: Include the total tax offset at label E of the company tax return.
For more information, see Calculation statement label E.