Tax Laws Amendment (Shipping Reform) Act 2012 (57 of 2012)

Schedule 4   Exempting bareboat charters from royalty withholding tax

Income Tax Assessment Act 1936

1   At the end of subsection 128B(3)


; or (m) income that consists of a royalty that is paid to the non-resident by a person (the lessee ) as consideration for the lease, by the lessee from the non-resident, of a vessel if:

(i) the lessee is an Australian resident company; and

(ii) the vessel is not an excluded vessel (within the meaning of the Shipping Reform (Tax Incentives) Act 2012); and

(iii) under the lease, the lessee has whole possession and control of the vessel (including the right to appoint the master and crew of the ship); and

(iv) during the period of the lease, the vessel is used, or is available for use, as mentioned in paragraph 8(1)(c) of the Shipping Reform (Tax Incentives) Act 2012.