Commonwealth of Australia Explanatory Memoranda

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SHIPPING REFORM (TAX INCENTIVES) BILL 2012

                                       2010-2011-2012


          THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA



                             HOUSE OF REPRESENTATIVES



                  SHIPPING REFORM (TAX INCENTIVES) BILL 2012



                 SUPPLEMENTARY EXPLANATORY MEMORANDUM

                     Amendments Moved on behalf of the Government


           (Circulated by authority of the Minister for Infrastructure and Transport
                           the Honourable Anthony Albanese, MP)



The amendment provides:

That the Minister may make a determination under subclause 10(5) that further clarifies
which vessels should be eligible for the tax concessions.

Clause 10 sets out which vessels are eligible for the tax concessions. Vessels will need to be
over 500 gross tonnes and registered under either Australia's primary or International
Shipping Registers. Additionally vessels may not be eligible if they fall within the list of
excluded vessels in subclause 10(4). The list aims to confine the concession to the so called
`blue water' fleet. Due to the broad nature of the definitions contained in this list the Bill
allows for the Minister to make a determination under subclause 10(5) that further clarifies
which vessels should be eligible for the tax concessions. Cargo Vessels between 200 and less
than 500 gross tonnes may also be eligible if they are primarily used in regional or remote
Australia and the Minister exercises the discretion to admit them. Vessels operating wholly or
mainly from a stationary position includes vessels anchored more or less permanently which
operate as floating hotels or casinos.