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- Schedule 1—Exempt shipping income
- Schedule 2—Capital allowances
- Schedule 3—Seafarer tax offset
- Schedule 4—Exempting bareboat charters from royalty withholding tax
- Schedule 5—Shipping information
Content WindowTax Laws Amendment (Shipping Reform) Bill 2012
1 Section 13-1 (after table item headed “winding-up of non-resident trust estates”)
made by companies to Australian seafarers...................
2 At the end of Division 61
Table of sections
61-700 Object of this Subdivision
61-705 Who is entitled to the seafarer tax offset
The object of this Subdivision is to stimulate opportunities for Australian seafarers to:
(a) be employed or engaged on overseas voyages; and
(b) acquire maritime skills.
(1) A company is entitled to a * tax offset for an income year if:
(a) the company is a corporation to which paragraph 51(xx) of the Constitution applies; and
(b) there is at least one individual in respect of whom the company has 91 days or more in the income year that qualify for the tax offset as mentioned in subsection (2).
(2) A particular day qualifies for the * tax offset under this Subdivision for a company for an individual if:
(a) on the day, the individual is an Australian resident who:
(i) is employed by the company; or
(ii) performs work or services under an * arrangement under which the company makes, at any time, a payment that is a * withholding payment covered by subsection 12-60(1) in Schedule 1 to the Taxation Administration Act 1953 (about labour hire arrangements); and
(b) on the day, the individual is so employed, or performs the work or services, on a voyage of a vessel as master, deck officer, integrated rating, steward or engineer; and
(c) the company, or another entity, has a certificate for the vessel that applies to the day under Part 2 of the Shipping Reform (Tax Incentives) Act 2012 ; and
(d) in the course of the voyage, the vessel travels between:
(i) a port in Australia and a port outside Australia; or
(ii) a port in Australia and a place in the waters of the sea above the continental shelf of a country other than Australia; or
(iii) a port outside Australia and a place in the waters of the sea above the continental shelf of Australia; or
(iv) a place in the waters of the sea above the continental shelf of Australia and a place in the waters of the sea above the continental shelf of a country other than Australia; or
(v) ports outside Australia; or
(vi) places beyond the continental shelf of Australia;
whether or not the ship travels between 2 or more ports in Australia in the course of the voyage.
Note 1: An entity may be entitled to a certificate for a vessel under Part 2 of the Shipping Reform (Tax Incentives) Act 2012 if it meets the requirements (relating to such things as tonnage, registration and usage) in that Act.
Note 2: An entity cannot be entitled to a certificate for a vessel under Part 2 of that Act for a day before 1 July 2012: see paragraph 8(4)(b) of that Act.
(3) For the purposes of paragraph (2)(b), the voyage of a vessel is taken to:
(a) start on the earliest day on which one or more of the following occurs:
(i) * shipping cargo to be carried on the voyage, or any part of the voyage, is first loaded into the vessel;
(ii) * shipping passengers to be carried on the voyage, or any part of the voyage, first board the vessel;
(iii) the voyage begins; and
(b) end on the latest day on which any of the following occurs:
(i) all shipping cargo carried on the voyage, or any part of the voyage, is completely unloaded from the vessel;
(ii) all shipping passengers carried on the voyage, or any part of the voyage, finally disembark from the vessel;
(iii) the voyage ends.
The amount of the company’s * tax offset for the income year is the amount (rounded up to the nearest whole dollar) worked out using the formula:
gross payment amounts means the total amount of * withholding payments covered by section 12-35 or subsection 12-60(1) in Schedule 1 to the Taxation Administration Act 1953 payable by the company in the income year:
(a) to individuals in respect of whom the company has 91 days or more in the income year that qualify for the offset as mentioned in subsection 61-705(2); and
(b) in respect of any of the following:
(i) the employment of, or the work or services performed by, such individuals in relation to which the company so qualifies for the offset;
(ii) leave accrued by such individuals during such employment, work or services;
(iii) training of such individuals that relates to such employment, work or services.
3 Section 67-23 (after table item 12)
the * tax offset available under Subdivision 61-N