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Taxation of boat hire arrangements.



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C93/02

4 September 2002

TAXATION OF BOAT HIRE ARRANGEMENTS

Minister for Revenue and Assistant Treasurer Senator Helen Coonan said today that the Government will carefully consider policy issues raised by the Australian Taxation Office's draft tax ruling on charter boat owners who enter into boat hire arrangements with charter boat operators.

The draft ruling, released today, indicates that deductions claimed for boat expenses will not be allowed where the boat owner enters into a boat hire arrangement with a charter boat operator, unless the activity meets the criteria of carrying on a business.

Boat hire arrangements are thought to be common in the charter boat industry.

Senator Coonan said the Government was aware of claims that this tax ruling could adversely impact on the charter boat industry and the wider associated tourism industry, and was giving serious consideration to the issue.

"There will be a six-week consultation period on the draft tax ruling, and the Government urges the public to actively participate in this process," Senator Coonan said.

"The Government will take into account all comments brought forward during the consultation period when considering the issue."

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