Mr ALBANESE (Grayndler—Leader of the House and Minister for Infrastructure and Transport) (13:33): by leave—I present a supplementary explanatory memorandum to the bill and move government amendment (1) on sheet CJ242 and amendments (1) and (2) on sheet CC236 as circulated:
The first amendment is to ensure royalties for bareboat charters are exempt from withholding tax and not subject to income tax instead. The royalty withholding tax exemption for non-resident lessors or bareboat charters is designed to encourage the use of bareboat charters by Australian shipping operators. Royalty withholding tax makes it more expensive to secure foreign vessels on a bareboat basis, that is, without a captain and crew, when compared to leasing vessels fully supplied with a captain and crew. These do not attract withholding tax. This amendment follows representations from industry that the royalty withholding tax exemption had the unintended effect of subjecting lessors to income tax instead. This could defeat the policy intent.
The second amendment is made to this bill to ensure that it aligns with the revised meaning of ‘excluded vessels’ in the Shipping Reform (Tax Incentives) Bill 2012.
I commend the bill, as amended, to the House.
Question agreed to.
Bill, as amended, agreed to.