Sunsetting Review of Legislative Instruments under the Shipping Reform (Tax Incentives) Act 2012

The Shipping Reform (Tax Incentives) Regulation 2012 (the Regulation) and the Shipping Reform (Tax Incentives) Act 2012 - Subsection 10 (5) specification of kinds of vessels (the Instrument) are scheduled to sunset 1 October 2022 and 1 October 2023, respectively.

The Department has determined from an initial review that the legislative instruments remain fit for purpose and can be remade with only minor amendments. The proposed approach is to update references to dates and titles to the new commencement year for both instruments and amend Subsection 4(4) of the Regulation which references the superseded legislation Navigation Act 1912 to reference the in force legislation ‘Navigation Act 2012’.

The Department also proposes to align the sunset date of the Regulation from 1 October 2022 to that of the Instrument, 1 October 2023 to allow the two instruments to be reviewed together in preparation for their respective remaking. An alignment of the sunset date to 1 October 2023 will result in the current operation of the Regulation effectively being extended by one year.

The Department welcomes feedback from shipping tax incentives stakeholders on the proposed approach to remake the Regulation and the Instrument and any potential disruption an alignment of the sunset date of the Regulation to 1 October 2023 may pose.

The deadline for stakeholder feedback is close of business Tuesday 5 October 2021.