Applying for Tax Incentives

Complete application forms for notices are to be submitted to the Department at least three months before the end of the income year in which the applicant intends to seek access to a tax concession through the Australian Tax Office (ATO). At the end of the income year the applicant should submit an application for a certificate. Please note that for new entrants, in order to claim a tax concession for a full year, a notice is required. In the absence of a notice, any certificate issued will only cover the last three months of the income year. When applying for access to the tax incentives in subsequent years, applicants need only seek a certificate from the Department.

Please note the relevant eligibility requirements when considering your application for tax incentives.

Owners of Australian registered eligible vessels seeking accelerated depreciation and rollover relief

Please first apply for a notice establishing that you are meeting the qualifying conditions. A notice will be issued if you meet the criteria. You are required to obtain a certificate from the Department after the end of your income year and at least 30 days before lodging your tax return with the ATO.

Operators of Australian registered eligible vessels seeking an income tax exemption (ITE) on qualifying shipping income

Please first apply for an ITE notice establishing that you are currently meeting the qualifying conditions. Note that access to the ITE requires applicants to satisfy training and management requirements set out in the Shipping Reform (Tax Incentives) Regulations 2012. A notice will be issued if you meet the qualifying conditions. You are required to obtain a certificate from the Department after the end of your income year and at least 30 days before lodging your tax return with the ATO.

Employers of eligible Australian seafarers seeking a refundable tax offset

If you are a shipping operator and have a certificate (complying with the notice process) that has been issued by the Department, it will meet the certificate requirements of the Seafarer Tax Offset set out in Schedule 3 to the Tax Laws Amendment (Shipping reform) Act 2012.

If you are a crew management company supplying crew to a company that has a certificate the Department will have issued a notice and a certificate to the shipping company. You will need to obtain a copy of the certificate from the shipping operator before lodging your tax return with the ATO.

Foreign owners of eligible vessels leased under a bareboat or demise charter to an Australian operator seeking an exemption from royalty withholding tax

Neither a notice nor certificate is required prior to seeking an exemption from royalty withholding tax. This exemption is obtained directly in accordance with the requirements set out in the Tax Law Amendment (Shipping Reform) Act 2012.

Indicative Timelines for Processing your Application

Item Indicative Timeframe
Acknowledgment of application 5 business days
Request for further advice covering notice or certificate (non-ITE) 10 business days
Request for further advice covering notice or certificate (ITE) 15 business days
Assessment of notice or certificate (non-ITE) 15 business days
from receipt of complete application

Assessment of notice or certificate (ITE)

20 business days
from receipt of complete application

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Last Updated: 20 June, 2014