Policy all at sea…

Have you heard about the Seafarers Tax Offset… Probably not…

This is a 30% refundable tax offset paid to companies that employ seafarers on the salary they pay their seafaring employees. It is effectively a promise to pay 30% of the salaries of these seafaring employees.

Some bright spark thought this would “stimulate opportunities for Australian seafarers to be employed on overseas voyages and to gain maritime skills.”

From 1 July 2012 when it was introduced until 1 July 2014, a whole 20 employers, covering only 250 employees, claimed the offset. That is not the increase in employees in the sector (as this was supposed to help), but the total employees covered by claim for the offset. I would call that a massive fail (kind of like the revenue estimates of the Mining Tax).

Fortunately the Tax and Superannuation Laws Amendment (2014 Measures No. 5) Bill 2014 will repeal Subdivision 61-K of the ITAA97 from 1 July 2015 and so end this quite silly offset.

Is there anyway if we can find out if any of these 20 employers made a contribution to the previous Government?

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About Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.
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