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AUSTRALIA OFFERS REFUNDS OF NEW GOODS AND SERVICES TAX

AUSTRALIA OFFERS REFUNDS OF NEW GOODS AND SERVICES TAX

   The Australian government says it will offer refunds for its new Goods and Services Tax on port costs to all shipowners operating in the country’s ports.

   The tax, to be implemented July 1, will be levied against vessels’ port disbursements accounts at a rate of 10 percent.

   Earlier reports indicated that refunds would only be available to shipowners whose vessels are loading cargoes in Australian ports, while no refunds would be available for vessels carrying imports. “It’s not as bad as we initially feared,” said Thomas Timlen of the Baltic and International Maritime Council.

   Vessel operators in the Australian coastal trades will also be able to receive refunds on tax accessed on their port costs. However, they will now have to pay a 10 percent Goods and Services Tax on their freight income.