Due to confusion over whether megayachts would be required to pay an upcoming increase in Australia’s carbon tax, Superyacht Australia, which represents the megayacht industry in the country and promotes its nautical tourism, has obtained clarification from the Australia Tax Office. The good news is, visiting megayachts need not be concerned.
First, some background. In July 2012, the government of Australia introduced a carbon-pricing policy, a.k.a. carbon tax, requiring businesses that annually emit more than 25,000 tons of carbon dioxide-equivalent emissions to buy emissions permits. In a nutshell, it means companies that produce a specific mixture and amount of greenhouse gases need to pay a fee, thereby putting an approximate cost on environmental damage that may stem from these emissions. The goal is to convince companies to reduce their carbon footprint and seek greener technology. For the 2012-2013 financial year, the carbon tax has been AUS$23 (about US$22) per ton, and when the policy was passed, it included an annual 2.5-percent increase through the 2015-2016 financial year.
According to Superyacht Australia, confusion arose after Inchape Shipping Services, which offers a variety of maritime services, sent out notification of the upcoming tax increase, effective on July 1, to its clients. Some media misinterpreted the notification to mean that all megayachts entering Australia would need to pay the fee on fuel. Superyacht Australia received the following explanation from the country’s tax authority:
Excise or customs duty rates for diesel and other liquid fuels are not changing. If you operate a vessel (including super yachts) in Australian waters for recreational purposes, the fuel you purchase has excise or customs duty included in the price. The duty rate is AUD 38.143 cents per litre and will continue to be this rate from 1 July 2013. If you leave Australian waters you are still entitled to claim a refund of the full duty amount for the fuel remaining on board from the Australian Taxation Office (ATO). For more information, refer to Bunker fuel and private yachts on the ATO website. You are unable to claim fuel tax credits for the fuel you acquire for use in recreational vessels. Fuel tax credits provide a credit for the fuel tax (excise or customs duty) included in the price of fuel used in business activities or for domestic electricity generation only.
In other words, don’t change your cruising plans.
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