Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, today welcomed the release of the Australian Taxation Office (ATO) final ruling on the tax treatment of charter boat hire arrangements.
"This has been a valuable process by the ATO and the Charter Boat Industry Survival Campaign (CBISC) towards achieving a sensible and practical outcome through the rulings process," Senator Coonan said.
Senator Coonan commended the ATO and charter boat industry for their hard work in achieving this positive result.
"The charter boat industry and Federal Government have maintained a preference for a solution through the rulings process if achievable, rather than to change the law."
"This final ruling provides a practical solution that will provide charter boat businesses with confidence that where they are legitimately attempting to operate a profitable charter boat business, they will be entitled to the appropriate business deductions," Senator Coonan said.
The ruling contains practical examples, related to actual industry experience, showing what is expected to demonstrate that a legitimate charter boat business is carried on.
"These examples are real-life scenarios developed by the ATO and the charter boat industry that reflect the practice of the industry after its restructure," Senator Coonan said.
"The industry's active co-operation has been a valuable part of the rulings process and a key factor in ensuring the outcome is responsive to the needs of genuine charter boat owners and operators."
"I congratulate the ATO and CBISC representatives on this fair and considered result."