The Federal Government has granted a wholesale sales tax (WST) exemption for space launch vehicles and satellites. The exemption applies to vehicles and satellites actually launched. It is designed to facilitate Australias commercial space industry.
The exemption was announced today by the Treasurer, Peter Costello, and the Minister for Industry, Science and Tourism, John Moore.
"This is a green light for an exciting and profitable industry to establish in Australia," Mr Costello said. "The Government decision to grant, as from today, a WST exemption for equipment that is actually launched provides a significant boost for the commercial space launch industry in Australia."
Mr Moore said the agreement sends a clear message to potential investors, confirming the Federal Governments support for this new industry.
"Todays announcement reflects our commitment to boosting investment through the policies outlined in the Governments industry statement, Investing for Growth. In this case, the net economic benefits for Australia are clear and without this support the project may not have proceeded."
"Satellites will be key components in the highly competitive information and technology and communications industries," said Mr Moore. "The Federal Governments policies are placing Australia at the forefront of this state-of-the-art industry."
The WST agreement will enable ventures such as the Kistler Aerospace project at Woomera to confidently take the first step in preparing infrastructure for launch operations in Australia.
"Construction and operation of space launch facilities will generate employment and contribute to national and regional economic growth," Mr Moore said.
"Our well developed infrastructure and technically proficient workforce, coupled with our ideal geographic location, makes Australia the perfect investment opportunity for the booming global space launch industry," said Mr Moore.
Both Mr Costello and Mr Moore acknowledged that the Federal Governments decision to grant WST exemption for launched equipment in space launch operations will further enhance Australias attractiveness to investors in this specialised field.