Applying for tax incentives

A completed application form for a notice is to be submitted to the Department at least three months before the end of the income year for which the applicant intends to seek access to a tax incentive through the Australian Tax Office (ATO). A notice is required for new applicants to claim a tax incentive for a full year for the first income year. In the absence of a notice, any certificate issued to first time applicants will only cover the last three months of the income year.

A completed application form for a certificate is to be submitted to the Department after the end of an entity's income year but at least 30 days before the entity is required to lodge its income tax return for the income year. When applying for access to the tax incentives in subsequent years, applicants who have been issued a certificate in a previous year need only apply for a certificate from the Department and do not need a notice.

Please note the relevant eligibility requirements for the entity and the vessel when submitting your application for tax incentives. For more information on the specific requirements of the different tax incentives and how they apply to your circumstances, please contact the ATO.

Please submit your completed application for a notice or a certificate via email to taxincentives@infrastructure.gov.au.

An application can be made to the Administrative Review Tribunal for review of a decision of the Minister or Delegate under section 24 of the Shipping Reform (Tax Incentives) Act 2012.

Shipping exempt income tax incentive

Australian operators of Australian registered eligible vessels seeking a shipping exempt income tax Incentive on qualifying shipping income for the first time may wish to initially apply for a shipping exempt income notice establishing that they currently meet the qualifying conditions. Access to the shipping exempt income tax incentive requires applicants to satisfy the training and management requirements set out in the Shipping Reform (Tax Incentives) Regulations 2023.

A notice will be issued to the eligible vessel if applicants meet the qualifying conditions. As noted above, a notice is not required for access to the tax incentive after the first income year, however a notice provides assurance that the applicant meets the requirements, and is needed in order for the first certificate of an entity to commence earlier in the income year, instead of covering only the last three months of the income year.

In order to obtain the tax incentive, applicants are required to obtain a certificate from the Department after the end of the income year and at least 30 days before they are required to lodge their income tax return for the income year with the ATO.

Accelerated depreciation and roll-over relief

Australian corporate owners of Australian registered eligible vessels seeking accelerated depreciation and/or roll-over relief for the first time may wish to initially apply for a notice establishing that they meet the qualifying conditions. As noted above, a notice is not required for access to the tax incentive after the first income year, however in the absence of a notice the first certificate can only be issued for the last three months of the income year.

In order to obtain the tax incentive, applicants are required to obtain a certificate from the Department after the end of the income year and at least 30 days before they are required to lodge their income tax return for the income year.

Seafarer tax offset

An Australian company may be eligible for a tax offset for an income year if it employs an individual who is an Australian resident to undertake overseas voyages on eligible vessels in particular circumstances. One of the criteria for the tax offset is that a certificate must have been issued under the Shipping Reform (Tax Incentives) Act 2012 for the vessel.

Depending on the circumstances, you may be eligible to apply for a certificate for the vessel, or you may need to obtain a copy of the certificate from the operator or owner of the vessel.

Royalty withholding tax exemption

Foreign lessors of eligible vessels leased under a bareboat or demise charter (vessel leased without a crew) to an Australian resident company seeking an exemption from royalty withholding tax do not require a notice or a certificate under the Shipping Reform (Tax Incentives) Act 2012. This exemption can be obtained under the requirements set out in paragraph 128B(3)(m) of the Income Tax Assessment Act 1936.

Indicative timelines for processing applications

Please allow 15 business days for a complete application for a certificate or notice to be assessed by the Department. This timeframe is a guide only. The assessment process may take longer if:

  • any further information or clarification is required
  • the necessary supporting documentation is not initially provided
  • the application is incomplete.

Shipping Reform Tax Incentives Scheme—Privacy collection notice

The Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts (the department) collects personal information in accordance with the Privacy Act 1988 and as authorised under the Shipping Reform (Tax Incentives) Act 2012 (“the Act”). 

The department uses personal information in connection with an application and for the purposes of the Act. The department may disclose information (including personal information) to the Australian Taxation Office. Otherwise the department will not disclose personal information except as authorised by law.

The department stores personal information securely and the department’s privacy policy contains information regarding complaint handling processes and how to access and/or seek correction of personal information held by the Department. For more information see Privacy | Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.