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Australia to simplify bunker excise for vessels with GRT of 400 tonnes and above

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From 1 January 2025, vessels with gross register tonnage of 400 tonnes and above and engaged in commercial shipping, the excise will be zero rated and there will be no requirement for excise to be paid and subsequently recovered.
Sydney, Dan Freeman on Unsplash

Australia’s Tax Office and Border Force have agreed to simplify the process which requires vessels carrying wholly coastal cargoes between Australian ports to pay a bunker excise, according to GAC Hot Port News on Friday (26 July). 

Under current legislation, vessels carrying wholly coastal cargoes between Australian ports are required to pay bunker excise to Australian Border Force (ABF) based on either consumption during the coastal voyage (for short term disconnections from international trading of 3 or less legs) or are required to pay excise on all bunkers on board if the disconnection from international trading is more than three legs. 

This excise was then fully refundable (via the agent) to the ship operator via the Fuel Tax Credit Scheme from the Australian Tax Office (ATO).

From 1 January 2025, vessels with a gross register tonnage (GRT) of 400 tonnes and above and engaged in commercial shipping, the excise will be zero rated and there will be no requirement for the excise to be paid and subsequently recovered.

ABF and ATO are currently finalising and aligning their future requirements in way of reporting.

 

Photo credit: Dan Freeman on Unsplash
Published: 29 July, 2024

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