Industry fury at new tax proposal

Industry fury at new tax proposal
By admin

Industry bodies riled by proposed changes to business tax have argued that removing depreciation tax initiatives from aircraft and accommodation infrastructure will place Australian tourism at a global disadvantage.

Recommendations outlined in the Business Tax Working Group Discussion Paper include the removal of the 10-year depreciation schedule for aircraft and the inclusion of hotels and tourist accommodation in the same depreciation regime as commercial buildings.

According to the Australian Tourism Export Council (ATEC), current tax concessions recognise the “enormous” upfront costs of investing in domestic aviation and accommodation. It predicted their removal would discourage investment.

“At a time when the Government has outlined an ambitious plan to grow the tourism industry, that includes increasing investment in hotel infrastructure coupled with increased air services to build demand, this measure will see the tax man give with one hand and take with the other,” ATEC managing director Felicia Mariani said.

In addition, the changes would add to the burden created by the strong Australian dollar, international competition and the recently implemented carbon tax.

“Our industry does not need to be slugged with a further measure that will impact our competitiveness,” Mariani said.

Meanwhile, the Tourism and Transport Forum’s chief executive John Lee called for a speeding up of depreciation schedules rather than a slowing down.

”Combined, these proposals would significantly lessen the incentive to modernise our tourism product at the very time when we are competing with new destinations,” he said.

“The tourism industry will resist any attempt to lengthen depreciation on its assets at a time when hotels need refreshing and there is a pressure on aircraft efficiency.”

Latest News

  • Destinations
  • Tourism

Surge in Australians visiting Japan

The number of Australians visiting Japan in the first quarter of 2024 increased by 46.3% compared to the same period in 2019, new data released by Japan National Tourism Organization (JNTO) shows. Visitor numbers in March alone were up a staggering 87.4% compared to March 2019. “These figures are fantastic to see and confirm what […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]