8/12/2019 Finlease Charter Boat Overview
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Finlease (Australia) Pty Ltd A.B.N. 35 003 752 636 Unit 26,
Norberry Terrace 177-199 Pacific Highway North Sydney NSW 2060
P.O. Box 1013 North Sydney NSW 2059 P02 9959 3122 F02 9959 3677
[email protected] www.finlease.com.au
The May 2006 Budget Press
Release and subsequent changesto Legislation (effective
1/6/07)have heralded a new era of fairtax treatment and certainty
forcharter boat owners.
The press release contained withinthe May 2006 Budget (see
link)heralded the commencement of afair tax treatment for Charter
boatowners by setting a minimum
base level of tax deductibilitywhilst still maintaining
theopportunity of total deductibityfor owners who are able to
fullysatisfy the business test as setdown in the Charter BoatRuling
issued in May 2003 - TR2003/04 Income Tax Boat
HireArrangements.
This press release and subsequent
legislative changes (effective1/7/07) introduced a 2nd tier
orbase level of deductibility whichallow owners to claim
annualcharter boat expenses to level oftheir annual charter boat
income,with any surplus expensesquarantined and carried forward
tobe offset against any future incomefrom the charter boat
business.
Having established this minimum
level of deductibility, fulldeductibility is still available
wherebusinesses fully satisfy thebusiness tests as set out in
TR2003/04, allowing annual charterboat expenses which exceed
theannual charter boat income to beoffset against other
applicable,assessable income within that year.
The statements contained within
this document are not to beconstrued as formal tax adviceand
potential Charter BoatOwners should seek qualified,
independent and expert advice in this
area.
For further information go to theATO web site and simply type
inboat hire arrangements as a keyword search or to view the
pressrelease from the Hon Peter Dutton Minister for Revenue and
theAssistant Treasurer please see thearticle below.
Charter Boat Business Model
As a part of the process for PotentialCharter Boat Owners to
assess wheretheir proposed charter boat businesswould sit in
relation to the abovecircumstances i.e. complying to theminimum
base level of tax deductibilityor able to fully satisfy the
business test
as set down in the Ruling TR 2003/04Income Tax Boat Hire
Arrangements,the potential business needs to beviewed as a
Financial Model.
To assist in this, in 2003, Finleasecreated and provided a
series of linkedspreadsheets (CHARTER BOATBUSINESS MODEL) to the
CharterBoat Industry Survival Campaign(CBISC). This basic series of
linkedexcel spreadsheets (which haverecently been updated) may
greatlyassist Potential Charter Boat Owners inmodeling the
structure and outcomesof their future income and expenseprojections
as a part of their overallbusiness models.
These spreadsheets (CHARTER BOATBUSINESS MODEL) provide a
templateto test the feasibility of a prospectivecharter business.
Potential Owners
simply insert the criteria of theirexpected circumstances into a
generalspreadsheet and view the results.These spreadsheets allow
for a wide
range of scenarios including %
financed, gross & net incomelevels, private use etc to be
tested.
Availability of the CharterBoat Business Model
If youd like to obtain aninteractive version of theCHARTER BOAT
BUSINESSMODEL as well as further
background on the recentLegislative changes, simply emailyour
request [email protected] phoneMark ODonoghue on02 9959
3122.
Disclaimer- The spreadsheettemplates have been produced ona
best-endeavours basis byFinlease for CBISC and PotentialCharter
Boat owners as an aid tothe industry. No warranty,guarantee or
assurance is impliedor given by Finlease, CBISC, itscommittee,
personnel orprofessional partners on thesespreadsheets.
Potential Charter Boat Ownersshould seek qualified,independent
and expert adviceprior to commencing a CharterBoat Business.
