50% Instant Depreciation Deduction And How it Applies to Charter Boats
On the 12th of March, the Morrison Government announced a stimulus package which included a investment incentive that can apply to charter boat purchases. This investment incentive applies to businesses who buy NEW charter boats that can be delivered and operating by June 30, 2021.
The incentive includes a 50% instant tax deduction of the charter boat purchase in the first tax year, with existing depreciation applying to the balance of the boat’s cost after that. This is available to businesses with aggregated turnover below $500 million and only applies to NEW charter boats, not used.
Below is an example:
If a business bought a new $800k boat and had it delivered by June 30 2021, they would get on 2021 an immediate one off depreciation claim of $400k + $60k normal depreciation (15% of the remaining $400k balance.
Detailed Information from the ATO here:
Disclaimer: Multihull Central do not provide accounting or financial advice and advise to seek independent accounting advice. However we can recommend accountants who specialise in charter boat investments to provide formal advice.
With outbound tourists out numbering inbound tourists normally in Australia, the local tourism market is positions well to cater to the local domestic market in the short term and international market in the longer term if the Australia dollar remains low making Australia holidays cheaper.
Interview with Charter Operator
We speak live with the Managing Director of Whitsunday Escapes about his views on how the Whitsunday charter industry is placed for the future and explore how charter boat ownership programs work and how they are helped by the Australian Government stimulus package. Jump in and get inspired for some big cruising goals for the future. Watch the replay.