Contact: Vessa Playfair
Deloitte
Director of Communications
+61 (0) 419 267 676

Contact: Kel Fitzalan
Deloitte
Partner
+61 (0) 2 9322 5331

Changes to rules relating to boat expenditure and the reintroduction of accelerated depreciation will lead to increased affordability of boats and a reduction of charter rates said Deloitte Tax Partner, Kel Fitzalan.

“As boat expenditure is now deductible against boat income, there is more incentive for boat owners to increase the availability of their boats for charter.

“We would expect more activity on Australia’s harbours, leading to increased competition and the driving down of charter rates.

“Previously, boat expenditure was not deductible even where income was derived from the boat.

“Whilst these changes should be welcomed by the boating industry, the sting in the tail is that any excess expenditure is quarantined and only available to offset future boat income.

“Negative gearing of boats remains prohibited.”