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 over $150,000 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 in 2021 an immediate one off depreciation claim of $400k + $60k normal depreciation (15% of the remaining $400k balance).
Further information about this investment incentive is available on the Treasury website here: https://treasury.gov.au/coronavirus/business-investment and there is a fact sheet available here: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Support_for_business_investment.pdf
There are very limited charter boats that this investment allowance can apply to due to the long lead times in the marine industry at present, but it can apply to new Seawind 1160’s and Aquila 36 charter catamarans. As charter boat investment experts, we can help place these new boats into established fleets like our own here in Sydney Harbour or in the Whitsundays.

With outbound tourists out numbering inbound tourists normally in Australia, the local tourism market is positioned well to cater to the local domestic market in the short term and international market in the longer term. If the Australian dollar remains low it will result in holidaying in Australia cheaper.


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