Axe the taxes, says peak tourism body
The Tourism & Tax Forum (TTF) has presented its list of recommendations for tax reform to the Australian federal government’s tax forum in Canberra.
Ann Sherry, deputy chair of TTF and chief executive of Carnival Australia, delivered the sector’s tax reform priorities during the business tax session.
TTF said the Australian tourism industry is heavily taxed as a sector.
Tourism generated approximately $6.9 billion in net federal and state revenue in 2009â€10, including the goods and services tax and other taxes on production (but excluding the passenger movement charge airport departure tax, which TTF considers to be a direct tax on tourism).
TTF believes reform of Australia’s tax system could make tourism more competitive and create incentives for investment in new tourism product.
TTF believes there are opportunities for tax reform across a number of areas, including stateâ€based taxes such as payroll taxes, land taxes and stamp duty and GST issues such as the Tourist Refund Scheme (TRS) and GSTâ€free status on leisure travel packages.
TTF says its four key priorities are:
1. A capital works deduction bonus and an accelerated depreciation schedule for hotels’ furniture, fittings and equipment (FF&E);
2. An explicit zero-rating for aviation biofuels in the Carbon Tax excise regulation, to help create a sustainable alternative fuels industry;
3. Review the passenger movement charge (PMC) and align the departure tax more closely with the federal government’s tourism policy goals;
4. The provision of a fringe benefits tax (FBT) exemption for employerâ€provided public transport and carpooling expenses capped at $75 per employee per month.
Ian Jarrett
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