In a time where Australia’s tourism industry is facing fierce international competition and the pressure of a high dollar, our industry does not need to be slugged with a further measure that will impact our competitiveness.
Proposed changes to key tax measures outlined in the report of the Business Tax Working Group Discussion Paper are of serious concern to Australia’s tourism industry, ATEC (Australian Tourism Export Council) Managing Director, Felicia Mariani said.
“In a time where Australia’s tourism industry is facing fierce international competition and the pressure of a high dollar, our industry does not need to be slugged with a further measure that will impact our competitiveness,” Ms Mariani said.
“The proposal to remove depreciation tax initiatives from aircraft and accommodation infrastructure is of serious concern to our industry, putting our carriers and accommodation providers at a severe disadvantage on the international stage.”
Ms Mariani said these tax concessions currently recognise the enormous upfront costs involved in acquiring aircraft and building hotels.
“Removing these tax concessions, as has been proposed in the discussion paper, will only serve to discourage investment in important tourism infrastructure at a time when the government has clearly recognised the need for this country to attract investment in the tourism sector.
“Australia’s depreciation schedule already puts our aviation industry well behind some of our major competitors and removing this initiative is another slug on Australia’s carriers and the tourism industry that it supports.
“On top of this our domestic carriers are already bearing an unfair burden in the form of the Carbon Tax, which doesn’t apply to international carriers. The competitiveness of Australia’s carriers is hanging by a thread and this proposal will only further degrade our ability to be internationally competitive.”
“At a time when the Government has outlined an ambitious plan to grow the tourism industry, that includes increasing investment in hotel infrastructure coupled with increased air services to build demand, this measure will see the tax man give with one hand and take with the other.
“The Australian tourism industry cannot continue to bear the burden of the bright policy ideas of this Government and I call on the Treasurer to reject the removal of these important tax concessions that encourage investment in our tourism industry.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
