| 1. |
Charter boat owners need to demonstrate that they are in
business (as defined within the ATO ruling and its
examples), including the provision of an acceptable business
plan. |
| |
|
| 2. |
Private use of the boat by the owner is an acceptable
circumstance as long as it is disclosed & provided charter
is the predominant use & takes precedence over private use. |
| |
|
| 3. |
The revenue & expense items contained within the forecasts
of the business plan must not be fanciful & need to be
prepared on a realistic basis after consultation with
experienced operators in the particular locality where the
boat will be operating. |
| |
|
| 4. |
The projected result of the business plan must indicate a
prospect of profit within the expected commercial life & be
of a substantial commercial nature. |
| |
|
| 5. |
The business plan will usually exclude a tax depreciation as
an expense, however, include an expected reduction in the
market value of the boat as an expense over the period of
the business plan. Conversely, the subsequent tax return
would usually contain the actual tax depreciation as part of
the expenses for business reductions. In such an instance,
there would be a significant difference between the business
plan & the physical tax return as a result of this area,
especially in the early years of the business. |
| |
|
For a summary of where the industry is now at in terms of a
clear direction forward, as well as a direct link to the ATO
web site which is very informative, see
www.finlease.com.au
– boats – charter.
If you would like to discuss the prospect of purchasing a
Catalina yacht & placing it into Ausail’s charter fleet,
please call Norman Ambrose on 9960-5511 for a detailed
summary. |
