AUSTRALIAN Transport Minister Anthony Albanese has said that the Govt is mulling major tax breaks to leg up the sagging growth of struggling shipping industry. Australia may set up an international shipping register.

The tax break would allow Australian-flagged operators to be exempted from corporate income tax, when operating around the Australian coast and internationally. To qualify for the tax break the ships will have to remain registered in the country for 10 years.

Other proposed changes are roll-over relief for certain capital assets, tax exemptions for seafarers working overseas on eligible vessels, a royalty Withholding Tax exemption where vessels are leased by an Australian company from foreign owners under a bareboat charter and cutting the depreciation period from 20 years to 10 years.