Tax officer sinks yacht lease deal

July 6 2002: The Australian Taxation Office said yesterday it would deny tax deductions claimed by yacht owners who leased out their leisure craft simply to secure a tax benefit.

Yacht owners who chartered or leased their boats to a chartering business needed to give the tax office more proof that it was a legitimate venture, the Tax Commissioner, Michael Carmody, said. The structure being looked at is used by most yacht chartering businesses.

It recently reviewed one boat charter arrangement where a yacht was acquired and leased to a boat chartering company.

"Large losses from the activity were being written off against other income of the boat owners," Mr Carmody said.

"In the particular case, examined advertising material stressed the benefits of the arrangements in overcoming the financial drain that goes with private ownership of the yacht."

The advertising said the yacht would, on average, be on charter for only 75 days, leaving 290 days available for the owner.

"We find it difficult to see that a person owning one yacht and simply leasing it to a charter company could be said to be carrying on a business."

AAP

Source: http://www.smh.com.au/articles/2002/07/05/1025667059948.html

Charter Vessel Changes at Circular Quay

3 July 2002: The Waterways Authority today announced the outcome of the Expression of Interest process for charter vessel service access to Wharf 6 at Circular Quay.

Mr Matthew Taylor, Chief Executive of the Waterways Authority said the successful cruise operators were:

Captain Cook Cruises (use of the eastern [Opera House] side of Wharf 6 and Hegartys Ferries moving to Wharf 5)
Blue Line Cruises (shared use of the western side of Wharf 6)
Matilda Cruises (shared use of the western side of Wharf 6)
Mr Taylor said, “Last year the Waterways initiated an Expression of Interest process which was designed to guarantee fairness and access for the existing operator, Captain Cook Cruises, while promoting competition and getting the best value for the public.”

“Waterways recognises that Captain Cook Cruises has had 30 years of almost exclusive use of Wharf 6.

“Wharf 6 is an important part of Sydney’s cruise boat industry and it would be unfair for Waterways to prevent competition. The Expression of Interest process will increase access and ensure the best use of the wharf.

“Captain Cook Cruises has been offered timeslots on the eastern side of Wharf 6 which enable it to maintain the current number of services with room to accommodate future growth.

“However, by allowing three cruise operators to use Wharf 6, tourists and Sydneysiders alike will have better choice, more frequent cruise services and a better range of prices.”

Commercial charter operators now have a world-class facility at King St Wharf where overnighting a vessel is safe and convenient and the necessary back-of-house facilities exist. It is no longer necessary for any operator to use Wharf 6 as an exclusive operational base as has been the case in the past.

All three operators identified through the EOI process were sent letters of offer in mid-May 2002 and asked to indicate their acceptance or otherwise by early-June. Blue Line Cruises and Matilda Cruises accepted the offer, but Captain Cook was given an extension in order to allow further negotiations.

These negotiations have taken place but by close of business yesterday, Captain Cook Cruises had not indicated its acceptance.

“Waterways has now decided to implement the process of reallocation of berthing on Wharf 6 and has this afternoon requested Captain Cook Cruises vacate the western side of the wharf by 5 August,” said Mr Taylor.

“This will effectively mean that Captain Cook Cruises will retain access to the eastern side of Wharf 6 and its other facilities.”

“Waterways remains open to further negotiations with Captain Cook over the next month, but the time has come to open up better, fairer access to Wharf 6,” Mr Taylor said.

Jet Ski Rider Fined $1620

3 July 2002: A jet ski rider was convicted yesterday in the Downing Street Centre for operating his craft in a prohibited area at Little Beach, Port Stephens.

The 25-year-old man was fined $1620 including costs after being found guilty of operating his vessel in a prohibited area, not wearing a lifejacket and causing a nuisance.

Despite warnings by a Waterways Authority boating services officer late last year, the Chatswood man continued to operate his jet ski, also known as a personal water craft (PWC), in the ‘no go’ zone.

When approached by the Waterways officer, the man was uncooperative and used his PWC to deliberately spray the Waterways vessel. Penalty notices were issued but the man elected to take the matter to court.

Regional Manager for the Hunter / Inland, John Fisher said the majority of PWC riders are law abiding and it is unfortunate that a minority cause some problems.

“A PWC used responsibly will have minimal impact on our waterways provided that some basic safe boating rules are observed,” Mr Fisher said.

Key safety requirements for PWC include the following:

Keep an appropriate distance from other water users;
observe navigation and speed restrictions;
do not operate between sunset and sunrise; and
wear a lifejacket or personal flotation device.
PWC riders can obtain a free Ride Smart video and sticker when they present their PWC licence to a Waterways Authority office.

Drink Driving Skipper Convicted

1 July 2002: A Pindimar man was today convicted in Raymond Terrace Local Court for operating a vessel on the Myall River earlier this year with blood alcohol reading of 0.205.

The 37-year-old man was fined $500 plus costs of $59 and was placed on a 12-month good behaviour bond.

A Waterways Authority boating officer observed the man operating his vessel near Tea Gardens on 10 June 2002 and had reasonable cause to believe the man was intoxicated.

The boating officer contacted Police who later arrested the man for initially refusing to undergo a breathtest. The man later returned a high range reading of 0.205.

Waterways Authority Regional Manager, John Fisher, said the incident highlighted the need for all boaters to realise similar rules for drink driving apply on State waters as on the roads.

“In general, boaters must keep under the 0.05 limit and when it comes to commercial boat skippers they must stay under 0.02,” he said.

“No one wants an intoxicated person in charge of a vessel as it can put innocent lives at risk.

“Passengers and crew should also take care because the combination of wind, waves and sun can multiply the effect of alcohol and collectively are known as ‘boater fatigue’.

“Persons with ‘boater fatigue’ are at a greater risk of drowning should they fall into the water and that goes equally for the skipper, crew or passenger.”

For more information on safe boating contact the Waterways Info Line 13 12 56 or click here.

Coast Radio Network Up and Running

1 July 2002: The Waterways Authority Chief Executive, Matthew Taylor today announced the successful overnight transition of marine radio communications for NSW.

“Overnight the Federal Government and Telstra relinquished their Australia-wide role in marine safety radio communications for commercial and recreational vessels,” Mr Taylor said.

“The NSW Government today successfully assumed responsibility for very high frequency (VHF) and high frequency (HF) communications.

“The 24 hr monitoring of high frequency (HF) is now being provided by the Sydney Ports Corporation and very high frequency (VHF) monitoring is being undertaken by the port corporations of Sydney, Newcastle and Port Kembla.

“Funds secured from the Federal Government to manage the transition have helped purchase new and upgraded equipment which has been set up with the three port corporations.

“The ports of Sydney, Newcastle and Port Kembla should be congratulated for their efforts in ensuring NSW continues to have a professional marine communications network for the boating community of this State.

“Recognition should also be given to the volunteer marine rescue organisations that also undertake VHF and HF monitoring and continue to provide support for the 27MHz marine radio which is used extensively along the coast.”

The marine radio is a means of general communication on offshore waters and a lifeline for help in emergencies for all those who go to sea including recreational and professional fishers, blue water racing sailors, charter boats and pleasure vessels.

For more information on call the Waterways Infoline 13 12 56 or click here.

Whale Time, Skippers Keep Clear

7 June 2002: Whales are now migrating north along the NSW coast and boat owners are being asked to keep well clear.

Waterways Authority Chief Executive, Matthew Taylor, said today whales were being spotted in increasing numbers off the Sydney coastline.

"The annual northward migration of whales such as humpbacks occurs at this time of year and it is quite likely boaters will see them close in to the shore and in the larger harbours and bays," Mr Taylor said.

"From past experience, some boat owners and skippers can't resist the temptation to get close to these mammals. Whale watching is a wonderful experience but keep your distance."

Mr Taylor said boaters need to be particularly careful not to disturb whales, as harassment may stress them and cause a dangerous situation.

He said the basic rules for skippers to keep clear of whales were as follows:

Power and sailboats must keep at least 100m clear;
If it is a mother with calf, keep more than 300m clear;
When near a whale or pod, skippers should maintain a constant slow speed;
Do not chase or cross in front;
When leaving a whale, skippers should move off very slowly until at least 300m away;
No more than three vessels should watch a whale or pod at one time; and
Abandon all contact with whales at any sign that they are alarmed.
Around, 70 humpback and southern right whales have been reported off Cape Solander south of Sydney since May. Numbers are expected to increase into late June and early July.

For more information on boating safety call the Waterways Infoline 13 12 56.

Cold Water a Killer for Boaters

2 June 2002: Falling water temperatures across NSW increase the risk of hypothermia when boating, which in severe cases can be fatal, according to the Waterways Authority.

The Chief Executive of the Waterways Authority, Matthew Taylor, said cold water had the potential to kill should a person fall in or be forced to swim from a sinking boat.

"Hypothermia contributes, on average, to three boating fatalities each year in this State," he said. "Boaters have a greater exposure in winter to the effects of the elements and need to take extra care when preparing themselves and their craft.

"Immersion in cold water causes the body to loose heat up to 25 times faster than normal which rapidly brings on hypothermia.

"Some signs of hypothermia include intense shivering, slurred speech and a slowing pulse."

Mr Taylor said those at greatest risk were people in small runabouts tackling conditions at or beyond the limits of their craft.

"The risk is just as great a nautical mile or two out in the open sea, or on a country lake or dam," Mr Taylor said.

"The best way to avoid hypothermia is not to put yourself in a situation where you have an increased risk of capsize or swamping. So make sure your boat is appropriate for the conditions, do not overload, check the weather before and during the outing and wear appropriate warm clothing.

"When it comes to clothing one simple test may help. Consider all the clothing you need to wear to keep warm and ask yourself: how far could I swim with all this on?

"In cold water it is difficult to swim any distance, couple that with heavy wet clothes and the absence of a lifejacket and your chances of survival are slim.

"If in doubt about the weather conditions or your ability to swim … wear a lifejacket and that particularly goes for children and poor swimmers."

The Waterways Authority will highlight the issue of hypothermia amongst the boating community at launching ramps and during safety patrols throughout winter.

For more information on hypothermia and boating call the Waterways Info Line on 13 12 56.