|REMINDER: Commercial fishing new share linkage and management arrangements came into effect on 1 December 2017.|
The NSW Government’s Commercial Fisheries Business Adjustment Program introduced linkages between shares and catch or effort. Fishers have the ability to invest in their businesses with more certainty than ever before. Importantly, share linkages have been tailored to each share class.
Under the Business Adjustment Program, some commercial fishers purchased more shares to secure their level of business activity, while others chose to sell their shares and exit the industry. There is a range of assistance measures available to help industry through this transition process.
|1 December 2017|
|23 February 2018||Market rules amendment: Payment period extended to 23 February 2018 for payments due to RAA. Visit Market rules for more information.|
On 1 December 2017 the new share linkage and management arrangements commenced in most share classes. We encourage all shareholders to familiarise themselves with the changes and make sure their business/es are ready.
The Independent Allocation Panel (IAP) has been established to provide advice to the government on the criteria to be used in allocating new species and effort quota shares in four fisheries.
The lAP process and consultation is being managed by Grant Thornton Australia Ltd. Further information on the panel and updates are available on the Grant Thornton website.
The original rule on share caps needed to be expanded for two reasons. First, in some share classes, the highest level of deficit was still quite low and using that as a cap would have severely constrained trading. The second reason was that some share classes had no one with any deficit and would therefore have no cap. Those classes have been capped at 125 shares to allow trading but prevent large aggregations using subsidy.
Notice to extend payment by buyers under the Market Rules
Under the Market Rules and the Notice of Market Rules Amendment published on the Website on 22 October 2017, buyers must pay the purchase price for each transfer of shares within 90 days of the issue of a Confirmation by DPI. Confirmations were issued on 28 June 2017.
To allow further time for issues relating to income tax to be resolved with the Australian Tax Office, DPI is extending the period for payment of the purchase price of shares purchased in the Subsidised share trading market from 90 days to 240 days from the issue of a confirmation. This means buyers will have until 23 February 2018 to pay the purchase price to the RAA.
Interest on late payment of the purchase price will not start to accrue until the 240 day period has ended.
This extension of payment terms operates as an amendment to clause 8.4 of the Market Rules.
The Australian Taxation Office (ATO) has confirmed, based on the Market Rules and Supplement No. 6. their view of the tax position of the Buyers and Sellers. Broadly, the ATO considers the following as being applicable with regards to the subsidy:
1 The subsidy is a capital receipt in the hands of the seller; and
2 The buyer is not subject to income tax on the subsidy.
This means for buyers the subsidy is not included as assessable income when received and will not form part of the cost base of the shares if they are disposed of in the future.
For sellers the subsidy will form part of the consideration received for the disposal of their shares.
The ATO has also offered to provide technical assistance regarding this matter should you require further clarification. Please call 13 2866 quoting reference 1051264668049 to obtain further assistance.
Commercial fishing licences - fees due by 31 July 2017
Renewal notices and reminders have been sent to all commercial fishers with fees due by 31 July 2017. The license renewal fee is $304. Please be aware that if a licence has not been renewed by 31 July 2017, the license will expire and the fisher will need to re-apply for a new license at a cost of $622.
Fishing boat licences
The requirement to hold a boat licence has been extended to July 2018, which is why renewal fees for fishing boat licences (FBL) have been waived for the period 1 July 17 to 30 June 2018. However you must complete the FBL renewal and return to Fisheries Business Services. Providing there are no outstanding fishing boat fees a new FBL card will be issued.
Please call Fishing Business Services on 1300 720 662 if you have any questions regarding your renewal.
Management fees were determined/calculated on shareholdings as at 31 October 2017. There is one installment of fees which will is payable on 21 January 2018, 60 days after issue.
Fishers are encouraged to contact Fishing Business Services on 1300 720 662 if they would like to discuss this further.