Coronavirus: ‘Give us a (tax) break’, say tourism chiefs

Australians would be able to claim the cost of domestic holidays and business trips in their tax return, under a tourism rescue plan presented to the Morrison government.

Codie Fisher, assistant manager at Stanley Seaview Inn in northeast Tasmania, says ongoing support is desperately needed. The hotel is only 25 per cent full in peak season. Picture: Chris Crerar

Australians would be able to claim the cost of domestic holidays and business trips in their tax return, under a tourism industry rescue plan presented to the Morrison government.

The industry proposal comes amid pressure on the federal government to provide assistance to the beleaguered tourism sector after JobKeeper ends in March.

Backers of the tax deductibility proposal — including peak tourism groups across multiple states — say it’s a fair and effective way to stimulate domestic travel.

The proposal has been put forward by the Tourism Industry Council of Tasmania and supported by similar bodies in other states, including in Victoria, South Australia and Queensland.

“You can’t just leave a whole bunch of businesses to fall off a cliff in March and not expect a lot of trauma; there has to be some form of support,” said TICT chief executive Luke Martin.

“The advantage of the tax incentive model is that it puts money into the pockets of consumers and encourages them to get out and spend it in businesses across the economy. We’ve put the idea on the table within the ­industry and certainly it’s been flagged with the federal government. Everyone is interested.”

Scott Morrison has left the door open to further federal tourism industry assistance, without committing to a specific proposal.

The tax plan would give spending on interstate travel for business or pleasure a level of tax-deductibility, with a cap imposed.

Victoria Tourism Industry Council chief Felicia Mariani said tax incentives could boost the hard-hit business travel sector, with occupancy in Melbourne city hotels stuck at just 40 per cent.

“Our metropolitan cities are absolutely on their knees; Sydney and Melbourne are really struggling because of the lack of interstate travel,” Ms Mariani said.

“So anything that gives an incentive for interstate travel would be welcome.”

TICSA chief executive Shaun de Bruyn also backed the idea. “Some sort of direct market intervention, like tax incentives, would be absolutely welcomed and appropriate,” Mr de Bruyn said.

TTNQ chief executive Mark Olsen said a tax incentive would help “turbo boost” domestic tourism, but wage subsidies needed to continue in regions most dependant on international visitors.

Tasmania’s Mr Martin said state government travel voucher schemes had shown consumers responded to incentives. “People have seen the benefit of government support to fire-up demand, rather than just giving a handout to businesses,” he said.

“Some form of tax incentive … kickstarts a whole bunch of industries on tenterhooks, including aviation, hotels in cities, and the business events sector.”

The tax incentive, which would operate while international borders remained closed, won strong support from operators. “We are normally at about 90 per cent occupancy at this time of year but we are currently doing only about 25 per cent — that hurts,” said Clint Walker, owner of Stanley Seaview Inn in Tasmania’s northwest.

Seaview assistant manager Codie Fisher said while JobKeeper had saved her position, tourism towns needed ongoing support. “It’s important for towns like Stanley, where a lot of jobs are ­reliant on tourism,” she said.

Tourism Minister Dan Tehan declined to comment on the plan.