Hi all. Can someone advise how long one needs to own a yacht purchased overseas until tax and import duty are not charged? At 17.5%, it's a fair amount to add if I bought from the USA. TIA.
I looked years ago when the AUD was + USD.....
Unless it changed (and I doubt it) it 5% duty and GST and that it - does not matter on term of ownership.
There is no limit.. The taxman has you at every turn. If you however put the boat into charter, you can get a refund on the GST.?
Bugger. 5% import duty plus 12.5% GST on top of sale price.....so regardless of how long I own a boat purchased outside of Australia, I STILL get hit with the above correct?
Select to expand quotewallabyshane said...
Bugger. 5% import duty plus 12.5% GST on top of sale price.....so regardless of how long I own a boat purchased outside of Australia, I STILL get hit with the above correct?
Worse (sorry), but the tax is applied to the landed cost. In other words the end cost is the cost of the yacht +delivery +import then GST 
I've just spent 18 months or more agonizing over a similar mindset.. In the end I settled on buying in Australia. I know there are a lot of 'cheap' boats out there at the moment, but the end price becomes negligitable enough (imo) that it's not worth the effort.
I was thinking if buying OS and starting a 2 year voyage before heading back to Australia. However if I am still going to be slugged the 17.5% what's the point!
I wonder how feasible it would be to just sail the boat into Australia and not clear customs? How would they know?
Select to expand quoteAshleyM said..
I wonder how feasible it would be to just sail the boat into Australia and not clear customs? How would they know?
They might actually watch incoming boats....If not the case, just load up with a tonne of coke to offset the duty?
I exported a boat from Australia once...beside all the pre departure paper work.(which was good since you could get diesel without any taxes ....5000L it was a stink boat) There was a 2 hour inspection with four customs officers. Then 180 miles offshore in the coral sea, a interception from a patrol boat.....all OK just settled on the radio.
So I think they might spot you!
I had a friend who had a basic yacht build in Asia years ago , with out paying the Gov import duties etc he choose to sail it out into international waters
and back into Australia every month .
Also remember when a boats imported into Australia it can be held at your cost as far as fumigation as well as any other problems it wont be delivered over night second hand I talking also if sailed here.
If its shipped here it would be sealed in a bag much like Shaggy's baxter's boat was and fumigated before it left but if there is a slight problem it might be done again here in Oz at your cost
G'day Wallaby,
Australia has a FTA with the US, you may not have to pay the 5% duty, just check with customs. The GST is only 10%, not 12.5%.
Toph is right, the GST is calculated on the gross costs before landing. I shipped mine out, and the freight cost formed part of the GST also.
When I moved back over from nz in 09 I had some new music equipment that I paid gst on in nz.
i shipped it all over and had to go to pick it up from mascot. They asked me how old it was and I told the truth which was only about 6 months old.
They then gave me a gst bill as it was less than 2 years old So I paid gst twice.
I guess for boats its different but the moral of the story is the same. Ato can have a quiet one. cash money where ever possible thanks.
and recently the guys at Polaris marine who lifted my mast out for me had a painting job going of the tugs. I took the job. 27 an hour. I've been self employed for 8 years and every Xmas the works dries up so I thought I'd do some painting. I lasted 8 days. After getting paid I saw that my 27 an hour turned into 18 an hour in the hand. Seriously not worth it so I had to bail. Good old ato thieving from the working man!!! At the same time I pay heaps of tax on my business and minimise this as much as I can.
Im now air BnB our house over Xmas which is great but I hear it's just a matter of time before the ato steps in and takes money off us for that. How to escape the ato. ??
go sailing for ages and don't bring a boat in permanently!
Looking at the customs website, they even calculate the cost of you sailing the vessel over yourself, just so they can extract every last penny from a transaction they have no business nor investment in.
I have pretensions of buying my dad's Lotus 950 when he quits sailing and bringing her over here to Redcliffe, but it looks like it would be a very costly pain in the bumkin.
You can sail for years and never run into a pirate on the water, unless your unlucky, unfortunately as soon as you arrive in a country, you place yourself at the mercy of the most merciless pirates of all, the beaureucrats , (damn I never can spell that word), of the governments public service.
Thanks all. I'm looking at 2nd hand. What if you made a deal with the previous owner and wrote down a heavily reduced sale price on the forms? There has to be some way around it???
The Government in the end decides what the yacht value is going to be 
As soon as your born they got your
How can they just make up a price? Bastards can charge whatever they like in that case.
As an aside , a boat purchased in the US has A.C. electricals not compatable with our 240 volt system. Sure, there are inverters etc. Just a consideration. My next boat will come from the EU even though the US is much more of a buyers market.
But probably more Nauticat 33's in UK/Europe anyway.
And IF I get back to Oz I'll go OS regularly rather than give the system the pleasure of messing with me and my possessions. I'm hoping OS registration is a goer. Anyone know how long an OS registered boat can remain in OZ?
On the international website NOONSITE Australia has a poor reputation regarding bureaucracy/ importation matters.
Good hunting Wallaby.
Select to expand quotewallabyshane said..
How can they just make up a price? Bastards can charge whatever they like in that case.
Wallabyshane, well it gets even worse still..... Customs are pretty good at knowing what items are worth. It is part of their job after all. If hey believe you have done a dodgy with the receipt, that can charge you market value, even if that is greater then what you legitimately paid.
If you sailed her home 'on her own bottom', you will only be charged the cost of delivery from the last port. Even if you sailed her yourself and lived on 50 cent noodles and fresh fish, they calculate what it would of reasonably cost if you were not to go full tight @rse.
BUT... if they delivery home took too long (4 years from memory), they will charge a GST rate based on NEW VALUE...
Quarantine can take anywhere from 30 minutes to a full working day (at over $300/ hour). If they don't like what they find it cannot leave the dock until it is fixed, and you don't want to know what the daily rate there is... If they issue cannot be fixed, then the boast must leave the country immediately (most go to NZ).
Then there is this from ShagsSelect to expand quoteshaggybaxter said..
G'day Wallaby,
Australia has a FTA with the US, you may not have to pay the 5% duty, just check with customs. The GST is only 10%, not 12.5%.
Toph is right, the GST is calculated on the gross costs before landing. I shipped mine out, and the freight cost formed part of the GST also.
Shaggy is right that we have a FTA with the US (for how much longer), but it only applies to US built boats. If you get a European production boat for example, you will need to pay that 5%..
You are walking a well trodden path. You are not the first to come up with these ideas (I know of at least one other.........ME......), and you certainly won't be the last. What you are doing is certainly possible and you might even get a great deal out of it. You may even enjoy the whole importing process. Just go in with all the knowledge and be aware that it is not necessarily a cheap option.
Caveat Emptor
Select to expand quoteHG02 said..
The Government in the end decides what the yacht value is going to be
As soon as your born they got your
That's correct. I enquired years ago too. The duty and GST you will be invoiced will be based on the estimated value of the boat at entry. This means you cannot get an estimate of what your boat will be valued before bringing it (unless they have changed their policy). This is for secondhand boats.
My sister cleared customs last week at Coffs. Her boat is O/S registered. I need to check but I think she is allowed to keep the boat in Australia for 12 months before either having to leave Australian jurisdiction or pay relevant duty and GST. Apparently customs was good with the only unfortunate hiccup that all her stores of tinned food was confiscated due to current policy.
Select to expand quotebrianlara3 said..
Anyone know how long an OS registered boat can remain in OZ?
As of early this year an overseas flagged boat can remain in Oz for 3 years without paying GST (an increase from 12 months). That is of course if you are a bonafide cruiser. If you are an Australian resident I would expect that that time would be reduced to......... zero.
You only have 180 days in the EU don't you before you have to pay VAT.. And you have to leave for a period of 30 days (but I think that has been reduced now)..
I must be Robinson Crusoe on this one, but I'm on the governments side. I don't want to see our country awash with the worlds second hand crap and our domestic market decimated, harbours and boatyards full of discarded worthless junk.
It's happened enough already with FTAs that only Australia takes literally and has seen many industries disappear. The global playing field is not even and a sensible level of taxes and duties on imports is required to protect our way of life yet not inhibit innovation, quality or the value of what we can produce or market here.
I pay a lot of PAYE tax and generally don't begrudge it much at all. It pays for hospitals, infrastructure, education, welfare, pensioners. Protects our lifestyle, democracy, laws, environment and sustainability. It's not perfect and plenty gets wasted, but its not too bad either.
Rant off!
I have to respectfully disagree Free Radical. Whilst I have no problem paying PAYE tax, nor do I have a problem with GST, what I do have an issue with is the blatant, extortionate amounts we are taxed on goods from OS. If something is made here then fair enough however if it is not ie Marlow Hunters, then one should be able to import at a fair price. This would also bring deakerships in line with the rest of the world. It's just plain wrong what the govt can legally charge one. For example, the Hunter I am looking at is almost $500k. For the exact same boat includong the $ conversion, 5% import plus 12.5% GST from the USA , It's STILL $80K cheaper. The thing I need to think about is having it rewired to 240 from 110.
Select to expand quotewallabyshane said..
For the exact same boat includong the $ conversion, 5% import plus 12.5% GST from the USA , It's STILL $80K cheaper. The thing I need to think about is having it rewired to 240 from 110.
No it won't be. You still haven't included delivery and the taxes applied to that. You haven't included airfares over to the states, accommodation and meals (yes you would likely pay for that here too but it is much easier to line a few boats up to view at the same time), and if you plan on sailing her home, you haven't included the cost of preparing her for long ocean passages. And Then there is quarantine. If there is a lot of wood in the boat you run a real risk of an expensive fumigation, degassing the refrigerant and and and and..... Your 80k savings is easily gone.
And as for what FreeRadical said Select to expand quoteFreeRadical said..
I must be Robinson Crusoe on this one, but I'm on the governments side. I don't want to see our country awash with the worlds second hand crap and our domestic market decimated, harbours and boatyards full of discarded worthless junk.
Not only is the country full of second hand junk, it gluts the market and the price falls. There are many examples of boats in Aus that a cheaper then they should be. My current power boat as an example.
I bought an Aussie built 32 footer built for Aussie conditions. A few years later the dollar hit parity with the USD and people started bringing in slightly larger and newer yanky boats landed for less then what mine was worth. Well a lot of these boats are on the market now - mine included, for about half of what they were bought for (I am well aware of the whole supply vs demand. Supply of Great Lake boats now being the problem).
Wallaby, probably the wiring size (aka. AWG...american wire gauge..or B&S...Browne & Sharpe) will be the same. Rather, it's the bigger ticket items. Things like battery chargers, inverters, Onan generators, aircon, changing power points to our unique 3 pin system etc where 'post purchase' costs could bite hard.
Caveat Emptor !
Makes EU purchase a consideration. 240 volt !
But I know, not a lot of Hunters in the EU. Some of the posts on this thread have convinced me that OS registration is worth serious consideration.
Cheers. brianlara the real.
Import duties were initially designed to protect local industry from competition. I'm undecided on the morality of this, but given that we live in a welfare state, I'm inclined to favour tarriffs and import duty over paying people to not work and generally cause trouble.
In this context(sailing) there is no industry to protect. So it's a moot point. It's a cash grab.
what about luxury car tax? not exactly "junk" i dont know the figures but a bmw will cost about 20k in europe. just another thing for the gov to tax while they shift car manufacturing offshore or stop it altogether.
Sydney. Toll roads. F=== me. tolls would be the 2nd biggest expense for me after the mortgage. the AP's are min $40 so theyve always got about $80 of your money when the etoll accounts dip below 40. Ive not stopped using toll roads opting to do the rat rums on my motorcycle. SAving a fortune!
Fines. In Hobart a parking fine is about $30. in Sydney about $140. recently they stopped allowing motorcycles to park in spaces that cars occupy. you can fit 10 bikes in a carspace. law is now you ust occupy a whole space. ridiculous. the beaurocrats do not care about free flowing traffic, or common sense. its all money money money.
I think that most equipment will be dual or selectable voltage. If not I don't think it would be a major expense to replace transformers in some of the more expensive items.
Cable sized for 110V should be good for 220V regardless.
Select to expand quoteToph said...wallabyshane said..
For the exact same boat includong the $ conversion, 5% import plus 12.5% GST from the USA , It's STILL $80K cheaper. The thing I need to think about is having it rewired to 240 from 110.
No it won't be. You still haven't included delivery and the taxes applied to that. You haven't included airfares over to the states, accommodation and meals (yes you would likely pay for that here too but it is much easier to line a few boats up to view at the same time), and if you plan on sailing her home, you haven't included the cost of preparing her for long ocean passages. And Then there is quarantine. If there is a lot of wood in the boat you run a real risk of an expensive fumigation, degassing the refrigerant and and and and..... Your 80k savings is easily gone.
And as for what FreeRadical said FreeRadical said..
I must be Robinson Crusoe on this one, but I'm on the governments side. I don't want to see our country awash with the worlds second hand crap and our domestic market decimated, harbours and boatyards full of discarded worthless junk.
Not only is the country full of second hand junk, it gluts the market and the price falls. There are many examples of boats in Aus that a cheaper then they should be. My current power boat as an example.
I bought an Aussie built 32 footer built for Aussie conditions. A few years later the dollar hit parity with the USD and people started bringing in slightly larger and newer yanky boats landed for less then what mine was worth. Well a lot of these boats are on the market now - mine included, for about half of what they were bought for (I am well aware of the whole supply vs demand. Supply of Great Lake boats now being the problem).
Toph. I just can't see aifare to the BVI's where she is plus some accommodation and food totalling anywhere near $80k. On the upside, it's the perfect place to start seeing as I want to head north and hit the Nth West passage at the start of summer. Just an option and only thinking out loud. Other option is to buy here, head to Europe, Greenland then onto the Nth West passage. All comes down to the f#$/ing tax man.
Select to expand quoteAshleyM said...
Import duties were initially designed to protect local industry from competition. I'm undecided on the morality of this, but given that we live in a welfare state, I'm inclined to favour tarriffs and import duty over paying people to not work and generally cause trouble.
In this context(sailing) there is no industry to protect. So it's a moot point. It's a cash grab.
I'm thinking the same thing. Leave it registered OS and just duck over to NZ when required.
