snowleopard
Well-Known Member
Not wishing to hijack Hinewais' thread, anyone know what the reverse rules are, i.e. when a foreign yacht stays in Australian waters for an extended period?
Aussie tax on EU yacht
- Thread starter snowleopard
- Start date
HinewaisMan
Well-Known Member
Don't worry - I don't feel hijacked
Getting a yacht into Australia can be a real can of worms - all sorts of notifications, quarantine, visa issues etc. Several yachties have been hit with big fines for transgressing what appear to be nit-picking silly rules. SO BEWARE!
Bottom line is generally 12 months - or the length of the Master's Visa - whichever is shorter!
Best bet is to check out the horses mouth:
http://www.customs.gov.au/site/page4260.asp - and don't miss all the links on the left hand sid of the page - all sorts of little landmines lurk in them.
And don't miss Melbourne while you're there - would well recommend the Royal Brighton Yacht Club.
Peter
Getting a yacht into Australia can be a real can of worms - all sorts of notifications, quarantine, visa issues etc. Several yachties have been hit with big fines for transgressing what appear to be nit-picking silly rules. SO BEWARE!
Bottom line is generally 12 months - or the length of the Master's Visa - whichever is shorter!
Best bet is to check out the horses mouth:
http://www.customs.gov.au/site/page4260.asp - and don't miss all the links on the left hand sid of the page - all sorts of little landmines lurk in them.
And don't miss Melbourne while you're there - would well recommend the Royal Brighton Yacht Club.
Peter
Bilgediver
Well-Known Member
Make sure you are familiar with exactly what is allowed on the boat on arrival regarding fruit ,vegetables,meat , dairy products.
A pal arrived with a couple of apples and a potato remaining and had too pay a disposal charge in Fremantle. Dairy products might include chocolate. Check it out.
HinewaisMan
Well-Known Member
And tinned meat!
We came into Gladstone a few years back after a tran-Tasman and they confiscated all our tinned ham (and charged us for the black bin bag to carry it off in).
We then walked 200yards to the local supermarket and bought exactly the same brand to replenish our supplies.
We came into Gladstone a few years back after a tran-Tasman and they confiscated all our tinned ham (and charged us for the black bin bag to carry it off in).
We then walked 200yards to the local supermarket and bought exactly the same brand to replenish our supplies.
snowleopard
Well-Known Member
I'm aware there are some minefields. I heard of one yachtie who picked up a visa form from an Australian consulate in the pacific islands. When he arrived in Australia they told him the form was obsolete and fined him $20,000.
I won't miss Melbourne, I arrived back 3 weeks ago from spending 2 months there!
I won't miss Melbourne, I arrived back 3 weeks ago from spending 2 months there!
zzjfawce
Well-Known Member
Fees and charges
There seems a long tradition of hidden fees and charges in Australia. I blame the banks and I notice they are all having ad campaigns at the moment declaring how each of them is getting rid of all the bear traps that are associated with banking here.
Most of the previous posters seem to be referring to the various penalties that await yachtsmen who get the rules wrong in respect of their entry into Australia (and it seems to me they would be pretty difficult to comply with unless you can send e-mail from your boat, otherwise how do you give the authorities 72 hours notice of your arrival?). The food thing is well known and even applies to carrying some plants to different locations within a state - prohibited to move banana plants north of a line somewhere up near the Sunshine Coast I think (that's a little way north of Brisbane for those in the old country) - and it's all about containg diseases. However, at the airport I have never had a problem with chocolates in a box although I have declared these to quarantine staff. I did have a small drum skinned with a tanned hide confiscated though even though declared. It was a gift for one of the children from family back home but made no difference.
But what about importing a boat? Do you have to pay GST (10%) and is this on some agreed value? What if it's a superyacht or even just merely posh - is there a luxury tax like there is on cars over 80 grand? If it is anything like the byzantine income tax system here, then it will probably be complicated.
There seems a long tradition of hidden fees and charges in Australia. I blame the banks and I notice they are all having ad campaigns at the moment declaring how each of them is getting rid of all the bear traps that are associated with banking here.
Most of the previous posters seem to be referring to the various penalties that await yachtsmen who get the rules wrong in respect of their entry into Australia (and it seems to me they would be pretty difficult to comply with unless you can send e-mail from your boat, otherwise how do you give the authorities 72 hours notice of your arrival?). The food thing is well known and even applies to carrying some plants to different locations within a state - prohibited to move banana plants north of a line somewhere up near the Sunshine Coast I think (that's a little way north of Brisbane for those in the old country) - and it's all about containg diseases. However, at the airport I have never had a problem with chocolates in a box although I have declared these to quarantine staff. I did have a small drum skinned with a tanned hide confiscated though even though declared. It was a gift for one of the children from family back home but made no difference.
But what about importing a boat? Do you have to pay GST (10%) and is this on some agreed value? What if it's a superyacht or even just merely posh - is there a luxury tax like there is on cars over 80 grand? If it is anything like the byzantine income tax system here, then it will probably be complicated.
Major Catastrophe
Well-Known Member
Yes, we taught your tax authorities everything they know. And a word of warning, we have more to pass on.
Oz has a fledgling Labor government but our Labour government has been at it since 1997.
"The 2008 Tolley's Yellow Tax Handbook now stands at 10,134 pages over four volumes, up from 4,998 pages in two volumes in 1997. This year's edition would have stretched to an estimated 10,900 pages and five volumes if information provider and publisher LexisNexis had not changed the page layout and increased the number of words on each page.
LexisNexis tax expert Mike Truman said the size of the new guide demonstrated the complexity of Britain's tax regime."
As to Australian customs, by brother lives in Neutral Bay, Sydney and his cul de sac shares the entrance to the Customs office on the waterfront. He can see almost daily the rummage parties going through visiting foreign yachts and puts it down to the efficiency of protecting Australian shores. Importation of certain foods and vegetable matter is strictly verboten and is admirably illustrated by the TV programme seen on the satellite channel, Living.
As to the OP's request for information, most of the questions and lines of enquiry are here.
And this page says you have basically 12 months without charges.
EDIT: Sorry, HinewaisMan posted similar link.
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snowleopard
Well-Known Member
Next question....
If you decide to stay, or sell the boat and fly home, what are the costs?
If you decide to stay, or sell the boat and fly home, what are the costs?
Major Catastrophe
Well-Known Member
importing a yacht
Yachts are subject to a general rate of duty of 5% based on the customs value (basically the price paid) and 10% GST calculated on the customs value plus international transport and insurance plus the duty.
Privately imported yachts are generally valued using the transaction method of valuation when purchased overseas new or second-hand for export to Australia. Circumstances where Customs may use an alternative method of valuation include such situations as where:
* the yacht was constructed by owner/labour;
* the yacht has been extensively modified since purchase;
* the purchaser and vendor are related parties and that relationship has influenced the purchase price; or
* the original purchase price is too far removed in time.
In these instances the yacht will have to be valued by a marine surveyor in Australia. This valuation will be based on the market value and as such will include elements such as customs duty and GST. Customs will have to deduct these elements plus overseas transport from the local valuation.
Where the yacht is sailed to Australia, overseas freight will be determined having regard to essential sailing costs incurred under the most commercially viable conditions. Such costs would include sailing expenditure necessarily incurred while the vessel is actually sailing (and entering and leaving) those ports of call on the most commercially viable route. It would not include any in port expenditure related to the vessel's period of stopover
. Where supported by sufficient/reliable information, essential sailing costs would also include:
* cost of maps, charts pilot books, light/radio lists, etc.
* crew's hire/wages or forage allowance in lieu
* victualling or food costs (does not include tobacco and alcoholic beverages)
* bunkering or oil/fuel costs.
AndieMac
Well-Known Member
.
snowleopard
Well-Known Member
So presumably they charge on the basis of the cost of sailing from your home port! A bit of a bummer for Brits. I suppose the sensible approach would be to re-register in somewhere like Fiji before arriving. What a strange system.
snowleopard
Well-Known Member
Major Catastrophe
Well-Known Member
Are you are talking to me, because I read and re-read the rules to try and understand them, which are not exactly written in Plain English?
To be honest I can't fathom out whether the transportation costs are included or deducted from the final customs bill.
I keep reading the line "Customs will have to deduct these elements plus overseas transport from the local valuation", which leads me to suspect that they are a deduction from the final cost.
The next paragraphs seem to support that view as I am not sure they would really 'tax' you for "expenditure necessarily incurred while the vessel is actually sailing"
Then they mention 'essential sailing costs', which must be supported by 'sufficient/reliable information'. Well, sufficient and reliable information must surely be for you to substantiate an expense rather than a liability subject to duty and GST.
A very poorly written set of regulations.
Gypsy
Well-Known Member
I shipped my boat to AUS 3 yrs ago. In my case I knew it would stay in AUS so I had to pay the duty and GST (VAT) on entry.
The big question is what value do they use. If you had a recent purchase contract they use that (so long as it is reasonable) but if not they have to determine a value. In practice they expect the owner to provide the information. I used a local importer/broker to make a valuation for customs purposes.
It works like this. They find a typical price for the boat if it was being sold on the local market fully duty and tax paid. From there they work backwards to find the net value of the boat at the port of export (for those sailing to AUS this obviously needs clarification - last port or home port?). This involves back calculating Duty and GST and deducting shipping and 50% of the de-commissioning/re-commissioning costs.
With this export value Customs calculate Duty @ 5%. GST is charged at @ 10% of the Duty Paid LANDED cost so shipping and insurance costs are added to the duty paid value and GST calculated at 10%.
There are some other incidental costs to allow for. You will need a customs broker and AQIS (quarantine inspection) which may come to A$1200 but could be $2000 more if the boat needs internal spraying but this will have been done at entry if it was required and not likely to be needed again if the boat has been in AUS for the 12mths allowed before Duty/GST . The spray requirement is for woodwork bugs and applies to boats which have passed through certain countries, including the Panama.
At first it seems complicated but it is a normal import process whether it is a boat or some other product which is dutiable. There are Customs brokers who deal with this type of boat import/export frequently and they are the best to work with. I can give names of 2 I know of in Sydney if anyone needs the contacts.
All the above is from personal experience of an actual import but you do need expert assistance for your own needs.
The big question is what value do they use. If you had a recent purchase contract they use that (so long as it is reasonable) but if not they have to determine a value. In practice they expect the owner to provide the information. I used a local importer/broker to make a valuation for customs purposes.
It works like this. They find a typical price for the boat if it was being sold on the local market fully duty and tax paid. From there they work backwards to find the net value of the boat at the port of export (for those sailing to AUS this obviously needs clarification - last port or home port?). This involves back calculating Duty and GST and deducting shipping and 50% of the de-commissioning/re-commissioning costs.
With this export value Customs calculate Duty @ 5%. GST is charged at @ 10% of the Duty Paid LANDED cost so shipping and insurance costs are added to the duty paid value and GST calculated at 10%.
There are some other incidental costs to allow for. You will need a customs broker and AQIS (quarantine inspection) which may come to A$1200 but could be $2000 more if the boat needs internal spraying but this will have been done at entry if it was required and not likely to be needed again if the boat has been in AUS for the 12mths allowed before Duty/GST . The spray requirement is for woodwork bugs and applies to boats which have passed through certain countries, including the Panama.
At first it seems complicated but it is a normal import process whether it is a boat or some other product which is dutiable. There are Customs brokers who deal with this type of boat import/export frequently and they are the best to work with. I can give names of 2 I know of in Sydney if anyone needs the contacts.
All the above is from personal experience of an actual import but you do need expert assistance for your own needs.
snowleopard
Well-Known Member
That's what made me think they were going to apply tax on the cost of getting there.
I think that clears it up. The taking off transport costs then adding it back in really comes down to :
Duty is on the value less cost of getting there but GST is charged on the value plus the duty. (Tax on tax - have they been taking lessons from Britain?)
So - about the same as paying VAT on a boat imported to Europe. I guess it pays to arrive with the boat looking really scruffy!
I take it the same would apply whether keeping the boat or selling it.
All I have to do now is persuade SWMBO that it's a good idea
Gypsy
Well-Known Member
As others have said, there is a 12mth period that cruising boats can stay without paying Duty or GST but that period may be shorter if the owner's visa duration is shorter-you need different homework to figure that out.
If you want to sell the boat in AUS or keep it there for a longer period, then the Duty and GST will need to be paid. Alternatively you and the boat could leave the country and return for another 12mth period like we non-EU boats do in Europe but there are no easy 'out and back' solutions here. Most are 10 days sailing away.
If you want to sell the boat the bottom line is whether you are hoping to make a profit or just don't want to continue the journey. Paying the Duty and GST on a good boat may not mean it is overpriced in the local market. Most cruising boats in AUS which are 20y/o or less have been imported and most of those are from Europe (Ben/Bav/Jen/Han) etc and they ALL had to have duty and GST paid on import. It may still be a worthwhile prospect to sell but don't expect to make huge profit.
If you want to sell the boat in AUS or keep it there for a longer period, then the Duty and GST will need to be paid. Alternatively you and the boat could leave the country and return for another 12mth period like we non-EU boats do in Europe but there are no easy 'out and back' solutions here. Most are 10 days sailing away.
If you want to sell the boat the bottom line is whether you are hoping to make a profit or just don't want to continue the journey. Paying the Duty and GST on a good boat may not mean it is overpriced in the local market. Most cruising boats in AUS which are 20y/o or less have been imported and most of those are from Europe (Ben/Bav/Jen/Han) etc and they ALL had to have duty and GST paid on import. It may still be a worthwhile prospect to sell but don't expect to make huge profit.