Australian Customs heavily regulates the importation of vehicles. Each vehicle imported must have an Import Approval Permit completed and approved by the DoTARs government Agency. A quick overview of the taxes and duties payable to the Australian Customs service as follows:
| Vehicle Type |
Duty |
GST |
| Vehicles over 30 years old, and Motorcycles |
0% |
10% |
| New and used Vehicles up to 30 years old |
10% |
10% |
| Four Wheel Drive Off Road / Commercial Vehicles |
5% |
10% |
The Customs Value
The Customs value of your vehicle can either be based upon the Original Country Purchase price (which may be subject to depreciation allowance) or rated on the Australian as landed value, which in some cases could be as low as 50% of the current Australian market value. Duties and Taxes are calculated from the Customs value of your vehicle.
Import Duty and GST Calculation
Once the Customs value of the vehicle has been determined, the Duty is applied to the Customs value. The GST component will be applied to the Customs Value and the Import Duty applied.
Example 1. You have purchased a classic 1966 Chevrolet Corvair from the USA, with the Original US dollar value of US$ 9,000. The vehicles Australian Customs value is AUD$ 8,000. Since the car is over 30 years old, import duty is not charged (0%), and GST is at 10%.
The calculation is as follows:
| Customs Value |
Duty |
GST |
|
| AUD$ 8000 |
No Duty |
10% |
AUD$ 800 |
Example 2. You have purchased a 2005 Jeep Laredo from the USA, with the original US dollar value of US$ 21,960. The vehicles Australian Customs value is AUD$ 28,920. As this is a new car, import duty will be charged at 10%, then GST applied on the sub-total (the Customs value and the import duty):
The calculation as follows:
| Customs Value |
Duty |
GST |
|
| AUD$ 28,920 |
10% |
10% |
AUD$ 6073.20 |
The Luxury Car Tax
If the total GST inclusive value of your vehicle is in excess of AUD$ 57,009 (this figure is set by the Australian Tax Office annually), your vehicle either commercial or private use may incur Luxury Car Tax (LCT). Luxury Car Tax is an additional tax, leived at 25% on the amount in excess of a certain threshold, which generally relates to cars with a customs value of over AUD$ 42,999.
Depreciation Allowances
There may be a depreciation allowance upto 76% if you have purchased your vehicle prior to March 2nd 1998.
Seek Advice From Customs And Reputable Import Companies
There may be specific laws, duties and other charges that may apply to certain scenarios of imports and exporting vehicles. Before contemplating any vehicle import, check with Customs on 1300 363 263, or visit the Australian Customs Service website - then seek the services of a competent vehicle importation company, listed under Services, Vehicle Import and Export in our Classic Car Services and Trade Directory.
Compliance
If your car is less than 30 years old, it will require Compliance Certification. Typically, compliance includes (but is not limited to) the following:
- Child restraint anchor points.
- Replace driver side door mirror to correct standard.
- Weighbridge certificate.
- Engineer certificate (not all vehicles).
- Imported Blue Slip (ensures roadworthiness for RTA).
- Personal import compliance plate.
- Roads & Traffic Authority (RTA) Visual Identification Unit inspection
(not all vehicles).
Again, we strongly suggest you seek the services of a competent company able to assist you with meeting the compliance issues.
Also see: Classic Car Insurance |
