Australian Taxation for Superyachts
GST Free Repair
The owners or masters of yachts cruising Australian waters on cruising permits will be able to obtain Goods and Services Tax (GST)-free repairs by presenting their cruising permits to their repairers/re-fitters. The Australian Taxation Office will not require the presentation of documents showing a prior arrangement of repairs or refits. GST-free repairs/refits include any repairs to the yachts which are done during the course of their visits to Australia. Examples of these include:
°Repairs necessitated by accidents in Australia; and °Routine maintenance
To be GST free the supply of goods must be provided by the supplier of the repairs to the vessel. The repairer can make a GST-free supply of the repair by retaining a copy of the cruising permit. In addition to the cruising permit, the repairer will retain the financial records ordinarily required for taxation and accounting purposes.
Import Duty Free
Item 35 of schedule 4 to the customs tariff act provides for the duty-free import of parts to be installed on vessels which have a gross construction tonnage exceeding 150GCT.
Import GST Free
ATO ruling 2005/2 which deals with GST as it relates to supplies of goods and services in the repair, renovation, modification or treatment of goods from outside Australia whose destination is outside Australia. This ruling provides scope for goods & services to be supplied directly to an international vessel during a refit period GST free, providing the supplier has the evidence on hand to support the claim. In plain English: a copy of the Customs Control Permit, or the import declaration demonstrating that the vessel has been temporarily imported will suffice (refer point 82). Import GST must be paid up front however. Refer below;
In the case of imported goods, the importer should be a GST registered business. We (Superyachts 153°) can claim the import GST back on our quarterly Business Activity Statement We will provide a refund of the GST paid when quarterly BAS refund has been received.
Taking on Excise Free Fuel
Yachts departing Australia are eligible to take on Excise and GST free fuel. Most Australian fuel suppliers will be experienced with supplying Excise and GST free fuel. An ABF Form 43 Request to load goods needs to be completed, submitted and approved by ABF prior to taking on Excise and GST Free Fuel. Superyachts 153° will complete and submit Form 43 on your behalf.
Again, this is only applicable for yachts departing Australia.
Your last 60 days
Any purchases made for the yacht within your last 60 days in Australia can be GST free, however, you will need the supplier to provide the goods GST free and their invoice will need to reflect your international address. You will also need to provide documentation such as your Control Permit to the supplier to show your intended departure date from Australia so they can show why no GST was charged in the event of a Tax Audit. This is only applicable for goods that are leaving the country. GST charged on services provided is still applicable, as the service will happen within Australia.
Many provisioning businesses may not be setup for this, so prior notice could be required.