Import tax (GST)and Customs Valuation in Australia

JLAUST · Nov 22, 2014

Once again Capt J and Older Boater thank you for your comments I agree with you Capt. J that of course a Survey valuation is important, and Older Boater I apologise if I made you feel like I was lashing out as you put it? I was simply just putting forward a response to comments. You seem a little sensitive to be commenting on my page ? To be fair I too can be a little sensitive to what I see as unfair Taxes so please accept my apologises. My Lawyers here tell me after discussions with Customs Representatives a Detailed US survey valuation on the initial purchase/ price of the Vessel will contribute to its valuation in Aust with a second after Refit as Capt J suggested.
When it came to the actual valuation process in Australia? Once again" very cagey. They wouldn't' even comment as to how exactly they do it apart from saying a Customs Surveyor will asses the Vessel on arrival in Port based on a Estimated Market Value this being only one of many tools in their kit? as for what those tools were they wouldn't say? We asked is there some sliding rule? Inflation based? Market demand,LOA.Tonnage etc etc No one apparently wanted to be specific except to say What would be a unique vessel in Australia after Refit they suggest the "Just wait and see option". I find that ridiculous?
Creating another big concern. Their complete belief in their Surveyors as gospel ... The difference between various Marine Surveyor's valuations can be extreme. Its in my opinion naïve to think they are all somehow on the same page and working with the same skills and motivations? Insurance Companies, Banks, Customs, Brokers, Buyers all have dramatically differing opinions as to the value of most asset's why wouldn't Marine Surveyors be any different?.We also were advised by a experienced Importer be prepared for hit of at least 50 + after all is said and done refit/transportation costs and revalue etc etc.Im not sure if he was talking through his hat with the limited information I was able to share with him ( Survey still in progress and awaiting Cygnus audio Gauge to be done etc) but it is a worry.

I also note 10 % seems to be of little consequence on the grand scale of things according to some of the comments I've seen here but
as a hard working already Heavily Taxed individual and Businessman already the "Principle"" of being unfairly taxed on something myself with family and friends will personally will get some small enjoyment out of is totally offensive.GST is nothing more than a Fed Govt cash grab bought in 15 years ago and nothing more.Im still paying increaseing State Tax's each year.
My rant it seems is getting a little political now I know. I understand the realities of the world and taxes that need to be payed but I will be "Dammed" if I will give them a cent more than I'm forced to .
No matter how you want to package it Im quickly coming to the conclusion we are all "Still"being taken advantage of especially in the Pleasure Boat industry apart from (Off shore registered Cruise lines ) After 15 years out of the game on a much larger scale and Vessel Im starting to wonder if its still worth all the Drama and headaches...Anyway ..Just boarding a flight ....so till next time
ps Thank you Savasa for your your suggestion to get something in writing. Unfortunately they declined

RER · Nov 22, 2014

I have a difficult time understanding your level of concern over what appears to be a relatively minor expense in the grand scheme. I mean, no matter how well planned, you will be confronted by countless surprises on this project which will cost many, many, times more than any import fees. Nobody wants to pay more tax or duty than they should. However I hope spending more than you anticipated in the private sector is appealing to you.

olderboater · Nov 22, 2014

The more you rant the more you show the truth. You went through all that to find out exactly what I cut and paste here, that it's going to be valued based on a marine surveyor in Australia. Like all customs matters I'm sure there is an appeal process but generally you have to pay as valued and then appeal if worth the effort to you. As to how you expect them to give you an amount of a boat that actually hasn't even been built yet, I have no idea. Of course they can't commit to anything. What you're importing doesn't yet even exist in the manner it will at that time. Maybe you'll get some incredible job and up it's value far more than you spend or maybe it will be the normal and the value won't go up nearly as much as you spend. How could they be expected to say now?

But then comes your political rant that explains what this is all about. As I said earlier, it's not understanding the rules, it's that you don't like them. It's unfair, you're being taken advantage of, oh whoa and behold. Well, someone feels all taxes are unfair. I paid my property taxes yesterday. Oh unfair. I shouldn't be penalized for having an expensive home. What sense does it make to say something like that. Australia laws are designed to encourage doing things locally. But to tax someone on a multi million dollar luxury they're importing obviously makes sense to them. You started wanting to know the rules which were available from their website. Now you've been told them by me, by your lawyers, by whoever else you've talked to. You now appear to understand them but now they're unfair.

You don't like the answers you get, don't post in a public forum asking questions. Am I too sensitive for you? Probably so, as you've made your agenda clear now. It's to whine about an "unfair" tax. Take that to a political forum. Now you got your answer in post #6 eight days ago and your lawyers have now confirmed it. As RER said, you think being overtaxed is an issue, just wait until you get into the cost of the refit and each element costs more than you anticipated. Then you're hoping the Australian surveyor will tell you how much you overspent and appraise it for much less.

I honestly do wish you good luck in this endeavor. But you're already upset and ranting and you haven't even gotten to the hard part yet.

Capt J · Nov 22, 2014

I really cannot see about complaining about a 10% tax. It's really trivial compared to what a lot of other countries charge to import a yacht. Many hover around 50% of its value.

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Import tax (GST)and Customs Valuation in Australia

JLAUST Guest

RER Senior Member

olderboater Senior Member

Capt J Senior Member