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Entry Of Motor Cars For Immigrants

The importation of motor cars into Australia is strictly controlled and there are no Duty/GST free concessions available. This means all motor cars will be subject to Duty & GST, which will be calculated on the value of the vehicle. In addition high value motor cars valued above A $57,180 will attract a Luxury Car Tax.
To enable Customs to determine the value of your vehicle, you must supply Customs with your Purchase invoice documents, passport pages, registration papers, service records, modification invoices, Shipping certificate/Bill of lading (PSS will have) & your transit cover/Insurance for your Motor Car (PSS will have).

Duty Tax

Customs Duty Tax rates are payable based on the "Customs Value"

  • Passenger Vehicles LESS THAN 30 Years- 10% Duty Tax
  • Passenger Vehicles OF AN AGE OF 30 Years OR MORE- NONE
  • Other Vehicles (including "off road Four Wheel drive Vehicles")- 5% Duty Tax
  • Campervans and Mobile Homes- 10% Duty Tax

There are two methods of calculating the "Customs Value" on which duty tax is assessed, depending on whether the vehicle was purchased on or prior to 2nd March 1998 or after 2nd March 1998. (PLEASE NOTE THIS IS NOT THE AGE OF YOUR VEHICLE)

VEHICLES PURCHASED PRIOR TO 2nd MARCH 1998

Customs value is normally calculated In the following manner:

  • Take your purchase price and add any modifications or improvements (this does not mean any wear & tear or maintenance repairs), this total amount must be in the currency of origin or the purchased currency on the invoice/receipt.
  • Deduct the depreciation of your Motor Car which is calculated at 5% for the first completed calendar month of ownership & use, Thereafter 1% depreciation for every month of ownership & use up to a maximum of 76%.

    PLEASE NOTE, THE OWNERSHIP & USE IS DETERMINED BY THE IMPORTERS DOCUMENTATION EVIDENCE PROVING THEIR LENGTH OF OWNERSHIP & USE (PURCHASE INVOICES/RECEIPTS, REGISTRATION DOCUMENTS, SERVICE RECORDS ETC & MUST BE IN THE IMPORTERS NAME). THE LENGTH OF OWNERSHIP & USE IS FROM THE LATEST PURCHASED/DELIVERY DATE TO THE EARLIEST DATE THAT YOU OR YOUR MOTOR LEFT YOUR COUNTRY OF ORIGIN.
  • Please now convert this figure (final Purchase price) into Australian Dollars using the currency exchange at the date of export.
  • This is your "Customs Value"

* If you are unable to provide the Documentation or satisfy Australian Customs of the above information, an Alternative method will be used to determine your "Customs Value". This will be determined by using 40% of the current Australian market value of the vehicle, normally using a recognised dealers guide. Where a value for a vehicle cannot be ascertained or is deemed unsatisfactory it will be the responsibility of the importer to obtain a bona fide market value from an expert in the Motor Car industry.

VEHICLES PURCHASED ON OR AFTER 2nd MARCH 1998

Customs value is normally calculated In the following manner:

  • Take your purchase price and add any modifications or improvements (this does not mean any wear & tear or maintenance repairs), this total amount must be in the currency of origin or the purchased currency on the invoice/receipt.
  • Please convert this figure (final Purchase price) into Australian Dollars using the currency exchange at the date of export.
  • This is your "Customs Value"

* If you are unable to provide the documentation or satisfy Australian Customs of the above information, an alternative method will be used to determine your "Customs Value". There are several methods but the "Fall back Deductive method is normally the most appropriate for establishing the customs value where the value of the vehicle is determined at the Australian port (Landing cost). The landing cost would be assessed by an expert and supplied based on the inspection point of importation. This will not include post importation charges but would include any modifications prior to arrival, once the landing cost has been established a deduction of freight and insurance will apply which will determine your "Customs Value". It will be the importers responsibility to obtain or pay for the experts appraisal.

GST (Goods & Service Tax)

The tax payable for GST is 10% of the value of taxable importation for all motor cars being imported into Australia.

Determining the "Value of the Taxable Importation" (VOTI) is based on the "Customs Value" (See above), "Customs Duty Tax"(See above), Freight & Insurance/Transit cover.

EXAMPLE

If a motor car has a "Customs Value" of say A$2000, the "Duty tax" rate was 10% and the freight & transit cover was say A$500 the calculation would be:

  1. Customs Value- A$2000
  2. Customs Duty @10%- A$200 (PAYABLE)
  3. Plus Freight &
  4. Transit Cover/Insurance- A$500
  5. VOTI- A$2700
  6. GST (10%)- A$270 (PAYABLE)

The Total Amount payable for Duty Tax (section 2) is A$200 + GST (section 6) A$270 = TOTAL =A$470 (Based on value being less than the "Luxury Tax" threshold)

LUXURY CAR TAX

Subject to GST there is a "Luxury Car Tax" which is currently 33% and levied on vehicles above a certain value, the threshold is A$57,180. Luxury Car Tax is only applicable if the total VOTI plus 10% GST (Luxury Car Tax Value) exceeds the threshold of A$57,180, (VOTI= Customs Value, Duty Tax, Freight & Transit/Insurance cover).

Luxury Car Tax is payable on the excess difference between the Threshold (A$57,180) and the Luxury Car Tax Value. You must also deduct from the excess 10% GST as this amount excludes GST.

EXAMPLE

Based on a passenger vehicle less than 30 years old with a "Customs Value" of A$51,000 & freight & Insurance/Transit cover of A$3000.

  1. Customs Value- A$51,000
  2. Customs Duty Tax @10%- A$5,100 (PAYABLE)
  3. Freight & Insurance/Freight- A$3000
  4. Value of Taxable Importation- A$59,100
  5. VOTI
  6. GST @10%- A$5,910 (PAYABLE)
  7. Luxury Car Tax Value- A$65,010

(Luxury Car Tax is levied on vehicles with a value in excess of A$57,180)

Calculation for Luxury Car tax is as follows:

  • Luxury Car Tax Value (section 7) =A$65,010 - Luxury Car Tax Threshold =A$57,180 = Excess= A$7830
  • Exclude 10% GST of the excess A$783.00 - Excess A$7830.00 Total Excess = A$7047.00
  • Luxury Car Tax of 33% of the Total Excess A$7047.00 = LUXURY CAR TAX A$2,325.51 (PAYABLE)

Therefore the total "Customs Duty" A$5,100(section 2) + GST A$5,900(section 6) + Luxury Car Tax A$2325.51

TOTAL PAYABLE= A$13325.51

Fuel efficient Luxury Cars

As of 3rd October 2008 fuel efficient luxury cars with a customs value under the fuel efficient car threshold, $75,000 are exempt from Luxury car tax.

This information is meant as a guide only and is correct at the time of writing however, PSS cannot accept liability for any inaccuracies in this information and we always advise our clients to check with the appropriate government departments listed on our website.

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