Overseas boat buyers to sail off GST free
Draft legislation to take effect from 1 July could let overseas leisure craft buyers off paying GST.
The measure announced in the 2010-11 budget would allow boat buyers to sail new Australian-made recreational boats in our waters for up to 12 months without paying GST on the sale price.
The Assistant Treasurer Bill Shorten has proposed that under certain circumstances the period in which eligible boats can be exported from Australia GST free be extended from 60 days to 12 months.
‘The measure will enable buyers of new Australian-made boats to take a sailing holiday in Australia and become familiar with their boat, before either sailing it out of Australia or having it shipped overseas,” Shorten said.
“It also assists Australian boat builders to overcome the disadvantage they face in this market because of Australia’s relative geographic isolation. This legislation should provide a boost for boat builders in regional areas and contribute to greater economic activity in regional ports.”
The Minister has invited comments from the industry on the draft legislation. Consultation closes on 18 February 2011. The exposure draft legislation and explanatory material is available on the Treasury website at www.treasury.gov.au
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