Australian Boat Builders Win Big on GST

Submitted by AIMEX, Tuesday 11th May 2010

The Australian International Marine Export Group (AIMEX) the peak body for the Australian Marine Export Industry has been lobbying for several years to get GST removed on boats sold to overseas buyers who wish to sail in Australian waters.

Currently, the GST law requires that the boat be exported within 60 days or GST will be payable. The lobbying for this rule has been a long and drawn out process and last nights budget announcement brings the long awaited news of changes to the GST rules allowing overseas buyers of Australian boats to sail Australian Waters for recreational purposes for up to 12 months without needing to pay GST.

‘Buyers will be able to sail new Australian-made boats in our waters for up to 12 months without paying GST on the sale price, resulting in economic benefits for Australia's coastal regions' said the Assistant Treasurer Hon. Nick Sherry.

The Chartered Accountants, Federal Budget Report 2010, Section 759 states, the Government has proposed that a supply of a boat used for recreational purposes to be GST-free if the boat is exported by a purchaser (from Australia) within 12 months and only used for recreational purposes whilst in Australia.

This issue has been a huge deterrent to buyers and hindered the possible sales and growth for Australian boat building companies. The marine industry provides $1.2 billion in export revenue and is a huge employer.  AIMEX research states that of 9 companies directly canvassed during research specific to this issue they have lost more than $40 million in export sales due to this restriction. This change will only see increases in export sales figures and allow the industry to further flourish.

‘It is of great relief that the treasury have recognized the need for this rule change, once applied, boat builders, the industry and nation will reap rewards in return' said AIMEX CEO MaryAnne Edwards.

The removal of this barrier, due to be applicable from June 2011, will give boat builders the break they have been looking for in these trying economic times.

Recognition must go to AIMEX Director Richard Ward, also of Seawind Catamarans for his significant determination and perseverance in this issue. Richard has spent significant time driving the changes required on this issue in conjunction with AIMEX and the government.

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