There are a few hurdles to jump over when seeking to import a car into Australia. Australia is known for its tight border controls, and importing a car is no different. This article will detail the main things to consider in the process as well as potential problems that may arise.
Taxes
The taxes surrounding importing a car depend heavily on what car it is. For example, vehicles that are over 30 years old will have to pay 10% goods and sales tax, but no import duty. On the other hand, cars younger than 30 will need to pay both the 10% goods and
sales tax as well as 10% import duty.
Goods and sales tax remains the same regardless, but you could only be faced with 5% import duty if the vehicle is a 4×4, commercial or off-road vehicle. The duty in question will be calculated based on the car’s original price paid, or the value of the car upon arriving in Australia. Fortunately, the latter valuation method often tends to be less than the actual resale value of the car.
Shipping
Shipping a car can be a bit of a nightmare, with the time and cost of course the main issue here. To get a car shipped from USA for example, there are quotes of thousands of dollars and around a month to deliver. These vary, and there are companies that ship from the UK to Australia for under £1,000, but the transit time can be up to 6 weeks. Despite the possible logistical problems of having the shipping company attain your car, the actual options available can be often surprisingly accommodating, with the possibility to deliver the car to any of the major ports, such as Fremantle, Sydney, Brisbane, Adelaide or Melbourne.
Formalities
Before organising shipping or paying duty taxes, there are some administrative requirements to fulfil. A Vehicle Import Requirement (VIA) is necessary to be obtained from the Australian Commonwealth Department of Infrastructure and Regional Development. This will mean paying a $50 application fee to complete the online form and awaiting its response. The reply will likely be an approval, but with the possibility of some conditions regarding the use of the vehicle.
It is advised that if the car is used then it should be steam cleaned to remove the possibility of not passing quarantine, as well as checking for asbestos. This is the stage when an import declaration is lodged along with the appropriate taxes.
An arrangement for an inspection must be made with the Department of Agriculture along with lodging a quarantine entry. As we can see, this can be a lengthy process.
Small businesses
Small businesses may come across more problems when importing vehicles. Whether you are a sole-trader looking for a business car or you want to offer a company car as part of your employees’ benefits, the costs quickly add up.
When factoring in not just the car but the taxes and duties that come with importing, it may be that you need to finance it through a business loan.
Instead of relying on the long process of being approved by a bank loan, an online vendor is often preferred. There are comparison websites for small business loans in Australia, and these may give a good overview of which online vendors will give loans specifically for vehicle purchases, as well as detailing the average response time for an application among other metrics.
Overall, the process of importing a car into Australia is reasonable. There are some taxes and administrative duties to complete, as expected. However, the problems that arise tend to be when the vehicle is not deemed roadworthy (i.e re-gassing the air conditioner), or is quarantined because of contamination. There are some other costs to consider, such as insurance and luxury vehicle tax, and quite often these lead to people underestimating the scope of the process, and turn to credit in order to finance the endeavour.
