Buying Car Here / UK, Exporting To Australia

Big Nasty

Friend of mine is thinking of doing the above.

I haven't looked in to it at all my self yet but looking for your thoughts. Initially I said no way as transport and import costs would make it unattractive but his reasoning is as follows:

'If you import to Australia as a temp resident, you can bring in a car for 12 months under a security (10% market value (UK VALUE) and 10%GST) after 12 months you can have it extended upon application and you can even apply for VIA (import approval) once that is secured you can sell it or do whatever you want, they allow you to import but try and discourage you from selling (grey market).'

'So I've decided to go for a 2004/2006 BMW 6 series. In the UK average prices 12,000-15,000GBP , E900 to export it out here and $4000 import fees all in about $25000 (with the strong aussie dollar). The equilivent car here sells for $75,000 so you can see where im going with this, I'm going to own it and drive it for a year or so then sell it and hopefully let it pay for itself.'

Well?

kdevitt

Don't bother.

It was going to cost approx €12k to take my 2002 M3 here - so I don't know where he's getting his $4000 from. The car is an import - it will need to be conformed to Australian standards and pass rigorous and expensive quarantine process.

It will also incur higher insurance as a result of being an import, and you can basically forget about selling it - it will be worth less than a domestic car, and generally viewed with distain. You also need evidence that you've owned the car for 12 consecutive months (including original bill of sale in your own country), and will need to provide explanations for any periods spent outside of the country in the 12 months.

This country is not fond of motorists - and the taxes, tolls and duties reflect that (despite what every returning backpacker says -try $45 / €36 for 2 hours parking beside my office!!)

Big Nasty

Thanks,

How long ago was this?

I presume at the time you were looking into importing the car there 'permanently' but is there the possibility of a loop hole if you import it 'temporarily' then change status later?

See this bit again:

If you import to Australia as a temp resident, you can bring in a car for 12 months under a security (10% market value (UK VALUE) and 10%GST) after 12 months you can have it extended upon application and you can even apply for VIA (import approval)

kdevitt

2/3 months back - you are allowed one personal car import every 5 years.

If you bring the car in on a carnet - which is what you're talking about, you need to present a bond equal to the value of the GST and duty which you would be due to pay if importing it permanently - and that is calculated against the Australian value.

The vehicle must be exported from Australia prior to or on the expiry date of the carnet.

It is a condition of use of a carnet in Australia that you, do not leave the vehicle that is covered by a carnet in Australia while you are not here. Should you do so, this is a breach of the provisions of the Customs Act 1901 and Customs Regulations 1926. Once a breach has occurred, the security amount equivalent to the duty and GST (and Luxury Car Tax (LCT), if applicable) will be called up by Customs.

In my experience, they don't 'do' loopholes here. The government and customs websites have full documentation on what you can and cannot do - good starting point http://www.customs.gov.au/site/page4371.asp

Big Nasty

Tell ya what,

I might get him to sign up and PM you about it coz the information is second hand to me! He's over there the last year so and you may be able to swap helpful advice / contacts with each other.

Coolio?

Svenright

I know what your getting at MCMLXXV,

I am just looking into the samething myself. I am trying to establish if by importing the car on a temp basis, I will avoid having to have evidence of ownership for the past 12 months. ( which I dont have) I will commit to exporting the car back home when i leave the country, however if I end up getting permanent residency then im willing to pay the relevant taxes and charges.

Car prices here are a shocker - think $20k for a 05/06 GTI Golf.

il let you know how i get on!

kdevitt

Svenright wrote: »

Car prices here are a shocker - think $20k for a 05/06 GTI Golf.

Sounds cheap! I paid $32k for an 06 GTi.