What costs are involved?
There are many charges associated with importing a vehicle from overseas. To give you an idea, a $30,000 car made before 1 January 1989 leaving from Los Angeles and being delivered to Port Kembla in Sydney could cost approximately $4,400 excluding taxes, duties, GST and vehicle compliance and registration.
Charges include:
- Shipping and customs costs. Shipping costs include the costs of customs both in the country you're exporting from and in Australia, quarantine inspection fees, cleaning, international freight and port service charges.
- Taxes and duties. These include the luxury car tax of 33% on vehicles with a value greater than $60,316 ($75,375 for fuel-efficient vehicles) and GST. You'll also pay duty for the vehicle, which depends on the type and age of the vehicle. A vehicle under 30 years old will incur 5% duty and 10% GST.
- Compliance costs. Many cars will need modifications to make them roadworthy in Australia. This can include disabling new light globes and re-gassing the air conditioner.
- Registration and insurance. Just like with any car you'll need to get this registered once it's compliant and ready to drive. You'll also need to pay stamp duty and insurance.
You'll need to consider the documentation needed for an import, the timeframes needed to receive permits, the requirements of each government agency involved and whether or not the car you're importing will need modifications carried out to make it legal to drive in Australia.
If the car you are buying from overseas isn't for sale in Australian currency, then minimising the costs here could be of benefit to you. Using a low cost international money transfer option, such as OFX, could save you a considerable amount of money.
