Boat 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, if recommended changes go ahead following the release of a consultation paper by the Assistant Treasurer, Bill Shorten, today.
The consultation paper recommends changes to the GST legislation to allow eligible supplies of new boats used for recreational purposes to be GST‑free, if the boats are exported from Australia within 12 months of supply. The change was announced as part of the 2010-11 Budget.
The changes will make the purchase of an Australian-made boat more attractive to overseas buyers, which will improve opportunities for boat manufacturers and increase jobs in the sector.
Minister Shorten said "These recommendations should provide a boost for boat builders in regional areas. Overseas buyers sailing in Australian waters will also contribute to greater economic activity in regional ports."
"The Gillard Government is committed to improving jobs in regional Australia and providing increased opportunities for our manufacturing and tourism sectors."
"I encourage interested parties to provide feedback on the design of the measure," the Assistant Treasurer said.
"Stakeholder input will be considered in developing legislation. Stakeholders will also have an opportunity to comment on an exposure draft of the legislation and explanatory material before it is introduced into the Parliament early next year. The change will apply from 1 July 2011."
The consultation paper is available at www.treasury.gov.au and consultation closes on 16 November 2010.
20 October 2010