1 February 2011

Release of draft legislation on GST-Free Export of Boats

Australian boat manufacturers and coastal tourism operators will benefit from proposed changes to the GST allowing boat buyers to sail new, Australian-made recreational boats in our waters for up to 12 months without paying GST on the sale price.

Assistant Treasurer, Bill Shorten, today released for comment draft legislation to extend, from 60 days to 12 months, under certain circumstances, the period in which eligible boats can be exported from Australia GST-free.

"The measure will enable buyers of new Australian-made boats to take an extended sailing holiday in Australia and become familiar with their boat, before either sailing it out of Australia or having it shipped overseas," Mr Shorten said.

"It also assists Australian boat builders to overcome the disadvantage they face in this market because of Australia's relative geographic isolation."

"This legislation should provide a boost for boat builders in regional areas and contribute to greater economic activity in regional ports."

This measure was announced in the 2010-11 Budget. The change is to take effect from 1 July 2011.

The exposure draft legislation and explanatory material is available on the Treasury website at www.treasury.gov.au

The Minister is particularly interested in hearing the views of the boat industry on the draft legislation.

Consultation closes on 18 February 2011.