The Rudd Government will amend the GST legislation to help Australian recreational boat builders compete with international manufacturers.
The GST law will be amended to allow boats used for recreational purposes to be sold in Australia GST‑free if the boat is exported by the purchaser within 12 months and only used for recreational purposes whilst in Australia. Currently the law requires that boats be exported within 60 days.
"These changes will allow Australian boat builders to overcome disadvantages they face relative to foreign competitors, who can more easily sell boats for export tax‑free," the Assistant Treasurer said.
"This change will make the purchase of an Australian-made boat more attractive to overseas buyers."
"Buyers will be able to sail new Australian-made boats in our waters for up to twelve months without paying GST on the sale price, resulting in economic benefits for Australia's coastal regions."
"It should provide an economic boost for boat builders in regional areas and overseas buyers sailing in Australian waters will also contribute to greater activity in regional ports."
"There will be public consultation on the details of the measure before the development of draft legislation."
"This is an example of the Rudd Government's commitment to a tax system that encourages the competitive flair of Australian businesses."
The measure will take effect from 1 July 2011 and is subject to the unanimous agreement of the States and Territories.