Customs & Tariffs You Should Know When Exporting to Australia | GVE London – Blog

Despite the strong connection between the two nations and both falling under the monarchy, exporting cars from the UK to Australia is still far from the easiest process. However, it is quite tempting because Australians are often looking to import cars from the UK and Europe, making it a lucrative option. That said, it requires a thorough understanding of customs regulations, tariffs, compliance requirements, and basically every aspect of the export process.

In this blog post, we’ll break down the costs and legalities so both buyers and sellers can create an appropriate budget.

Import Duties and Taxes for Exporting Cars From the Uk

Now, in full disclosure, taxes, duties, and compliance requirements are all subject to change and, more often than not, do change fairly often. Well, at least some aspect of them. The information we’re mentioning here is accurate as of the date this blog is written, but if you’re seriously considering exporting cars to Australia, check for any updates whenever you might be reading this to be certain.

Alright, with that out of the way, let’s get to the meat of the matter. Australia applies several taxes and duties on imported vehicles that must be factored into the budget. It goes as follows:

• Import duty is 5% of the car’s customs value, which includes shipping and insurance.
• GST (Goods and Services Tax) is 10% of the total cost of the car, including import duty.
• As of 2023, the Luxury Car Tax (LCT) applies to cars with a GST-inclusive value exceeding AUD 76,950 (approximately £40,000). The LCT rate is 33% of the value above this threshold.

Read Also: Maximising Profit: Strategies for Successfully Exporting Luxury Cars

Vehicle Compliance and Import Approval

Australia’s car culture is still far from a complete free-for-all. Not all cars are eligible for entry into Australia, unfortunately. In order for a car to enter Australian soil legally, it must comply with the Registered Automotive Workshop Scheme (RAWS) or meet individual approval standards.

A major requirement is meeting and complying with the Australian Design Rules, or simply ADRs. These are safety and environmental standards for vehicles as defined by the Australian government. Not meeting them will lead to refusal of entry or some serious modification costs. Another thing to keep in mind is that Australia’s ecosystem is very unique, and they have zero tolerance for biosecurity risks like dirt or plant material. It is best to tie up with a supercar service centre in order to meet all these requirements and ensure your car is ready to enter the country.

All vehicles imported into Australia must comply with the Australian Design Rules (ADRs), which set safety and environmental standards. Non-compliance can lead to the vehicle being refused entry or requiring costly modifications. It is advisable to work with a specialist compliance workshop in Australia to ensure your luxury car meets these standards.

Avoiding Common Pitfalls

On average, we, as a luxury car export business, have often noticed individuals or other businesses trying to export luxury cars and making the following common mistakes, which cost them a heavy penny. So, watch out for:

• Misjudging the LCT costs. You can check on their website if your car comes under the LCT bracket.
• Non-compliant cars being rejected at the border. The most common reason is ignoring compliance regulations. Keep your car spotless and ensure it has the right modifications already done.
• Delays in shipping. These happen, so always plan for the worst and try not to freak out over it.

Conclusion

The process of exporting cars from the UK to Australia isn’t too complicated once you’ve got a solid understanding of Customs & Tariffs like import duty, GST, LCT, and compliance requirements. It still isn’t a cakewalk afterwards, but it certainly feels a lot more doable. If you’d like some assistance, consider speaking with a supercar showroom like GVE London. We’re located in West London and, along with other things like car service, repairs, , modifications and sales, we are also a luxury car export business. Get in touch with us today!