Australia has two main taxes that affect visiting superyachts: the Goods and Services Tax (GST) and income tax. Australia uses a self-assessment system, so it is up to owners, operators and their advisers to understand and meet their obligations.
What applies to your yacht depends on how it is used while in Australia. A yacht cruising privately has very few tax obligations, while a yacht that charters or is imported has more. This page gives an overview only. Always seek professional tax advice for your circumstances.
Tax at a glance
| Private cruising (Control Permit) | Chartering | Imported vessel | |
|---|---|---|---|
| GST on purchases in Australia | Included in the price, not claimable | Generally claimable as GST credits | Generally claimable as GST credits if registered |
| Repairs and refits | Can be GST-free (see below) | Seek advice | GST applies |
| Stores and fuel on final departure | Can be GST-free (see below) | Can be GST-free when departing on an international voyage | Can be GST-free when departing on an international voyage |
| GST on income | Not applicable | 10% GST on charter income | 10% GST on any charter income |
| Income tax | No obligations if no income is earned in Australia | Net charter income generally taxable in Australia | Net income generally taxable in Australia |
| Duty and GST on the vessel | Not payable | Only if the yacht is imported | Payable on importation |
| ABN and GST registration | Not required | Required | Required if operating commercially |
Private cruising
A foreign-flagged superyacht cruising privately on a Control Permit has no obligations to the Australian Taxation Office (ATO). GST is included in the price of most goods and services bought in Australia, and is paid at the time of purchase.
There are two important exceptions that can reduce costs for visiting yachts: GST-free repairs and refits, and GST-free stores and fuel on departure.
GST-free repairs and refits
Repairs and refits to a foreign yacht visiting Australia on a Control Permit can be GST-free. This is because the yacht has arrived from outside Australia and will depart for a destination outside Australia.
- This covers repair, refit and maintenance work carried out during the visit, including accident repairs and routine maintenance.
- The work should be completed within the period of the Control Permit.
- The owner or Master provides a copy of the Control Permit to the repairer or refitter. ATO rulings refer to this document as a cruising permit.
- Provided there is no information to the contrary, a copy of the permit is enough evidence for the repairer to treat the work as GST-free. The repairer keeps the copy with their usual tax and accounting records.
- The goods and services must be supplied by the repairer or refitter.
More information: ATO ruling GSTR 2005/2.
Note that a superyacht cannot keep its international voyage status while in dry dock, which may affect its customs status. See Clearance Options and Refit & Haul Out.
GST-free stores and fuel on departure
Ship’s stores (such as food, beverages and other provisions), fuel, lubricants and spare parts can be bought GST-free when the yacht is departing on a voyage to a destination outside Australia.
- While a yacht is cruising Australia on a Control Permit, its trips between Australian ports are treated as domestic voyages, so GST applies to stores and fuel bought along the way.
- The international voyage begins when the yacht departs its final Australian port with a final certificate of clearance naming a foreign port as its destination.
- Stores, fuel and spare parts supplied after the appointment for departure clearance is made (usually within four days of departure) are generally accepted as being for the international voyage.
- Fuel excise duty may still apply. Duty-free bunker fuel is generally limited to ships of 400 gross tonnes or more used in carrying on a business.
What suppliers need
To supply GST-free, your supplier needs evidence that the yacht is departing on an international voyage. This is ideally a copy of the final certificate of clearance. If that is not available, suppliers can rely on:
- a copy of the Control Permit with an imminent expiry date, or temporary import documents
- a copy of the purchaser’s passport
- a signed declaration that the goods are stores or spare parts for use on a voyage to a destination outside Australia.
More information: ATO ruling GSTR 2003/4 and ATO: Bunkers free of duty.
Captain’s Tip
Visiting captains recommend arranging a contract with a fuel supplier and bunkering just before departing Australia, so the fuel can be supplied GST-free for the international voyage.
Chartering
A yacht that charters in Australia must register for an ABN and GST, charge 10% GST on charter income and may need to pay Australian income tax on net charter income. GST paid on business costs such as fuel, provisions and repairs can generally be claimed back. See Chartering in Australia.
Duty and GST on importation
A yacht that is imported (entered for home consumption) pays customs duty and 10% GST on importation, unless a concession applies. Operators registered for GST may be able to defer the GST payable through the ATO’s Deferred GST scheme. See Clearance Options.
Crew
The tax obligations of crew members working on a superyacht in Australia vary by vessel, employment arrangements and residency. Seek specific advice.
Common questions about taxation
Do we need to register with the ATO if we are only cruising privately?
No. A foreign-flagged yacht cruising privately on a Control Permit, and earning no income in Australia, has no obligations to the ATO.
Is our refit GST-free?
Repairs and refits to a foreign yacht on a Control Permit can be GST-free. Give the repairer or refitter a copy of your Control Permit, and make sure the work is completed within the permit period.
Can we buy fuel and provisions GST-free?
Yes, when the yacht is departing Australia on an international voyage. Stores and fuel bought for cruising within Australia include GST. Plan to bunker and provision just before your final departure.
Can our guests claim back GST on purchases?
Guests departing Australia may be eligible to claim a GST refund on some goods through the Tourist Refund Scheme, subject to conditions. Crew are not eligible.
What if we decide to charter?
Chartering changes your tax obligations, including GST on charter income and possibly income tax. See Chartering in Australia.
More information
- Australian Taxation Office
- ATO ruling GSTR 2005/2: GST-free repairs to goods from outside Australia
- ATO ruling GSTR 2003/4: GST-free stores and spare parts for international voyages
- ATO: Bunkers free of duty
- ABF: Tourist Refund Scheme
Last reviewed October 2026. This page is general information only and is not tax advice. Always seek professional advice and confirm with the Australian Taxation Office.
