Superyachts, expect to be taxed for entering Australian waters

The Australian government is to increase the rate of Carbon Tax applied to vessels operating in Australian waters, as of 1 July 2013. Bunker duty and carbon tax is charged for all vessels who conduct a coastal voyage within Australian waters, and if a vessel purchases fuel and or oil within Australian waters for the purpose of a coastal voyage.

The monetary rate of the Carbon Tax will increase as per Table A below. Duty on bunkers is paid in full at AUD 38.143 cents/litre and the rebate amount will be diminished by the Carbon Tax deduction as per Table B.

Table A: Carbon charge rates for diesel and other liquid fuels

1st July 2012   6.21

1st July 2013   6.521

1st July 2014   6.858

Table B: Fuel Tax Credit (bunker duty rebate) rates after Carbon Tax rate deducted

1st July 2012   31.933 (38.143 - 6.21 cents per litre)

1st July 2013   31.622 (38.143 - 6.521 cents per litre)

1st July 2014   31.285 (38.143 - 6.858 cents per litre)


SuperyachtNews.com contacted Australian Customs through Inchcape Shipping Services (ISS) Australia for clarification how the measures would affect superyachts.

ISS confirmed that any superyacht that is imported into Australia, either permanently or temporarily, will be subject to all local taxes and this will include the carbon levy.

‘International’ voyages will not be subject to any duty, but if an international voyage breaks off into a coastal voyage (by moving from Australian port to Australian port) the vessel will be subject to all local taxes, including the Carbon Tax. 

ISS’ Bradley Luu did stipulate however, that there would be a degree of pragmatism applied to superyachts navigating Australian waters because the variety of vessels that comprise the superyacht fleet make unilateral application impossible.

To view a comprehensive summary of requirements for superyachts entering Australian waters click here.

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