From our Blog
Car Import Rules and Taxes for Australia: What to Know Before Shipping from the UK
Importing or shipping a car from the UK to Australia involves more than just shipping logistics—it requires adherence to strict import rules and an understanding of applicable taxes. Failing to comply can cause significant delays, fines, or even vehicle rejection.
Table of Contents
This comprehensive guide about car import rules and taxes for Australia outlines all the critical import regulations and tax obligations you need to know before shipping your vehicle, ensuring a smooth and legal import experience.
Australian Car Import Rules Overview
Key points include:
- Vehicle Import Approval (VIA) Mandatory: You must obtain approval from the Australian Department of Infrastructure prior to shipping. No car will be allowed entry without it.
- Compliance with Australian Design Rules (ADR): Vehicles must meet local safety and emissions standards, including modifications to lighting, seat belts, and speedometers if necessary.
- Vehicle Age: Cars older than 25 years can be imported under the ‘classic car’ provisions (25-Year-Rule Scheme).
- Quarantine and Biosecurity: Thorough cleaning of vehicles is required to prevent invasive pests. The Department of Agriculture, Fisheries and Forestry (DAFF) inspects all imports.
Contact SEA GO International today for expert guidance and a seamless experience!
Australia has stringent rules governing vehicles brought into the country to protect safety, environmental standards, and consumers.
Taxes and Duties on Imported Cars
When importing a vehicle from the UK to Australia, several taxes and duties apply which contribute to your overall import costs. The primary import duty is set at 5% of the Customs-assessed value of the vehicle, which includes the vehicle price and shipping charges.
In addition to import duty, Goods and Services Tax (GST) at 10% is applied on the combined total of the vehicle’s value, import duty, marine insurance and shipping costs. This means GST is calculated on the entire landed cost, including duty and freight.
If the vehicle’s value exceeds the Luxury Car Tax (LCT) threshold, a further tax of 33% is levied on the amount above this threshold. For the 2025-26 financial year, the LCT threshold stands at AUD 80,567 for standard vehicles and AUD 91,387 for fuel-efficient vehicles consuming less than 5 litres per 100 kilometres. The LCT amount is calculated based on the total value of the car plus GST, duty, shipping, and insurance.
Contact SEA GO International today for expert guidance and a seamless experience!
It is essential to carefully budget these taxes and consult up-to-date government tariff tables or professional customs brokers to ensure accurate cost estimation before import.
Contact SEA GO for an estimated tax calculation.
Calculation Tools and Budget Planning
Several online calculators are available to help estimate the import duties and taxes payable based on your vehicle’s declared value, shipping costs, and vehicle age. These tools are invaluable for accurate budget planning and help minimise the risk of costly surprises upon arrival in Australia.
How to Minimise Import Taxes and Duties
- Purchase vehicles below the luxury car tax threshold if possible.
- SEA GO can provide lower Customs Valuation for cars that have been owned for longer than 12 months, resulting in lower import taxes.
- Explore exemptions for classic cars or special categories.
Documentation for Tax Compliance
Document submission is critical for tax processing:
- Purchase invoice or receipt
- Shipping invoices and proof of freight charges
- Vehicle Import Approval
Contact SEA GO International today for expert guidance and a seamless experience!
Penalties for Non-Compliance
Failing to adhere to import rules or neglecting to pay required taxes can result in severe penalties, including fines, seizure, vehicle return to its origin country, or even destruction of your vehicle by Australian authorities.
Insurance Requirements for Imported Vehicles
When importing a car from the UK to Australia, it is essential to secure appropriate insurance coverage for the entire journey. Standard UK motor insurance policies do not typically cover international shipping risks. Importers should therefore purchase comprehensive “full risk” marine insurance that covers damage, theft, or total loss while the vehicle is in transit.
Contact SEA GO International today for expert guidance and a seamless experience!
SEA GO can offer such insurance policies. Obtaining insurance not only protects your investment but also provides peace of mind during the often lengthy shipping process.
Temporary Import Options: Using a Carnet de Passages
For individuals intending to temporarily bring a vehicle to Australia, such as tourists or short-term residents, the Carnet de Passages en Douane (CPD) offers a feasible solution. This international customs document allows temporary import of vehicles without paying import duties or taxes, valid for up to 12 months. However, CPD usage comes with conditions: the vehicle cannot be sold, hired, or modified during its stay in Australia, and the importer must provide security deposits covering potential customs charges.
Contact SEA GO International today for expert guidance and a seamless experience!
Travelers should obtain a CPD from motoring organisations in their home country before arrival and comply with Australian motor vehicle insurance and registration laws during their stay. Cars imported under CPD must be re-exported within the validity period.
Related Post: Step-by-Step Guide: How to Import a Car from the UK to Australia
About SEA GO International
SEA GO International specialises in UK to Australia car import services, guiding customers through complex import rules and tax calculations to ensure compliant and cost-effective vehicle shipments.
Contact SEA GO International today for expert guidance and a seamless experience!
Ensure your UK to Australia car import is fully compliant and affordable. Contact SEA GO International today for expert advice on import rules, tax obligations, and the most cost-effective shipping solutions.
Frequently Asked Questions (FAQs)
Q1: What is Vehicle Import Approval (VIA) and why is it important?
Vehicle Import Approval (VIA) is mandatory for all vehicle imports and must be secured before shipping your car. Without VIA, your vehicle will be held by customs on arrival or even sent back. Learn more in Australian Car Import Rules Overview.
Q2: How are import duties and taxes calculated?
Import duty is 5% of your vehicle’s customs value, including purchase price and shipping costs. GST of 10% applies to the total of the vehicle value, duty, marine insurance, and shipping costs. A Luxury Car Tax (LCT) of 33% may apply if your car exceeds the threshold: AUD 80,567 for non-fuel efficient vehicles and AUD 91,387 for fuel-efficient vehicles.
Q3: Can I ship personal belongings inside my vehicle?
Personal belongings are only permitted if using container shipping and must comply with quarantine rules. RoRo shipping does not allow any personal effects to be shipped inside the vehicle.
Q4: What kind of modifications might be needed to meet Australian safety standards?
Imported vehicles often require adaptations such as speedometer conversion, lighting changes, and safety feature upgrades to meet Australian Design Rules (ADR).
Q5: How long does the import process typically take?
The entire import process, including VIA approval, shipping, customs clearance, and registration, typically takes 8 to 12 weeks depending on paperwork accuracy and vessel schedules. This is based on shipments between the UK and Australia. For other origin or destination countries, shipping times vary.
Q6: What quarantine procedures apply to imported cars?
Vehicles must be clean and free of soil, plants, and pests before shipment to meet strict Australian biosecurity requirements. Quarantine inspection occurs on arrival.
Q7: Is insurance required for shipping vehicles?
Yes, standard vehicle road insurance does not cover international shipping risks. Purchase marine insurance for protection against damage, loss, or theft during transit.
Contact SEA GO International today for expert guidance and a seamless experience!
Contact SEA GO International today for expert guidance and a seamless experience!
For over 30 years, SEA GO International has been passionate about getting vehicles anywhere in the world, safely and efficiently. Our team offers a full range of services, from secure containerised shipping to innovative solutions like R-Rak.
- Import & Export Shipping
- Shared Container Service (R-Rak)
- Full Container Load (FCL)
- RoRo (Roll-on/Roll-off)
- Caravan Shipping
- Vehicle Import Approvals (VIA)
- Vehicle Valuations
- Customs Clearance
