Opportunity
Australia is a beautiful cruising destination renowned for its iconic attractions and safe secluded cruising grounds. It also has some of the best repair and refit businesses, marina facilities and supply chain.
Problem
Dealing with the complex administrative burdens of complying with the Australian Tax System (and in particular, the Goods and Services Tax (GST)) obligations on the importation and chartering of superyachts, often create a significant impediment to yacht owners from bringing their yachts into Australia.
Solution
In order to navigate this process, Foreign Flag Yachting in collaboration with PricewaterhouseCoopers (PwC) have developed a seamless approach to managing all of the regulatory burdens of the Australian Tax System. This removes the need for yacht owners to deal directly with Australia’s complex tax system and revenue authorities.
Assurance
In developing our superyacht solution, FFY have obtained an agreement with the Australian Tax Office to confirm the legality and all necessary compliance requirements are met.
SOLUTION
A secure structure to charter in Australia
Administrative Burdens
FFY will manage all of the relevant GST obligations on behalf of the owner. In this regard, PwC will prepare Business Activity Statements and report any GST payable on charter activity or claim any GST paid on associated costs.
GST on importation
The solution involves Foreign Flag Yachting, as the representative of the superyacht owner accessing the Deferred GST Scheme, which provides significant cash flow advantages on the entry/importation of the yacht. The representative is also able to claim corresponding GST credits and manage this process with the Australian Taxation Office.
Tax Liability
Under the proposed offering, all tax liabilities and obligations will pass to the local representative for the superyacht owner. This provides a seamless solution for superyacht owners looking to offer their yacht for chartering in Australia without the need to worry about Australia’s complex tax system.
Customs Obligations
Foreign Flag Yachting will manage all of the Australian Customs obligations on behalf of the superyacht’s entry into Australia for chartering. This includes preparing importation documents and dealing with the local Customs authority.