A big government shake-up for local car importation laws could have massive implications for the way Aussies buy their vehicles. From 2018 onwards, you’ll be able to parallel import brand new cars and avoid tariffs on imported used cars, potentially saving yourself thousands of dollars over local dealers.
Business Insider reports that changes to the Motor Vehicles Act in Australia will open up the domestic markets of dozens of countries around the world to private Australian buyers. From 2018, private buyers will be able to purchase and import cars from countries with comparable standards to Australia — the full list hasn’t yet been decided, but preliminarily both Japan and the United Kingdom have been approved.
The cars must be no more than 12 months old, and must have no more than 500km on the odometer. The price difference won’t be enough to justify importing cheaper cars, but just below Australia’s circa-$64,000 Luxury Car Tax threshold (and beyond) there will be some bargains — with countries like the UK and Japan both selling identical cars at a significant discount to Aussie dealers. The same “Australia tax” that we’re used to with technology applies even moreso with cars.
Used cars will also become far easier to import with the amendment of the Customs Tariff Act 1995, to remove a $12,000 special duty that applies to used imports. That tariff wasn’t applied consistently anyway, but its abolishment is a point of comfort for wary would-be importers. Cars that are imported will have a specific plate affixed and their details added to a new register, as well as the traditional blue-slip inspection and registration process.
There are some huge advantages to import at Australia’s luxury and niche car manufacturers’ current pricing. A Porsche 911 Carrera S will cost you $274,000 and change to buy in Australia, while an import including freight and government fees is a full $44,000 cheaper. Some, like Tesla’s Model S, have only a few thousand dollars’ disparity between local and imported prices. These prices may change to make importing less attractive, or we may see more imported new and used cars on Australian roads in the near future. [Business Insider]