Understanding Car Import Costs in Australia
Importing a vehicle to Australia involves more than simply arranging shipping. Alongside freight charges, you’ll be liable for a number of government duties and taxes that form the bulk of car import costs in Australia. These include customs duty, Goods and Services Tax (GST), Luxury Car Tax (LCT), where applicable and several statutory fees.
Knowing these charges upfront is essential, as they can significantly increase the landed cost of your car. At DAZMAC, we specialise in guiding importers through the process, ensuring you know exactly what to expect before your vehicle leaves port.
Customs Duty in Australia
Most passenger vehicles attract a car import duty in Australia of 5%. This duty is calculated on the customs value of the vehicle, which is usually close to the price paid for the car.
In some cases, this duty can be reduced to 0% if the vehicle qualifies under a Free Trade Agreement (FTA) between Australia and the country of export. To benefit from an FTA, importers must provide the correct paperwork, such as a certificate of origin. Without this documentation, the standard duty rate applies.
For example, importing a car valued at $25,000 without an applicable FTA would add $1,250 in duty before any other charges.
Understanding car import duty in Australia helps you budget accurately before shipping.
Goods and Services Tax (GST)
The most significant car import tax in Australia is GST, charged at 10%. GST is applied not only to the vehicle’s purchase price but also to shipping, insurance and duty. This means the base used for GST calculation is often higher than buyers expect.
For instance, a car purchased for $30,000, with $3,000 in shipping and insurance and $1,500 in duty, would have a GST base of $34,500. Ten per cent GST on this figure equals $3,450.
This structure is why GST frequently represents one of the largest car import fees in Australia. You can quickly check estimates using our Car Import Calculator.
Luxury Car Tax (LCT)
For higher-value vehicles, car import charges can include Luxury Car Tax. LCT is set at 33% and applies only to the portion of the car’s value above the relevant threshold.
For the 2025–26 financial year, the thresholds are:
- $91,387 for fuel-efficient vehicles
- $80,567 for other vehicles
As an example, if you import a non-fuel-efficient car valued at $100,000, LCT would apply to $19,433 (the amount above the threshold). At 33%, that’s an additional $6,412.
This tax can have a significant impact on total car import costs in Australia, so it’s important to check whether your vehicle falls within these thresholds before committing.
Other Statutory Fees and Charges
Import Processing Charge
All import declarations attract an Import Processing Charge. The amount depends on the value of the shipment and whether the car is arriving by sea or air. While the cost is relatively modest compared to duty or GST, it is unavoidable and applies to every import.
Biosecurity Fees
Every imported vehicle undergoes biosecurity inspection by the Department of Agriculture. A biosecurity cost recovery charge is applied to cover this service. If the vehicle is dirty or contaminated, further cleaning or fumigation may be required, adding extra expense and potential delays.
Port and Handling Fees
In addition to government charges, you’ll encounter fees for port handling, terminal services and wharfage. These are charged by service providers rather than the government, but they are still part of the final car import charges.
GST is a major part of the car import tax in Australia, applied on the vehicle’s value plus shipping and duty.
Example: How the Charges Add Up
To illustrate how these costs combine, consider two examples.
Example 1: Standard Import
- Vehicle value: $30,000
- Shipping and insurance: $3,000
- Customs duty (5%): $1,500
- GST (10% on $34,500): $3,450
- Import Processing Charge and biosecurity fee: ~$150
Total before local delivery and port handling: $38,950
Example 2: Luxury Vehicle
- Vehicle value: $100,000 (non-fuel-efficient)
- Shipping and insurance: $5,000
- Customs duty (5%): $5,000
- GST (10% on $110,000): $11,000
- LCT (33% on $19,433): $6,412
- Import Processing Charge and biosecurity fee: ~$150
Total before local delivery and port handling: $127,562
These examples demonstrate why it’s vital to account for all car import costs in Australia before making a purchase decision.
Why It Pays to Plan Ahead
Charges such as GST, duty and LCT are updated each financial year. Free trade agreements and thresholds also change over time, meaning the amount payable can vary depending on when and how you import.
At DAZMAC, we provide accurate cost estimates tailored to your vehicle. Our service ensures you understand all car import fees in Australia, from customs duty and taxes to quarantine and port handling. We manage the entire process, reducing the risk of unexpected costs or delays.
Get a Tailored Quote from DAZMAC
Understanding the full picture of car import costs in Australia can be complex, especially with duties, taxes and fees changing from year to year. At DAZMAC, we calculate every applicable charge upfront, from customs duty in Australia to GST, Luxury Car Tax and biosecurity fees, so you know exactly what your vehicle will cost before it arrives.
Our experienced team manages the entire process, including import approvals, customs clearance and quarantine inspections. Whether you’re importing a classic, a family car, or a high-performance vehicle, we make sure the journey is seamless.
For a clear breakdown tailored to your vehicle, you can request a car import quote, or if you’d prefer to speak directly with our team, you can contact us today.
Frequently Asked Questions
What taxes and duties apply when importing a car to Australia?
When bringing a vehicle into Australia, you’ll usually pay import duty on cars in Australia (commonly 5%), 10% GST and sometimes Luxury Car Tax if the value is above the threshold. On top of these, there are processing and inspection fees that all importers must cover.
How are car import fees calculated?
Car import fees in Australia are based on the customs value of the car, plus shipping and insurance. Import duty, GST and other statutory charges are then applied to this amount. You can use our car import duty calculator or request a quote from DAZMAC for an accurate figure.
Are there exemptions or reduced rates?
Some vehicles are eligible for reduced or zero duty if imported from a country with a free trade agreement with Australia. Other concessions may apply if you are relocating and bringing a personally owned vehicle, though GST and other customs fees for importing cars into Australia usually still apply.
What other hidden fees should I budget for?
Beyond duty and GST, you’ll need to budget for quarantine fees on car imports, import processing charges and possible compliance costs for car imports in Australia. Port handling, delivery and cleaning or fumigation fees may also be added if required.
How much tax do you pay to import a car into Australia?
The amount of car import tax in Australia depends on the vehicle’s value, shipping costs and duty. At a minimum, you’ll pay 10% GST, and high-value cars may also attract Luxury Car Tax on imports to Australia.
Do I need an import permit for a car in Australia?
Yes, all vehicles require approval under the Road Vehicle Standards legislation before shipping. Import permit fees for vehicles apply, and without approval, your car cannot be cleared through customs.
