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The owners or masters of yachts cruising Australian waters on cruising permits will be able to obtain Goods and Services Tax (GST)-free repairs or refits by presenting their cruising permits to their repairers/refitters. The Australian Taxation Office will not require presentation of documents showing prior arrangement of repairs or refits. GST-free repairs/refits include any repairs or refits to the yachts which are done during the course of their visits to Australia. Examples of these include:
* Repairs necessitated by accidents in Australia; and
* Routine maintenance
To be GST free the supply of goods must be provided by the supplier of the refit/repairs to the vessel. The repairer/refitter can make a GST-free supply of the repair/refit by retaining a copy of the cruising permit. In addition to the cruising permit, the repairer/refitter will retain the financial records ordinarily required for taxation and accounting purposes.