Why the charter question exists
Governing: Coastal Trading (Revitalising Australian Shipping) Act 2012 ss10, 28; Customs Act 1901 (via ABF Form B571). Builds on: nothing — start here.
The short version
A foreign-flagged superyacht can cruise Australia privately with relatively little friction. The moment a paying guest steps aboard, two separate regimes are engaged: customs (has the yacht been imported?) and coastal trading (is it carrying passengers for reward between Australian ports?). For years the combination made foreign-flag charter in Australia impractical, which is why Parliament passed the Special Recreational Vessels Act in 2019.
Customs: the Control Permit
A foreign yacht visiting privately is normally held under customs control on a Control Permit (ABF Form B571, "Deferral of Craft Entry Requirements"). The yacht is not formally imported, so no duty or GST is paid. The price is a set of conditions:
| Control Permit condition (Form B571) | Detail |
|---|---|
| Eligible craft | Non-commercial foreign craft owned by bona fide visitors; non-resident Australians temporarily in Australia |
| Prohibited use | Must not be sold or offered for sale, hired, leased, or used for trade, commerce or profit — including charter |
| Period | Extensions in increments of up to 12 months, to a maximum of 3 years in total |
| After the maximum | A 3-year exclusion before re-applying |
| Reporting | Quarterly location reports; 5 working days' notice if leaving the craft in Australia |
Superyacht Australia adds that a permit runs for up to 12 months or the length of the master's visa, whichever is less.
Charter breaks the permit. ABF's 2015 superyacht fact sheet says commercial charter is "operating for a reward" and requires entry for home consumption — which brings GST at 10% of the value of the taxable importation and any duty. On a EUR 40 million yacht that is not a rounding error.
Coastal trading
The Coastal Trading Act 2012 licenses vessels carrying passengers or cargo between Australian ports. Section 10(f) says the Act does not apply to a recreational vessel, defined as one "used wholly for recreational or sporting activities". A superyacht taking paying guests is arguably no longer used wholly for recreation, but equally was never designed as a licensed coastal trader. The standard temporary licence under s28 requires an application for 5 or more voyages over a 12-month period — a poor fit for a charter yacht's itinerary.
What the SRV Act did
The SRV Act, in the words of its own outline, let special recreational vessels "opt in" to the coastal trading scheme. It created a special recreational vessel temporary licence, handled under the Coastal Trading Act with modifications. Holding a coastal trading licence was the key that customs and tax arrangements were built around. Lesson 1.2 covers how it worked; Lesson 1.3 covers what happened when it ended.
CAUTION — Do not improvise A "friends of the owner" trip with money changing hands is a charter for customs purposes. Masters have lost the Control Permit, and owners have faced import GST, over arrangements that looked informal.
Yacht angle
The master is the person ABF and the Department will deal with. Even where an agent handles the paperwork, you need to know which regime the yacht is under on every day it is in Australia.