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Importing a Car to Australia, Step by Step: Approval, Duty, Luxury Car Tax and the 25-Year Rule for Classic Cars

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importing a car to australia

IN THIS ARTICLE

Importing a car to Australia takes more than booking a ship. The car needs a government import approval before it leaves port, it must pass biosecurity and asbestos checks on arrival, and it attracts customs duty, GST and, for higher-value cars, luxury car tax. Get the order wrong, and the car can sit on the wharf while storage costs build up.

This guide walks through how to import a car to Australia step by step, including classic car rules and costs.

TL;DR Quick Answers

To import a car to Australia, you need an import approval from the Department of Infrastructure before you ship it. On arrival, the car must be clean and asbestos-free, and you pay customs duty, 10% GST and, above the threshold, 33% luxury car tax. Cars over 25 years old can use a simpler approval pathway.

 

Do you need approval to import a car to Australia?

Yes. Every road vehicle needs an import approval from the federal Department of Infrastructure before it is shipped. This applies whatever the car’s value, and whether it is a personal import or a car for resale.

  • Apply before shipping: Importing a vehicle without an approval is an offence, so do not arrange transport until you hold one.
  • Where to apply: Applications are made online through the department’s ROVER system.
  • Timeframe: Assessment generally takes up to 30 business days once the fee is paid.
  • Registration is separate: An import approval does not guarantee the car can be registered. Each state and territory sets its own rules, which matters most for left-hand-drive cars.

Which import approval fits your car?

There are four types of approval, and the right one depends on the car:

  • Vehicle type approval: For new vehicles that a manufacturer has approved for supply in Australia.
  • Concessional RAV entry approval: For specialist and enthusiast vehicles and older vehicles, which are then added to the Register of Approved Vehicles (RAV).
  • Non-RAV entry import approval: For vehicles that will not be registered for general road use, such as some significantly modified vehicles.
  • Reimportation approval: For cars that were previously in Australia.

 

How do you import a classic car to Australia?

Most classic cars are imported under the older vehicles pathway, often called the 25-year rule in Australia. A car built more than 25 years ago can apply for a concessional RAV entry approval, which adds it to the Register of Approved Vehicles and opens the way to registration.

  • A rolling rule: The car must have been built more than 25 years before the application, so new model years become eligible each year.
  • Significant modifications: If a car was significantly modified in the last 25 years, it is assessed differently and may only qualify for restricted registration.
  • Asbestos risk: Older cars are more likely to have asbestos in brake pads, gaskets and clutches. Importing asbestos is prohibited, so the importer must make sure the car is asbestos-free before it ships.
  • Registration: Check your state or territory’s rules before you buy, particularly for left-hand-drive cars.

 

What does it cost to import a car to Australia?

The cost to import a car to Australia comes from shipping, government charges and local costs. Car import duty and tax are usually the largest part for higher-value cars.

  • Customs duty: Car import duty in Australia is worked out on the customs value, and is commonly 5% unless a free trade agreement gives a lower rate. Cars made in China, for example, can enter duty free under the China-Australia Free Trade Agreement when its origin rules are met.
  • GST: 10% of the value of the taxable importation, which includes the car’s value, shipping, insurance and duty.
  • Luxury car tax: 33% on the part of the car’s value above the luxury car tax threshold.
  • Import processing charge: A fixed ABF charge for each import declaration.
  • Biosecurity costs: Inspection fees, and cleaning if the car arrives dirty.
  • Approval fee: The application fee for the import approval.
  • Shipping and local costs: Freight, marine insurance, port charges, customs clearance and delivery.

Car import tax follows the same rules as other goods, so the usual customs duty, GST and import charges apply, with luxury car tax added on top.

How does luxury car tax work on imported cars?

Luxury car tax (LCT) applies to cars valued above a set threshold. For 2026-27, the luxury car tax threshold is AUD 80,809, or AUD 91,661 for fuel-efficient vehicles. The tax is 33% of the amount above the threshold.

For an imported car, the LCT value is the customs value, plus international transport and insurance, plus any customs duty, plus the GST. The ATO’s formula is:

  • LCT: (LCT value − LCT threshold) × 10 ÷ 11 × 33%.

The Department of Home Affairs collects LCT at the border, with the duty and GST. Some cars can qualify for a luxury car tax exemption under specific legislation, so check this before you calculate the tax.

A worked example

Take a car with a customs value of AUD 70,000, AUD 5,000 of shipping and insurance, and a 5% duty rate. The figures are illustrative.

 

Charge How it is worked out Amount
Customs value Price paid for the car, in AUD AUD 70,000
Shipping and insurance Cost to ship and insure the car to Australia AUD 5,000
Customs duty 5% of AUD 70,000 AUD 3,500
Value for GST AUD 70,000 + AUD 5,000 + AUD 3,500 AUD 78,500
GST 10% of AUD 78,500 AUD 7,850
LCT value AUD 78,500 + AUD 7,850 AUD 86,350
Luxury car tax (AUD 86,350 − AUD 80,809) × 10 ÷ 11 × 33% AUD 1,662.30
Total duty and taxes Duty + GST + luxury car tax AUD 13,012.30

 

This total is before the import processing charge, biosecurity fees and shipping. 

 

How is a car shipped to Australia: RoRo or container?

There are two main ways to ship a car: roll-on roll-off (RoRo) or in a container. The right choice depends on the car’s value and condition.

  • RoRo shipping to Australia: The car is driven onto a specialist vehicle carrier, like a floating car park. It is often the cheaper option for cars that run, but personal items cannot usually be left inside.
  • Container shipping: The car is secured inside a shipping container. It gives more protection, which suits classic and high-value cars, and suits cars that do not run.
  • Shared containers: Two or more cars can sometimes share a container, which can lower the cost per car.

When comparing quotes for car shipping to Australia, check whether the sea freight price covers origin charges, marine insurance and delivery, not just the freight.

What checks happen when the car arrives?

The car must clear customs and biosecurity before release.

  • Biosecurity inspection: The car must be clean inside and out, including the engine bay, wheel arches and underbody. It is inspected on arrival, and the importer pays the inspection charges. A dirty car must be cleaned before release.
  • Asbestos checks: If the ABF considers a car at risk of containing asbestos, it can ask for evidence or testing, and the importer bears the cost and delay.
  • Customs clearance: An import declaration is lodged, and the duty, GST and luxury car tax are paid.
  • Air conditioning: If the car has an air conditioner, it must be degassed before transport can begin. Older cars with air conditioners that use CFC or HCFC refrigerants also face extra restrictions under Australia’s ozone protection laws.

 

How do you import a car to Australia, step by step?

Work through these steps in order.

  1. Check eligibility. Confirm which approval pathway fits the car and that it can be registered in your state.
  2. Apply for the import approval. Apply through ROVER and wait for the approval before shipping.
  3. Check for asbestos. Get evidence that the car is asbestos-free, especially for older cars.
  4. Clean the car. Have it thoroughly cleaned before it is shipped.
  5. Book the shipping. Choose RoRo or container and arrange marine insurance.
  6. Lodge the import declaration. A licensed customs broker can lodge it and calculate the duty, GST and luxury car tax.
  7. Complete the biosecurity inspection. Book the inspection and pay any fees.
  8. Collect and register. Arrange delivery from the wharf to your door, then register the car with your state or territory.

 

Key takeaways

  • Approval first: You need an import approval before the car is shipped.
  • Classic cars: Cars over 25 years old can use the concessional RAV entry pathway.
  • Taxes: Expect customs duty, 10% GST and, above AUD 80,809, 33% luxury car tax.
  • Clean and asbestos-free: The car must pass biosecurity and asbestos checks on arrival.
  • Registration is separate: An import approval does not guarantee registration.

 

Official Resources and Regulatory Compliance

 

How Kenneth Lloyd Global helps with importing a car

Kenneth Lloyd Global (KLG) has 25 years’ experience in global logistics, with foundations in customs brokerage and compliance. Importing a car brings together approval, shipping, customs and biosecurity, and KLG’s freight forwarding, customs clearance and local transport services cover the steps after the approval is in place.

  • Licensed and accredited: KLG holds a customs broker licence and Australian Trusted Trader accreditation, and is a member of the Freight and Trade Alliance.
  • Customs clearance: KLG lodges the import declaration and works out the duty, GST and luxury car tax.
  • Biosecurity: KLG arranges DAFF inspections, fumigation and treatment, with a warehouse approved for biosecurity inspections.
  • Shipping and delivery: KLG arranges marine cargo insurance, wharf cartage, container unpacking and delivery across Australia and New Zealand.

 

Plan your car import with a Licensed Customs Broker

Planning to import a car? Send through the car’s details, where it is coming from and your delivery address, and KLG will explain the costs and steps before you ship.

Call Chris Ciantar, Managing Director, on +61 412 983 265 or email chris@kennethlloyd.com.au. Chris is available after hours and on weekends. You can also send your details through the KLG contact form.

Frequently asked questions

How do I import a car to Australia?

First, apply for an import approval from the Department of Infrastructure through ROVER, and wait for it before you ship the car. Make sure the car is clean and asbestos-free, then ship it by RoRo or container. On arrival, lodge an import declaration, pay the duty and taxes, pass the biosecurity inspection, and register the car.

How much does it cost to import a car to Australia?

It depends on the car’s value and where it comes from. Expect shipping and insurance, customs duty (commonly 5% unless a free trade agreement applies), 10% GST, and 33% luxury car tax on value above AUD 80,809 for 2026-27. Add the approval fee, import processing charge, biosecurity fees and local delivery.

What is the 25-year rule in Australia?

The 25-year rule is the common name for the older vehicles pathway. A car built more than 25 years ago can apply for a concessional RAV entry approval, which adds it to the Register of Approved Vehicles. It is a rolling rule, so new model years become eligible each year. Registration still depends on your state.

Do I pay luxury car tax on an imported car?

You pay luxury car tax if the car’s LCT value is above the threshold, which is AUD 80,809 for 2026-27, or AUD 91,661 for fuel-efficient vehicles. The tax is 33% of the amount above the threshold. It is collected at the border with the customs duty and GST, unless an exemption applies.