Interview: A solution for chartering foreign-flagged yachts in Australia?

presented by

Welcome to Yacht Charter Market, the weekly newsletter dedicated to the world of yacht charter.

In today’s newsletter:

• Interview: A solution for chartering foreign-flagged yachts in Australia?

• Charter updates: New CA announcements for Northrop and Johnson, Splendid Yachting & Worth Avenue. Offers from Denison and Ocean Independence and Northrop and Johnson. 🚀

• Charter photo: Inside the freshly-refitted Boadicea 📣

• Destination spotlight: Barcelona 🇪🇸

• Post of the week: Golden hour in Trogir 🌅

TOP STORY

Interview: Foreign-flagged superyacht regulations and charter in Australia with Cameron Bray

Jessamie Rattray sat down with Cameron Bray, Founder and Director of The Superyacht People and Chairman of Superyacht Queensland, to discuss the financial and administrative complexities of bringing foreign-flagged yachts into Australia, solutions, and Australia as a superyacht destination.

Could you set the scene and explain the financial and administrative context surrounding bringing foreign-flagged yachts into Australia?

The law states that any yacht or foreign asset coming into Australia that will earn money during its time in Australia must be officially declared and imported. Generally, there are multiple steps that an owner would have to take to bring their vessel into Australia.

Firstly, non-Australian resident entities must apply for an Australian Business Number (ABN), which can take up to 6 months for foreign residents and require original versions of identity documents to be provided to Australian authorities. The owner must then consider the cost: The importation of the yacht and any associated goods or fuel, would be subject to 10% GST on the value of the yacht as well as the value of any other individual items. These amounts would need to be paid before the yacht would be cleared to enter Australia.

To ensure tax compliance, any GST payable on charter revenue, or GST paid on the importation or costs relating to the commercial chartering of the yacht while in Australia, would only be able to be paid or refunded where the owner holds an ABN and is registered for Australian GST.

This complexity and expense have historically dissuaded owners from bringing their yachts into Australian waters; Owners don’t want to pay $5 million just to get into the country and be able to charter for a figure a lot lower than that. Dealing with the complex administrative process of complying with the Australian tax system, often acts as a barrier for owners to bring their boats into Australian waters.

You established a solution to make bringing foreign-flagged vessels into Australia a lot easier. Could you explain this process?

As an industry, we sought the advice of PwC, PricewaterhouseCoopers, to understand how it would be possible to get around or to change this and ultimately attract more superyachts to Australia. The PwC explained that nothing actually had to be changed, as a solution is already written into the tax laws, but just hasn’t been applied to the superyacht industry yet.

The solution is known as resident agency, which essentially means that a resident agent in Australia will take on the tax liability for the yacht owner. This keeps the owner essentially immune from the tax office. We charge a fee to yacht owners for taking on the tax liability for them. This is often negated by the fact the owner doesn’t need to register a company in Australia and then subject themselves to a foreign tax jurisdiction. The solution removes the need for yacht owners to deal directly with Australian revenue authorities or navigate the complex system on their own.

The concept of resident agency is used globally in many different industries and scenarios, for example, when importing racehorses overseas for horse racing competitions. It’s a relatively common procedure, that just hadn’t been used for bringing foreign-flagged vessels into Australia. This is where we saw an opportunity to establish a business that specialises in offering resident agency to foreign-flagged yacht owners interested in bringing their yachts to Australia’s coast. Since starting Foreign Flag Yachting, we have had strong interest and successful charters.

Whats the appetite for yacht charter in Australia? What are the trends in the demographic?

There is a big corporate market for day charters. Sydney Harbour exemplifies this perfectly. The natural geography of the harbour makes it one of the most incredible natural harbours in the world. You can understand why James Cook decided to settle there: it's protected from every wind direction, with no swell, and surrounded by some of the most expensive properties globally, including houses worth over $100 million.

Sydney is also the corporate hub of Australia. It hosts the head offices of major banks, insurance companies, and other corporations. This proximity makes it easy for executives to leave their offices at the end of the day, hop on a yacht with 50 people, enjoy a four-hour cruise with champagne and a DJ, and then return home. It’s an excellent platform for networking and product launches. For instance, nearly every watch company in the world hosts events on these yachts. They invite their top buyers to showcase new watch lines, creating a luxurious and engaging atmosphere. Real estate agents also use yachts for Christmas parties, spending significant amounts.

We see a lot of clients who do both day and overnight charters for significant events and celebrations like birthdays. It is pretty family orientated, and lots of charters are focused around this.

When yachts are cruising in Australia, what are the hotspots?

Sydney Harbour on New Year's Eve is a massive bucket list item for many people, right in the middle of our summer. The Great Barrier Reef is another major attraction, famous for its incredible diving and underwater experiences.

One thing I've realised is that people don't really know much about Australia and just how big it really is. For perspective, when people say Australia is as big as Europe, they're not joking. It’s pretty wild. And when someone wants to visit the Great Barrier Reef, it’s impressive to note that it’s so large that it could cover multiple European countries combined.

There’s also a little place in the middle of the reef called the Whitsundays. It makes up only about 1% of the Great Barrier Reef's surface area but attracts 50% of the tourism. It’s like the Disneyland of the reef; everybody wants to go there. So, the Whitsundays is definitely one of the travel hotspots around here.

One fascinating statistic is the actual length of stay versus the intended length of stay. Visitors might plan to come for 30 days but often end up staying for around 180 days. I think this is due to a combination of things; there is so much to do and see, it's very safe, everything is in English, and everything else that Australia has to offer on such a large scale.

With the Olympics taking place in Brisbane in 2032, how do you think this will impact the Australian superyacht industry?

The Brisbane Olympics will help in putting us on the map as a superyachting desitnation. Already, Australia is seen as a very safe country, which means it's low risk for owners to come here. We do need to improve our infrastructure, particularly to accommodate larger yachts of 80+ meters, so they can get close to the action. We're heading in the right direction, with the Gold Coast and Brisbane, or southeast Queensland region, becoming a bit like the Fort Lauderdale of Australia. This area is where all the marinas, shipyards, skilled labour, infrastructure, and intelligence are concentrated. Plus, the Olympics will be held here, so it's definitely in the right place. On the Gold Coast, the Southport Yacht Club has built a 160-meter berth.

Looking at a world map with Australia in the centre, it is exactly halfway between the Panama and Suez Canals. So, if you're doing a world tour, you’ll likely need to stop in either Australia or New Zealand, since there's not much infrastructure elsewhere. By having the necessary infrastructure, we have the opportunity to attract those yachts.

What role does Australia play as part of the Asia Pacific Superyacht region, and how important is it to you that the countries in this region work together to increase superyacht tourism?

The South Pacific is seen as the third yachting destination behind the Mediterranean and the Caribbean. When we go to the Monaco Yacht Show, we represent the South Pacific. Initially, we all exhibited individually, but then we realized it made more sense to join forces, supporting eachother and collaborating effectively. By presenting a united front, we attract more yachts to the region and then negotiate among ourselves for deals and bookings. This approach includes Tahiti, Australia, the Cook Islands, and Fiji, which seems to be working well.

What would you like to see happen to boost the Australian superyacht industry in the next 5-10 years?

Education is obviously paramount. Many people, including brokers, are learning about Australia for the first time. Often, brokers say they don't know anything about Australia, but they don't realize they need this knowledge until a client expresses interest in visiting.

I’ve realised that providing this information is crucial, even though I’ve been giving away a lot of intellectual property for free. It feels necessary to share this knowledge because the industry can be very closed off and protective of their own areas. By educating brokers, we can open up new opportunities and expand everyone's understanding of what Australia and the South Pacific have to offer.

LATEST CHARTER UPDATES

News: Denison Yachting announced that the 41.15-metre Horizon motor yacht Stay Salty and the 36.91-metre Sovereign motor yacht Real Summertime will now offer all-inclusive charter packages, starting in the British Virgin Islands and the Bahamas.

Splendid Yachting welcomed the 34-metre Cyrus Yachts motor yacht Dream to its charter fleet.

Northrop & Johnson advertised a special offer on charters onboard the 37.95-metre Sanlorenzo motor yacht Premura. Premura is offering 10% discount on her remaining dates:

• 8 to 19 July in the South of France

• And again from the end of August through to the end of September

🚀 New CA for charter: Worth Avenue Yachts welcomed the brand-new 29-metre Sunseeker Accidental Success II to its charter fleet.

Ocean Independence advertised a deal on the 44.4-metre Bilgin Yachts motor yacht Tatiana I. She is available in Naples with a 15% discount.

🌟 Northrop & Johnson welcomed the 28.41-metre Peri yacht Quantum to its charter fleet.

Northrop & Johnson also welcomed the 22-metre Azimut yacht Carpe Diem to its charter fleet.

Yacht Charter Market: Presented by YachtEye

From onboard menus, to water toys, crew profiles and the trip itinerary, find out how essential trip information can be made digital with YachtEye. 👀📲

• YachtEye is software for superyachts that digitises essential information for the owner, guests and crew.

• Our software means that key information for everyone onboard can be made digital and accessible via the web, the YachtEye iPad or mobile app.

• Make communications before and during the trip or charter run smoothly, as everyone onboard has access to the most up-to-date information.

yachteyesyt

View more on Instagram

Seamlessly connect your yacht, crew and guests on one platform to share the fun! Visit yachteye.com or contact [email protected] to learn more.

CHARTER PHOTO OF THE WEEK

Onboard Boadicea, the 76.6-metre Amels superyacht that just completed her extensive refit.

Check out her impressive and multifunctional exterior spaces.✨

DESTINATION SPOTLIGHT

Travel Inspiration: Barcelona

The beautiful and bustling city of Barcelona is the perfect destination for those seeking a lively, flamboyant stop on a superyacht cruise. The city mixes sleek, cosmopolitan energy with authentic Spanish and Catalan history and culture.

Barcelona is a cultural treasure trove, and visitors come from around the world to witness the city’s artistic and architectural gems. The famous Gaudi chose Barcelona as his canvas on which to create his architectural masterpieces.

A visit to Park Guell is a must for all who visit Barcelona: the park exhibits Gaudi’s legendary architecture and boasts panoramic views of the city. Barcelona also plays host to the Picasso Museum and various iconic sites such as La Sagrada Familia.

A visit to Barcelona is incomplete without indulging in the region’s delicious cuisine. Enjoy the sensation of authentic Catalan paella or mix-and-match flavours by ordering tapas. To experience some down-to-earth Barcelonian culture, head to La Boqueria Market, a traditional food market selling a diversity of exciting food, both local cuisine and international favourites.

POST OF THE WEEK

@triumphyacht shared this beautiful golden hour picture shot in Trogir.☀️

SHARE YACHT CHARTER MARKET

Share this newsletter with friends, colleagues and other interested parties.