How will the multihull be maintained in the charter fleets?
As the boat is a working asset, it is subject to a structured maintenance program. It is within the interests of the charter boat operator to keep the boat well maintained as breakdowns in the field are costly, time consuming and lead to unhappy charterers.
Will the charter boat have a lower resale value than a similar private boat?
There is typically little difference in resale values between charter and private boats. Although there may be less wear and tear on a private boat, the presence of the survey capability of the charter boat is often seen as a positive. Currently as there is a shortage of charter boats, the resale on these is attracting a premium.
Will I get a refund of the GST on the purchase price of the charter boat?
Owning a charter boat is in reality operating a charter boat business and as such the GST is refunded as an input credit.
Will I have any future GST obligation on the boat if I sell it or take the boat to private use?
Yes, you do have a GST obligation on the sale price of the boat and 1/11th of the sale price needs to be remitted to the ATO as payment of GST.
You will also have a GST payment to be made in the event you retain your boat and simply change the use of the boat from business (charter) to private use. This is calculated by obtaining a valuation on the boat and remitting 1/11th of that valuation as payment of the GST upon converting the boat to private use.
How often can I use the boat for private use, are there any restrictions on the time of year?
Typically, the owner and operator agree to pre-booked owner use of up to 28 days per year and this use to be outside of Peak Seasons. We have seen many instances where owners have taken the boats for longer periods in the Off Season and the charter operators are happy for this to occur.
How will I know how much the boat will earn each year?
As with any holiday destination, tourism numbers are subject to many influences such as the weather, the economy, currency exchange rates (eg. a lower AUD keeps more Australians holidaying at home and increases inbound tourism as we are seen as a low cost holiday by overseas tourists, a higher AUD has the reverse effect).
Typically, when looking at the potential Gross & Net incomes of a particular charter boat, the best indications of future revenues is to look at this historic income levels of similar boats and then overlay that with the current market forces.