If you’ve been eyeing a sleek Japanese import to cruise Australian roads, 2025 might be the perfect year to make your move. But before you dive into your JDM car purchase, it’s crucial to understand the tax and GST implications involved. At Tokyo Drive, we aim to make your buying process transparent and informed—so let’s break down everything you need to know.
Why JDM Cars Are Booming in Australia
Japanese Domestic Market (JDM) vehicles continue to grow in popularity due to their unbeatable reliability, advanced technology, fuel economy, and distinctive style. From compact hybrids like the Toyota Aqua to performance icons like the Nissan Skyline, Aussies are falling in love with JDM cars.
Yet, while the appeal is obvious, navigating the tax system can be tricky without the right guidance. That’s why Tokyo Drive is here to help.
Understanding Vehicle Import Taxes in Australia
When you import a JDM vehicle into Australia, you’re subject to several government charges. These include:
- Import Duty
- Goods and Services Tax (GST)
- Luxury Car Tax (LCT) (if applicable)
- Customs Clearance Charges
- Quarantine Inspection Fees
Let’s explore each of these in detail.
Import Duty
Import duty is usually 5% of the customs value of the vehicle. This is calculated based on:
- Purchase price
- Shipping cost
- Insurance
However, if your JDM car is over 30 years old, it may qualify for duty exemption under the Historic Vehicle Scheme. Check with your import agent or with Tokyo Drive for eligibility.
GST (Goods and Services Tax)
GST is charged at 10% of the total value of the car, including:
- Vehicle purchase price
- Shipping and insurance
- Import duty amount
So yes, GST is applied on top of the import duty. That’s double dipping in some eyes—but entirely legal.
For example:
- Vehicle Cost: $15,000
- Shipping & Insurance: $2,000
- Import Duty (5%): $850
- GST (10% of $17,850): $1,785
Your total government charges in this case would be around $2,635.
Luxury Car Tax (LCT)
If your imported JDM car exceeds the luxury car threshold, you’ll also need to pay LCT. In 2025, the threshold is approximately $76,950 for fuel-efficient vehicles.
Most JDM imports fall well below this, but high-end models like a Toyota Century or Nissan GT-R might cross the line.
Customs Clearance & Quarantine
Expect to pay:
- Customs Processing Fee: Around $50 – $200
- Quarantine Inspection Fee: $150 – $300
These are mandatory for all imports and must be paid before you can legally drive your vehicle.
Registration & Compliance Costs
Once the car clears customs, you’ll need to comply with state-level registration rules, including:
- Engineering Certification
- Blue Slip / Pink Slip Inspections
- Roadworthy Certificate
- Vehicle Identification Plate (SEVS/RAV inclusion)
Expect to pay another $1,000 to $2,000 depending on your state and the type of vehicle.
Tokyo Drive’s Advantage – We Simplify the Process
At Tokyo Drive, we include many of these costs in our fixed pricing. That means no hidden surprises. Here’s what we offer:
- Clear PPSR checks
- Rego & CTP included for 3 months
- Nationwide delivery
- No haggling — straight-up pricing
We also assist in financing and trade-ins, making it easier than ever to own a JDM car in Australia without dealing with complicated import paperwork.
Common FAQs About JDM Import Taxes
1. Can I claim back GST on a JDM import?
If you are a registered business and the car is used for commercial purposes, you may be able to claim the GST back as an input tax credit.
2. Do hybrids or EVs get special tax exemptions?
Some electric or hybrid JDM vehicles may be eligible for state incentives or reduced registration fees. Check your local road authority for up-to-date offers.
3. How do I avoid paying too much tax?
Work with reputable importers like Tokyo Drive who understand the market and help you choose vehicles that offer the best value with minimal tax burden.
Final Thoughts: Know Before You Import
Importing a JDM car is an exciting move, but it’s essential to be aware of all the financial obligations involved. From GST and import duties to compliance and registration costs, every dollar counts.
At Tokyo Drive, we believe in full transparency. That’s why our listings already include most import-related expenses. No surprises. Just exceptional value.
If you’re planning to import a JDM car in 2025, talk to our expert team at Tokyo Drive. We’ll walk you through every step, help you budget smartly, and ensure that your dream car arrives legally and affordably.
Visit our Facebook Marketplace or drop by 179 Parramatta Rd, Haberfield NSW today.
Drive smart. Drive JDM. Drive with Tokyo Drive.
