Cost of Boat Ownership in Australia – Your Simple Guide for 2025

Boat ownership is on the rise in Australia. For most Australians, a trip to the local waterway isn’t so much a voyage, more a casual meander to the beach or local river. It’s a place to unwind at the end of a hard day or escape the hustle and bustle at the end of the working week.

With more than 80% of Australians residing within the coastal zone, it should come as little surprise that we have a deep and storied love affair with boats. The latest data from 2023 shows that there are more than 900,000 boats registered in Australia, with roughly 15,000 new registrations every year.

With so many locals making the most of our waterways, boat ownership costs are a key consideration for almost one million Australians. When it comes to owning a boat, there are several important factors that you need to consider beyond the outright purchase or finance cost of your chosen vessel. In this article, we’ll break down the different fees associated with boat ownership you can expect in 2025. This is meant to be a practical guide to the overall costs that buyers should be aware of before going ahead with their next purchase.

Outright Purchase Cost of the Boat

It doesn’t take much experience in the marine leisure world to know that the price of a boat varies drastically between one vessel to the next. The cost of a boat itself is dependent on multiple factors such as the size, type of boat, and the manufacturer. Prices can range from a few thousand dollars to multiple millions.

Regardless of the price, buying a boat (big or small) is a significant investment. As such, it is crucial that you consider every option, do the appropriate research, and determine what is the best option for you.

Comparing the Purchase of New & Used Boats

Both purchasing a new boat and buying a used one have their advantages, and both have downfalls. When you buy a new boat, you benefit from the latest technology and the peace of mind of a warranty (depending on the manufacturer). While you will pay more for a new boat, you can have confidence in the fact you are covered by the warranty and won’t need to fork out thousands of dollars if you break down or experience any issues down the line.  

However, new boats cost more and depreciate quicker. A used boat will come at a more affordable price, and it will depreciate at a slower rate, meaning you will get better value overall if you decide to sell it on at a later date.

However, with used boats, you need to be careful and be aware that it generally won’t include any warranties, and there will be wear and tear present. In the long run, you could end up spending a lot more money on maintenance and upkeep of the vessel, making it less cost-effective than initially thought.

Financing vs. Outright Purchase – Which is Right for You?

Once you have made the decision to purchase a boat, you’ll naturally consider your options: whether to buy it outright or to finance it. Whether or not you finance or purchase outright will come down to personal circumstances, disposable income, and availability of funds. Both can be fantastic purchasing methods, but you need to analyse your own situation to determine the right route for your new vessel.

Financing a boat allows you to spread out the costs over time, which makes buying a boat more affordable and more accessible. Choosing a finance option doesn’t deplete your cash resources as much, leaving you with more available funds for other investments and day-to-day expenses. However, loan terms can vary depending on interest rates, repayment terms, and security, so it’s important to find the right loan option for your new boat if you decide to finance.

On the other hand, buying a boat outright means you don’t have to worry about monthly repayments and interest. When you purchase outright, the boat is now yours and you have the option to sell or trade it whenever you would like.

However, just because you have the funds, it doesn’t mean that purchasing outright is the best solution. Be sure to carefully consider your financial capabilities, forecast maintenance costs, and speak to financial planner or advisor on the best course of action.

Boat Fit Out Costs

Beyond the initial purchase, you’ll need to factor in the cost of fitting out your boat. These costs will vary greatly depending on the type of boat you own and how you intend to use it.

For smaller boats used for recreational fishing or day trips, essential safety equipment like life jackets, fire extinguishers, and flares will be mandatory expenses. If you’re setting up a small game boat, additional costs like fishing gear, depth sounders, and bait tanks will quickly add up. Meanwhile, sailing vessels may require specialised rigging, sails, and navigational equipment that could cost thousands of dollars.

Operating costs should also be considered. These include everything from fuel, engine servicing, and electronic upgrades to comfort additions like canopies or deck lighting. The average-sized boat could see a fit-out cost ranging from a few hundred to several thousand dollars, so it’s important to budget accordingly.

Boat Trailer Costs

If your boat isn’t staying in a marina, you’ll need a boat trailer to transport and store it. The cost of a boat trailer depends on the size and weight of your boat, with prices typically ranging from $1,500 to $8,000 for standard models.

Larger boats may require custom-built trailers, which can push the price up even further. Additionally, trailer registration and maintenance costs, such as tyre replacements and brake servicing, should be factored into your annual expenses.

Boat Maintenance Costs

Let’s be real – whether you’re purchasing a new or used boat, you’re going to have to fork out for regular maintenance and servicing. There is no joy in finally getting that boat you’ve been eying up, to then find yourself struggling to keep it running and looking its best!

Some of the boat maintenance costs you can expect include:

Cleaning Costs

Just like your car, your boat is going to need some regular TLC to look its best, promote longevity and ensure future resale value. When you purchase a boat, it’s important to understand how often you need to clean it, where you’ll be cleaning it, and who will be doing the cleaning – something that often gets overlooked by prospective boat owners.

Professional cleaning services are a simple option if you’re looking to offload the job onto someone else; however, boat cleaning costs can quickly add up – particularly for larger vessels. Conversely, DIY boat cleaning can be a great way to save money, but you’ll also need to make sure that you have sufficient space, tools, and the know-how to get the job done properly. Most owners will opt for a combination of professional and DIY cleaning methods to strike an important balance between keeping costs under control and keeping a boat running and looking its best.

For larger, comprehensive boat cleaning jobs, you may be looking at an annual cost of $2,000 – $4,000, depending on the age of the vessel, size of the boat, and location of the engine (inboard vs. outboard motor).

Engine Maintenance

It goes without saying that engine maintenance is an unavoidable, obligatory cost for every boat owner. How often you need to service the boat engine can vary, but regardless, this is something that will need to be done at regular intervals, and you need to budget for it. Maintenance will include oil changes, repairs, anode replacement, and antifouling – the cost of each service will depend on the engine type.

It’s difficult to fully understand the costs of boat engine maintenance without knowing the exact vessel, as costs can vary from a few hundred dollars to thousands of dollars for a service. As such, we recommend doing some research into the different types of boats you’re interested in to get an idea of what you can expect to budget for engine maintenance.

Hull Maintenance

Similarly, hull maintenance costs for each boat vary depending on the vessel. The hull of a boat is constantly exposed, meaning it can be bashed by the sea, the wind, and a variety of other elements. The resulting maintenance requirements can add up in costs over time, whether it be in the form of painting, sanding, or any other repairs that are needed.

There is no exact figure that can be given for hull maintenance, but it’s important to be aware that hull maintenance is an ongoing cost to consider when you’re purchasing and budgeting a boat.

Boat Running Costs

Boat Fuel

Fuel will always be a primary ongoing cost for boat owners. The annual cost of fuel for your boat will depend on the size of the boat, the engine, and how often you are out on the water. In today’s market, you can expect to pay approximately $1.8-2.30 per litre for diesel and just a bit less than this for unleaded petrol (somewhere between $1.6-2 per litre).

Insurance Costs

Boat insurance is a compulsory cost for all owners. The open water can be unforgiving, so it is crucial to protect yourself and your boat against any damages, liability, or even theft that can occur. Make sure to speak to a few insurance providers, do your research and decide on the best policy for you and your vessel.

Mooring/Storage Costs

Your boat needs a home, and this comes with a cost. The cost of boat storage or mooring varies state-by-state and will often be determined by the size of your vessel. If we take New South Wales as an example, and we look at the mooring costs published by the New South Wales Government, you will get a sense of how much this will cost you depending on the size of your boat.

Vessel Length	High-Rate Area (East Sydney Harbour)	Medium Rate Area (Rest of Sydney & Pittwater)	Low-Rate Area (Rest of State)
To & incl. 7m	$627	$402	$269
7.01m – 8.00m	$838	$540	$328
8.01m – 9.00m	$1,049	$678	$387
9.01m – 10.00m	$1,260	$816	$446
10.01m – 11.00m	$1,471	$954	$505
11.01m – 12.00m	$1,889	$1,223	$612
12.01m – 13.00m	$2,307	$1,492	$719
13.01m – 14.00m	$2,725	$1,761	$826
14.01m – 15.00m	$3,143	$2,030	$933
15.01m – 16.00m	$3,561	$2,299	$1,040
16.01m – 17.00m	$3,979	$2,568	$1,147
17.01m – 18.00m	$4,397	$2,837	$1,254
18.01m – 19.00m	$4,815	$3,106	$1,361
19.01m – 20.00m	$5,233	$3,375	$1,468
20.01m – 21.00m	$5,651	$3,644	$1,575
21.01m – 22.00m	$6,069	$3,913	$1,682
22.01m – 23.00m	$6,487	$4,182	$1,789
23.01m – 24.00m	$6,905	$4,451	$1,896
24.01m – 25.00m	$7,323	$4,720	$2,003
Over 25m	+ $418	+ $269	+ $107

Staff for Boat (Where Applicable)

While this might not be applicable to everyone, it is an important consideration to make if you’re looking at a bigger boat. You might be excited to operate the boat and explore on your own, or you may require the assistance of a captain. Be certain of your confidence and capabilities on the water and from there, whether or not it’s safe to get out there on your own or you’d like some support

If you are purchasing a larger vessel, or a boat for commercial use, then staff costs re a much more relevant consideration to make. Be sure to fully consider if you need a full deck crew, a captain, or an internal crew and how much this will contribute to overall boat ownership costs.

Registration Costs

Registration is another compulsory cost associated with owning a boat. If you are purchasing a boat in Australia and plan to use your boat on our waters, you will require registration.

Vessels up to 3 metres long are charged $70, there is an $11 charge for every extra half metre and a maximum cost of $702 for any vessel length. This makes registration a nice and easy one to budget for.

How to Calculate Total Boat Ownership Expenses

While there is no one size fits all formula to get an exact figure for annual boat ownership costs in Australia, there is certainly common expenses that you can expect when purchasing and maintaining a boat.

Simple Formula to Calculate Annual Boat Ownership Costs in Australia

To make your life a little bit easier, we’ve created the below formula to give you a sense of what the annual cost might look like if you take the plunge and purchase your first boat. As a general guide, we recommend doing some research on these costs, programme in the figure that applies to you in terms of the boat size you have in mind, and it will give you a good sense of what to expect.

(Purchase Price + Maintenance + Slip or Mooring Fees + Insurance + Storage + Fuel + Repairs + Upgrades + Taxes) / number of years of ownership.

Of course, this calculation offers a general guide on what you can expect to pay throughout the year when you buy a boat. If you would like to determine the specific costs, feel free to reach out to our dedicated Boat Loans Finance team, who are the experts in the area of marine finance and will be delighted to speak to you about the costs involved in purchasing a new boat.

How to Manage & Reduce Boat Ownership Expenses

It is evident that the cost of purchasing, owning, and maintaining a boat can add up. However, costs shouldn’t be something that prevents you from purchasing the boat you’ve always wanted and sailing into the sunset – if you have accurately budgeted. Through a few simple measures, you can easily reduce the expenses associated with boat ownership and leave yourself in a comfortable position to enjoy the coast.

Cost-Effective Maintenance

This concept is simple; stay on top of boat maintenance at regular intervals, to avoid being smacked with big payments down the line. Don’t let small issues, become crippling ones. Regular engine checks, cleaning, and waxing will extend the live span of your boat, keep it looking young and fresh, and reduce the need for expensive repairs and restorations down the line. 

Energy Efficient Boat Operation

Fuel in Australia is not cheap, there is no denying it. In terms of fuel efficiency, you can take small actions to reduce your cost, while reducing your impact on the environment too. Consider the fuel efficiency of your chosen boat, avoid unnecessary idling, slow down while you’re on the water and plan your trips properly before heading out for the day.

Buying Used Instead of New

This is a very tangible cost saving technique that you can choose when initially buying your boat. Opt for a used or second-hand boat, rather than a brand-new model and you will save yourself a significant amount of money. Just make sure to thoroughly check the condition of the boat before sealing the deal.

Boat Sharing

Sharing is caring! Boat sharing is a nice way to save yourself some cash and experience the joy of boat ownership with friends or family. This option allows you to split all the costs in terms of purchasing, maintenance, and storage. So why not find your boat partner and keep some more money in your pocket?

Finance Your Boat

In terms of managing costs, financing is always a good option. Boat loans can save you money in the short term, spread costs over time, and allow you to budget accordingly.

Boat Ownership Costs – Final Thoughts

Let’s face it, buying a boat is more a pursuit of the heart, and less of the head. When it comes to buying a boat, there are a myriad of costs associated with the outright purchase, running costs, maintenance, and mooring expenses. Calculating and projecting your costs before your purchase means that you will be in the best possible position to assess your buying power and ongoing ownership expenses.

For many, financing is a great option to make boat ownership a reality. At Boat Loans Finance, we help thousands of buyers every year secure the boat of their dreams and explore our beautiful waters. With a range of finance options, including secured boat loans, private boat sale finance, used boat finance, and even jet ski finance, we’ve got an option for you, no matter your budget or lifestyle. If you’re considering boat finance for your next purchase, contact us today to speak to one of our friendly and knowledgeable team, and start your journey to boat ownership with Credit One!