Andrea Millberry-Smith says the boat was badly damaged when Smith bought it from a former company director who had donated to his election campaign.

"It had been for sale but it was in a state of disrepair," she told Beenleigh Magistrates Court. "The inside was filthy and neglected."

Smith faces a committal hearing on perjury and corruption charges.

Ms Millberry-Smith said the purchase was not a sweetener to push through a development application for a 15-storey hotel in Springwood, submitted by SKL Cables.

She told the court she and Smith spent thousands of dollars restoring the boat and purchasing safety equipment.

Earlier this week witnesses were asked about whether Smith received a powerboat from a political donor in exchange for pushing through a hotel development application which exceeded height regulations.

On Tuesday former SKL Cables director Ruquiang Yu said he told Smith about the boat months after the application for the hotel was submitted.

Mr Yu said the boat had been damaged.

Smith's former adviser Mark Pascoe said he first learnt of the boat purchase about nine months after SKL Cables submitted their application.

Both testified that the submission was lodged before Smith became mayor in 2016, and at no point in prior meetings was there any discussion of a boat.

The court heard the application asked for a 15-storey building when the council limit was 10.

Mr Pascoe said Smith wanted taller buildings because of his vision for the region, rather than as a deal with a political donor to support his mayoral bid.

Smith was arrested in 2018 after an investigation by the Crime and Corruption Commission while he was mayor.

The matter is set down for five days and is expected to hear from 12 witnesses.

Australian Associated Press