In this FAQ we take a look at what those payments may be, and how they are applied.
Do imported goods need to be declared?
Yes. Australia’s Customs & Border Protection department requires the owner of the goods (this can be the actual owner or someone that has control of the goods) to lodge an Import Declaration.
This declaration must be lodged electronically via the department’s Integrated Cargo System (ICS). A contracted freight forwarder or customs broker will be able to handle this for you.
Just want to work out how much duty you might need to pay? Click here
Is there a customs duty threshold? How much is it?
Yes. All goods imported to Australia are subject to duty, Goods & Services Tax (GST), plus other taxes that may be applicable according to the class of the goods.
Along with an import declaration, duties and/or taxes that are applied must be paid before the goods are cleared by Customs.
On July 1st, 2018 new legislation was introduced to charge a 10% GST on the price of products under a value of AUD $1000, such as books, jewellery, electronic devices, sports equipment, cosmetics or clothing imported into Australia.
How is the goods’ value calculated?
Most goods are valued by Customs & Border Protection at the transaction value in Australian Dollars.
Customs use the rate of exchange prevailing on the day of export of the goods (not on the day the goods arrive in Australia) as the exchange rate.
To find out what these exchange rates are published in the Government Gazette every Wednesday. This link has instructions on how to find out the exchange rate used by Customs.
How is the amount of customs duty calculated?
The amount payable is determined by the classification of the goods and other factors including exemptions, concessions & existence of preference schemes (e.g. a Free Trade Agreement between the origin country & Australia).
When importing goods, the submission of the declaration to the ICS will automatically calculate any duty, GST, Wine Equalisation Tax or Luxury Car tax payments that are required.
A payment advice is then issued to the owner. Once settled, Customs will clear the goods. On most products imported into Australia, customs duty is 5% of the value of the goods converted to Australian dollars, but this is dependent on the type of goods.
You will need to check with your freight forwarder or Home Affairs for the correct amount of customs duty.
Is GST payable when importing goods?
Yes. Aside from a few exemptions for some basic foodstuffs, certain medical aids and appliances, precious metals and other items, most goods will be subject to GST when imported.
GST is applied at 10% of the Australian dollar value of the goods when imported.
The value of the imported goods is equal to the goods value (as detailed above), plus the duty payable, and any transport & insurance fees for the goods.
Can GST payments be deferred, or credited?
Yes. GST on a taxable importation is payable by all businesses, organisations and private individuals. Whether they are registered for GST or not.
A business or organisation registered for GST, importing goods as part of its activities, may be able to claim a GST credit for any GST paid on those goods.
If you are an importer and registered for GST, you may be able to defer the payment by participating in the Deferred GST Scheme.
This scheme allows GST on taxable importations to be deferred until the first business activity statement lodged after the goods are imported. Participation in the scheme requires certain eligibility criteria to be met:
- have an ABN
- must be registered for GST
- lodge activity statements, online, monthly.
- pay activity statement payments electronically.
Additionally, a business may be ineligible if
- its tax returns & payments are not up to date
- an applicant has been convicted or penalised for certain offences
Full details of applying for the Deferred GST Scheme can be found here
Australian Customs Duty Calculator
We get asked a lot how to calculate the customs duty when importing certain products.
Here is a quick calculation to work out the customs duty on the value of goods. Please note, use this calculator as a guide only as customs duty is highly dependent on the type of goods, but most household items should come under this customs duty calculation.
- Convert your purchase into Australian dollars.
- The import duty is based on 5% of the value of your goods converted to Australian dollars.
- To calculate the GST on imported goods, add the value of the goods in Australian dollars, plus freight, insurances and the import duty. The 10% GST is calculated on this total.
For example, if you purchase jewellery for AUD$500, add the 5% customs duty $25 plus the cost of freight and insurances, say at $42. This gives a total of $567 plus a 10% GST of $56.70. The total cost of goods equals approximately $623.70.
To get the correct import duty and GST totals for imported goods, we recommend contacting a customs broker or freight forwarder who will be able to help.
Resources
For more information about importing goods into Australia, refer to this guide from the Australian Customs & Border Protection Service.
Related Reading
When Australia’s new rules for GST on low-value imports came into effect, it caused quite a stir amongst consumers & overseas business owners alike. The rules can be confusing, so we take a look at how a non-resident business can register for GST to cut through the noise.
How We Help
International Accounting Solutions has over 20 years experience helping businesses establish & expand their operations in Australia.
Speak to one of our accounting outsourcing team today for more information about GST credits & deferments on your company’s goods importations.
Did you find this useful or have a question we’ve not covered? Please share and let us know in the comments below.
Post updated: November 2018
ForestShipping
I have been search online for informationa about Australia Customs duty for days, and I found out this article is just what I need. I will share it with my friends on facebook and twitter, thanks for the good work!
International Accounting Solutions
Thank you Forest Shipping!
John kass
Thank you I found it very useful it is what I needed.
J.kass
Chris
From what i can see it’s not so much the 10% people are going to be charged, it’s the duty cost which as far as I can see by testing the situation in the cart of a US based seller that is going to be a little bit hefty. I put items in the cart that came to $1003, the tax and duty came to $450, that seems to be a little bit more than 10%.
This makes things a little difficult when you consider things like when I have to buy an engine part from the US because nobody in Australia will stock the part and aren’t interested in finding the part and importing it for you, I see this problem all the time.
International Accounting Solutions
Good point, Chris. The new legislation may change how we buy. I’m sure some savvy entrepreneurs will work out a smarter way to purchase goods from overseas. Watch this space. Thanks from the team at INTAS
Rebecca
JUST GOT STUNG!!!!
Australian Government Charge (customs entry fee):
Flat rate fee:
– $83.00 (for declared value of goods between AU $1,000 and $9,999)
– $185.00 (for declared value of goods AU $10,000 and over)
Disbursement Fee (DHL administration fee):
– 3% of (Australian Government Charge + GST + Duty)
Please be advised that the minimum Disbursement Fee will be $20.00 + $2.00 GST.
GST on Importation:
– 10% of (Cost of Goods + Freight + Duty)
Janet
are used goods will be taxed as well? Just wondering since they are used and tax had been applied to it when bought new.
Camille Bennett
My brother has sent gift to daughter in Australia Maori ponaumo value $2000. From Nz Currently held in customs Sydney. They state tax of $289 must be paid prior to release. This is a 21st gift does tax have to be paid
Shwetank
Precisely explained. I’m just beginning my career into import export domain from scratch. Btw how can I know import duty and other charges for specific products e.g. essential oils, herbal extracts etc?
Darcy Savio De souza
Could you recommend a customs broker or freight forwarder as I am planning on import alcohol from India to Australia. So I need the actual breakdown of costs to workout my expenses.
Simon Stratford
I importred 4x alloy road wheels from Hong Kong for use on my own vehicle at a cost of USD1350 plus USD 450 for freight. Australian customs through TNT have charged me AUD 2779.43 in Duty and Taxes. This is more than I paid for the goods in the first place. I disputed the charges twice through TNT and they were no help whatsoever telling me I just had to pay or the consignment would be returned.
The Charges consisted of “Dumping Duty”? of $ 1116.12, and “Countervailing Duty”? of $1009.64 the remainder are charges I expected.
I have paid the invoice from customs now, however I still believe it’s a mistake and as the items were purchased for personal use and not for commercial gain, that I am due a refund or at the very least what and why these charges apply to a private individual.
Any thoughts? Also no one at TNT has been able to explain to me what “Countervailing Duty” means!
Paul Harris
Simon,
Have a look at https://www.industry.gov.au/regulations-and-standards/anti-dumping-and-countervailing-system
It explains the terms you mentioned, but also contains contact information that you could possibly use to object to the charges.
Joseph Meledath Joseph
Hi is border force / customs charging GST at border to consumers who purchase goods from overseas supplier who does not have GST registration with ATO? Please advise
BERNARD SMITH
We are being right royally screwed by the government even though they don’t even try to protect local industry.
Barry Hunt
Helpful but exemptions to duty would have been handier. IE Are motorcycle parts exempt from duty? Info I have is, they are exempt. Still can’t be sure.
Josh
Hi I want to buy a hand crank can sealer frame it’s $40 dollars usd and I also want to buy in a seperate order from another company hand crank can sealer parts valued at $75 usd how much would I roughly be required to pay and when do I have to pay it and how will I know that I have to pay it
Zane
Is import duty payable if I am swapping/trading an item with an individual from the US? e.g. vintage watches swapped that are valued more than the $1K threshold but no money changes hands. i.e. Straight swap.
Michael Wakefield
I am all for supporting Australian businesses. However across a wide range of products in Australia over-charging is typical. For example a Lambda sensor for a BMW costs locally approximately $450 AUD. The same part can be had ex Germany, landed in Australia inclusive of all taxes and freight costs for less than $200 AUD.
We need to be reminded how the recent inclusion of GST and import duty on goods to a value of less than $1K AUD came about. This was as a result of Government lobbying by the same businesses that are over charging us! Case in point, the same Lambda sensor should retail in Australia for no more than $225 AUD inclusive of GST.
Richard Linsen
Hi Guys,
We are importing a bulldozer into Australia for a customer( our first import).
Total price is $117,000usd.
25 ton
Needs to be on a platform, because it’s to big for a container.
Can you tell me the Australian import tax/ duties would be?