Australia’s import tax system is designed to regulate goods entering the country and ensure proper taxation on imported items. The import tax threshold defines the value of goods that can be imported without incurring customs duties or Goods and Services Tax (GST). This guide covers key details regarding the import tax threshold, exemptions, and compliance requirements.
Table of Contents
Australia Import Tax Threshold
Category
Details
Threshold Value
AUD 1,000 (Goods and Services Tax – GST applies for amounts above this)
Applicability
All imported goods, including personal and commercial shipments
GST Rate
10% GST applies to the customs value exceeding AUD 1,000
Duty Rate
Varies depending on the type of goods and applicable Free Trade Agreements
Low-Value Goods
Items valued at AUD 1,000 or less are exempt from import duties but not GST
Calculation of Import Duties and GST
Key Factors in Calculation:
Customs Value – Total value of the goods (including cost, insurance, and freight).
Duty Rates – Percentage-based charge depending on the product classification.
GST – 10% of the total taxable import value.
Example Calculation:
Item
Value (AUD)
Duty (5%)
GST (10%)
Total Cost
Electronics Device
2,000
100
210
2,310
Goods Exempt from Import Tax
Category
Exemptions
Personal Effects
Clothing, footwear, and personal items owned and used overseas for 12 months or more.
Gifts and Samples
Gifts below AUD 1,000 are typically duty-free, provided they are not for commercial purposes.
Medical Equipment and Supplies
Some medical items may qualify for duty-free entry depending on their classification.
Books and Educational Material
Generally exempt from customs duties but may still incur GST if above the threshold.
Compliance and Documentation Requirements
Required Documents:
Commercial Invoice (includes details of goods, value, and description).
Bill of Lading or Airway Bill for shipment details.
Packing List (if applicable).
Import Declaration Form (lodged with Australian Border Force).
Key Compliance Tips:
Ensure accurate valuation and classification of goods.
Declare all items truthfully to avoid penalties.
Use licensed customs brokers for assistance in complex imports.
Penalties for Non-Compliance
Type of Offense
Penalty
Misdeclaration of Goods
Fines and potential seizure of goods.
Undervaluation
Additional duties, penalties, and prosecution in severe cases.
Non-payment of GST/Duties
Goods held by customs until payments are made, along with extra fines.
Import Tax Threshold Changes and Updates
Historical Changes:
Prior to July 1, 2018: Goods below AUD 1,000 were GST-free.
Post July 1, 2018: GST applies to all imported goods, regardless of value, when sold by overseas retailers.
Future Considerations:
Policies may change, so regular checks with Australian Border Force (ABF) and the Australian Taxation Office (ATO) are recommended.
10 FAQs About Australia Import Tax Threshold
What is the current import tax threshold in Australia?
AUD 1,000 for goods excluding GST.
Do I need to pay GST for items below AUD 1,000?
Yes, GST applies to all imports even if duty-free.
Are gifts exempt from import tax?
Gifts under AUD 1,000 are generally exempt from duties but not GST.
Who collects GST for online purchases from overseas?
Sellers and online marketplaces collect GST at the point of sale.
How is GST calculated on imported goods?
GST is 10% of the customs value, including shipping and insurance.
Are there any penalties for under-declaring item values?
Yes, penalties include fines, confiscation, or legal action.
Can I claim GST refunds on imports?
Businesses may claim GST credits under certain conditions.
Do I need a customs broker for importing goods?
Not mandatory, but recommended for complex shipments.
Are books and educational materials exempt from import duties?
Yes, but GST may still apply above the threshold.
How can I check if my items attract duties?
Use the Australian Border Force tariff classification tool online.
Understanding Australia’s import tax rules can help individuals and businesses comply with regulations while minimizing costs. Regular updates to thresholds and policies make it essential to stay informed about the latest requirements.
