Declarations for imported goods
Goods valued at AUD 1000.00 or less are usually exempt from import taxes. However, duties and taxes will still apply on certain goods (tobacco, tobacco products, alcoholic beverages, etc.) regardless of their value.
We recommend first-time or infrequent importers to use the services of a licensed customs broker to clear their goods.
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.
How is import duty Calculated?
1. Convert your purchase into Australian dollars.
2. The import duty is based on 5% of the value of your goods converted to Australian dollars.
3. 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.
Import Declaration (N10) explained
If you plan to clear your goods yourself and the goods have a value of more than AUD 1000.00 you will need to make an Import Declaration (N10 Form) and pay the duties, taxes and charges that apply.
An Import Declaration is a statement made by the importer (owner of the goods) or their agent (licensed customs broker) to Australian Customs that provides information about the goods being imported. The Import Declaration collects details on the importer, how the goods are being transported, the tariff classification and customs value.
How do you much duty is paid?
The duty amount payable is determined by the classification of the goods and other factors including exemptions, concessions & existence of preference schemes & Free Trade Agreements with Australia.
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.
When importing goods, the submission of the import declaration to the ICS will automatically calculate any duty, GST, Wine Equalisation Tax or Luxury Car tax payments that are required.
GST payable on imported goods?
Most Imported goods will be subject to GST however there are some exemptions for some basic foodstuffs, medical aids and other appliances
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 plus the duty payable, and any transport & insurance fees for the imported cargo.
Are you able to defer GST on imports?
GST is payable by all businesses, organizations and private individuals. whether they are registered for GST or not.
A business or organization 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.