The A$1,000 line
| Value of the consignment | What happens |
|---|---|
| A$1,000 or less (not tobacco or alcohol) | No duty, GST or import processing charge at the border. Air or sea cargo needs a Self-Assessed Clearance declaration; mail does not. GST is usually charged by the overseas seller or online marketplace instead. |
| Over A$1,000 | Full import declaration, customs duty, 10% GST and an import processing charge. |
Sources: ABF import declarations, ABF GST on low value goods.
How import GST is worked out
GST is 10% of the value of the taxable importation (VoTI): customs value + customs duty + international transport and insurance to Australia + any wine equalisation tax (ABF; GST Act 1999 section 13-20).
ChAFTA vs general rate: many goods have a 5% general duty. Goods of Chinese origin under the China-Australia Free Trade Agreement are Free on most lines if you hold proof of origin. Without it, the general rate applies, and GST is charged on top of the duty.
Worked example (ABF's own figures)
| Step | General rate 5% | With ChAFTA (Free) |
|---|---|---|
| Customs value | A$2,000.00 | A$2,000.00 |
| Duty | A$100.00 | A$0.00 |
| Transport and insurance | A$150.00 | A$150.00 |
| VoTI | A$2,250.00 | A$2,150.00 |
| GST 10% | A$225.00 | A$215.00 |
| Duty + GST | A$325.00 | A$215.00 |
The first column is the example published by the ABF. The ChAFTA column applies the same method with a Free rate. The import processing charge is not included.
FAQ
Is there GST on imports from China under A$1,000?
Not at the border, except tobacco and alcohol. Overseas sellers and marketplaces registered for GST charge it at checkout under the low value goods rules. Source: ABF.
How is GST calculated on imported goods in Australia?
10% of the value of the taxable importation: customs value plus duty plus international transport and insurance plus any wine equalisation tax. Source: ABF; GST Act 1999 section 13-20.
Do I pay duty on goods from China?
Many lines have a 5% general rate, but goods of Chinese origin with ChAFTA proof of origin are Free on most tariff lines. Check your line in the tariff.
What does a A$2,000 shipment cost in tax?
Using the ABF example with a 5% duty and A$150 freight: duty A$100, GST A$225. With ChAFTA (Free duty), GST is A$215.
Official sources
- ABF: GST and other taxes
- ABF: GST on low value goods
- ABF: import declarations and the A$1,000 threshold
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