Importing goods in Australia can be subject to different taxes, rules and procedures.
As an island country, Australia imports many products that businesses sell. Whether it’s a paperback bestseller from the New York Times, a luxury car for a dealership or heavy machinery for the mines, taxes on the imports of these goods is an issue.
However, it’s often a complex area, and those taxpayers that fail to abide by the many rules and regulations surrounding the different imports can face problems with unexpected costs.
Therefore, you need to be aware of the main import taxes in Australia and concerned with. The main taxes are the Goods and Services Tax (GST) and customs duty. In specific circumstances, some imports may have other taxes applied to them on top of that. Other taxes might include the Wine Equalisation Tax for wine imports or the Luxury Car Tax for certain car imports.
Importing goods into the country attracts GST. It is usually about 10% of the value of the taxable importation.
Whether GST registration is applicable, whether GST on a taxable importation (product) is payable by businesses, organisations, and private individuals. If a business is GST-registered and importing goods is a part of their activities, a GST credit may be claimable for any GST paid on the imported goods.
Refunds on Taxes From Importing Goods
Refunds and concession schemes that may be available to importers of goods can include:
- A refund of the customs duty and GST on the import where they subsequently export the good from Australia. The refund falls under the duty drawback rules.
- The Deferred GST Scheme allows GST-registered businesses that import goods to defer the GST payable on import until they lodge their business activity statement (which a registered tax agent like us may be able to help with).
For tax or business queries concerning the importation of goods, registered tax agents can have the knowledge that you need. Speak with us to find out how we might be able to assist.
