How Do Australian Import Taxes Work?

Import taxes are taxes that you pay on things you’re bringing into the country. You must know what import taxes are due if you enter the import-export business. That is true of Australia, just as it is anywhere else.

You can use an Australian import tax calculator to help you if you’re getting started in this industry. You should also know basic concepts that go into Australian import taxation. We’ll discuss them now.

Australia Has Trade Agreements in Place

First, you should understand that Australia has trade agreements with several countries. There are rules governing trade between Australia and these countries that you can refer to when trying to bring in products.

Almost anything that comes into Australia is subject to an import tax. There are a few items that might come with an exemption or concession, but that’s rare.

The Basics

If you’re importing most goods into Australia, you must pay custom duties. This applies when you’re bringing in products that, in totality, cost or are worth more than AU $1,000. You should also note that if you’re bringing in tobacco or alcohol products, you will get no exemptions from taxes or duties, regardless of how much you’re bringing in.

There is also what is called a Goods and Services Tax, which you will sometimes see abbreviated as GST in this industry. That tax comes to 10% of the total cost of the goods.

However, it also includes the import duty, freight duty, and insurance. To get an accurate amount of tax you must pay through GST, you must factor in all of that as well.

What About Additional Taxes or Duties?

As is true with the majority of countries, there are additional taxes or duties that apply only if you’re bringing in certain commodities. These taxes usually apply only to high-end items.

In Australia, you must pay an extra tax when you bring in wine and luxury cars. The Wine Equalization Tax (WET) and Luxury Car Tax (LCT) are the names of these frameworks that the Australian government has in place.

Additional Details

You’ll find that you can benefit from concessions in some situations or when bringing in particular goods. For instance, there’s something called a Tariff Concession Order. This lets you import commodities into the country with no duties if there aren’t any Australian manufacturers of those goods. This is why some importers specialize in products that are not common to Australia.

There’s also the Tradex Scheme, which stipulates that goods re-exported from Australia will be free from GST and import duties. If you’re bringing in any goods that you’ll store in local warehouses before you export them to overseas clients, this can save you some money.

If you’re getting into the import business in Australia, it would behoove you to learn all of the most minute details of this industry. Only then can you feel sure that you’re complying with all laws and also saving all the money that you can when importing certain commodities.