Import duty & GST
Import Duty and GST in Australia — How It Is Calculated, with Worked Examples
Duty and GST are not mysterious, they are just poorly explained. Once you can see the calculation, you can model landed cost before you place an order rather than discovering it after the container arrives.
The calculation
The five numbers that determine what you pay
Every commercial import into Australia is assessed the same way. Get these five inputs right and you can forecast your landed cost accurately.
Customs value
Normally the price you paid for the goods, converted to Australian dollars at the applicable rate. For most importers this is the FOB value on the commercial invoice.
Tariff classification
The Harmonized System code that describes your goods in the Australian tariff. This determines the duty rate, and it is the input most often wrong.
Country of origin
Not where the goods were shipped from, but where they were produced. Origin determines whether a free trade agreement concession is available.
International transport and insurance
The cost of getting the goods to Australia. This is not part of the customs value for duty, but it is part of the GST base.
Duty rate
Commonly 0% or 5% for many manufactured goods, higher for some categories such as certain clothing and footwear, and potentially 0% under an FTA or a tariff concession order.
Worked examples
Three worked examples
These are illustrative only, using round numbers to show the mechanics. Duty rates depend on classification and origin, and the figures below are not a quote.
Example 1 — goods attracting 5% duty, no FTA claim
| Line | Calculation | Amount |
|---|---|---|
| Customs value of goods | $50,000 | |
| Duty at 5% | 5% × $50,000 | $2,500 |
| International transport and insurance | $4,000 | |
| Value of the taxable importation | $50,000 + $2,500 + $4,000 | $56,500 |
| GST at 10% | 10% × $56,500 | $5,650 |
| Total payable to government | duty + GST | $8,150 |
Example 2 — identical shipment with a valid FTA claim
| Line | Calculation | Amount |
|---|---|---|
| Customs value of goods | $50,000 | |
| Duty at 0% under FTA | $0 | |
| International transport and insurance | $4,000 | |
| Value of the taxable importation | $50,000 + $0 + $4,000 | $54,000 |
| GST at 10% | 10% × $54,000 | $5,400 |
| Total payable to government | duty + GST | $5,400 |
Example 3 — small air shipment
| Line | Calculation | Amount |
|---|---|---|
| Customs value of goods | $3,000 | |
| Duty at 5% | 5% × $3,000 | $150 |
| Air freight and insurance | $900 | |
| Value of the taxable importation | $3,000 + $150 + $900 | $4,050 |
| GST at 10% | 10% × $4,050 | $405 |
| Total payable to government | duty + GST | $555 |
Reduce it legitimately
Five legitimate ways to pay less
- Claim your free trade agreement entitlement. Australia has agreements covering China, ASEAN, New Zealand, the USA, Japan, Korea, India, the UK and the CPTPP members. A valid origin document can remove duty entirely.
- Check for a tariff concession order. Where no substitutable goods are made in Australia, a TCO may allow duty-free entry. Checking is a routine part of classification.
- Get the classification right. Similar-looking goods can sit in different tariff lines with different rates. A considered classification, documented in writing, is both cheaper and safer than a guess.
- Register for Deferred GST if you qualify. Instead of paying import GST at the border, it is reported through your monthly BAS — a pure cash flow benefit for regular importers.
- Review past entries for refunds. If duty was overpaid through misclassification or a missed concession, a refund may be available within the statutory time limit.
What is not legitimate: understating values, describing goods vaguely to attract a lower rate, or splitting shipments to stay under thresholds. The importer carries the liability, and it lasts for years.
FAQ
Duty and GST questions
Do I pay GST on imports if I am GST registered?
Yes, GST is generally payable at the border, but if the goods are for your business you can usually claim it as a credit in your next BAS. Regular importers should look at the Deferred GST scheme, which removes the cash payment at the border.
What is the low value threshold?
Goods with a customs value at or below the low value threshold are generally not subject to duty and GST collected at the border, though GST may apply at the point of sale for goods sold by overseas suppliers to consumers. Commercial importers should assume duty and GST apply and plan accordingly.
Is duty calculated on the freight cost?
No. Duty is calculated on the customs value of the goods. However, GST is calculated on the customs value plus duty plus international transport and insurance, so freight does increase your GST.
How do I find the duty rate for my product?
It depends on the tariff classification, which requires interpreting the goods against the Australian Harmonized Tariff and its rules. We classify goods as part of our customs clearance service and will confirm rates before you order.
What documents do I need to claim a free trade agreement rate?
Generally a valid Certificate of Origin or Declaration of Origin that satisfies the specific agreement, held before the declaration is lodged, and matching the goods and classification. Requirements differ between agreements.
Are there other charges besides duty and GST?
Yes — an import declaration processing charge, biosecurity fees, and potentially inspection or treatment costs. These are small relative to duty and GST but should be in your landed cost model. See freight costs explained.
Can you tell me my duty rate before I place an order?
Yes, and this is the most useful moment to ask. Send us product details, photographs and the supplier’s description and we will advise on likely classification and rate.
Important: this guide is general information for Australian businesses, not customs, tax or legal advice. Rates, thresholds, concessions and free trade agreement rules change. Always have the position confirmed for your specific goods before relying on it.
Read next
More on duty, GST and concessions
Related guides and services covering the questions importers and exporters usually ask next.
- Tariff classification and HS codes — the classification that decides your rate
- Free trade agreement duty claims — how to make a claim that actually holds
- Importing to Australia guide — the full process, including deferred GST
- Commercial imports — duty and GST managed as part of the shipment
Want your duty rate confirmed before you order?
Send us the product details. We will advise on likely classification, duty rate and any concession available — before you commit.