How do I Pay Import Duty and Tax in Australia?

How do I Pay Import Duty and Tax in Australia?

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Maybe you’re new to the country or you are importing goods for the first time in Australia. No matter what your situation is, so far as you’ll be importing goods into the country, then it’s certainly necessary you make yourself familiar with the way importation works in this country.

To start with the basics, you first need to know what is import duty, what duty is payable on imported goods and even what is duty free import.

This information is vital because even though the process of importing is relatively simpler and easier than exporting, it is quite easy to run afoul of the law.

In order to avoid such an unpleasant scenario, having a functioning understanding of little things like what is import duty really matters. To that end, here’s all you need to know about importing and import duty tax in the country.

What Is Import Duty

As we have previously already established, you can choose to import items into the country in any capacity and for any purpose provided that the items in question aren’t illegal and you follow due process when carrying out the exercise.

You may already know this, but you’re technically an importer, even if you’re shipping in only your favorite book or a coffee mug you saw online. What this means is that for the most part, many of the laws, rules and regulations that apply to big shipping companies also apply to you as well.

This is one reason why it is so crucial you make yourself intimately familiar with details like your Import Tax and Import Duty liabilities before you start shipping into Australia.

From here, it becomes easier to determine factors like what duty is payable on imported goods and even what is duty free import.

Now that you understand these basics, we can proceed.

In Australia, most goods attracts an import duty is essentially 5% of the determined value of your imported goods in Australian currency.

What Duty Is Payable on Imported Goods

First, you must remember that import duty and tax is levied on your imported goods only after the value of the merchandise in question has been determined in Australian dollars.

An important highlight to note is that in July 2018, the country implemented a new policy that levies a sum of 10% goods and services tax on every imported product valued at under $1, 000 (AUD). This levy covers goods like,

  • Electronic appliances,
  • Sports gear,
  • Reading materials,
  • Clothing,
  • Jewellery and other items brought into the country.

In the same vein, most goods imported into the country also have to pay customs duty which is 5% of the value of the products. However, payment of this levy is significantly determined by the type of imported goods in question.

Due to this, it is very important you consult with Home Affairs or your freight shipping company to ascertain what duty is payable on imported goods you plan on bringing in.

What is Duty Free Import

In Australia, you can import duty free, depending on certain factors. For example,

  • Individuals under the age of 18 are given the liberty of bringing in goods valued at AUD $450 or below absolutely tax free.
  • For people at or over the age of 18, the limit is extended to AUD $999.

How do I Pay Import Duty and Tax in Australia

Now that you have a background understanding of the basic requirements surrounding the factors influencing what duty is payable on imported goods and what is import duty, the question becomes; how do I pay import duty and tax in the country?

The most important thing you need to know here is that every import item valued at or above AUD $1, 000 must go through Australian Customs, regardless of route of entry into the country.

To pass through Customs, you must tender documents like import declaration and paying duty, GST and other similarly relevant papers.

You can’t get this without paying import duty where applicable.

To facilitate a speedier customs clearance process, it is always advisable to enlist the aid of a proficient customs broker.

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