Australia

The Commonwealth of Australia is the largest economy in Oceania, the 14th largest economy in the world (by GDP) and has the 11th highest income per capita. It boasts a population of 27.5 million people, with an Organisation for Economic Co-operation and Development (OECD) comparative price level of 126, meaning Australians pay an average of 26% more (domestically) than Americans pay for the same product – making Australia an excellent cross-border ecommerce destination.

Key info

• Country code (ISO 3166-1 alpha-2): AU
• Country code top-level domain (ccTLD): .au
• Currency (ISO4217): Australian Dollar AUD
• World Trade Organization (WTO) Status: Member

Duty information

The ad valorem Most Favored Nation (MFN) duty rates range from 0% to 5% with the average duty rate being 0.03% across the entire tariff and 4.99% across goods with an ad valorem rate of more than 0%. The majority of goods from WTO member countries going to Australia are duty free and duty is calculated using the Free On Board (FOB) valuation method.

Sales tax

Goods and Services Tax (GST) is applied at a rate of 10% on most goods. Some goods are exempt from GST, including but not limited to:

• Certain food & beverages
• Money
• Certain medical aids
• Personal effects

An extensive list of GST exemptions can be found on the ABF GST exemptions page.

GST is calculated on the Value of the Taxable Importation (VoTI), which is a sum of the cost of the goods, transportation, duty and Wine Equalization Tax payable and is generally charged at the border (at the same time duty and other taxes are collected).

Additional taxes & charges

Import Processing Charge (IPC)

An Import Processing Charge (IPC) is collected on imports over the de minimis value of $1,000 AUD. The rate of the IPC depends on the lodgement type and value of the import:

Others

• A Biosecurity Charge of AUD $46 (air) or AUD $68 (sea) applies to consignments over AUD 1,000 that require biosecurity assessment (i.e. when an import declaration is referred to the Department of Agriculture for processing).
• A Wine Equalization Tax (WET) of 29%, which is applied to certain alcohol.
• A Luxury Car Tax (LCT) of 33%, which is applied to certain vehicles.

De minimis thresholds

Australia has a customs duty de minimis of AUD 1,000, below which no duty is payable (with the exception of alcohol and tobacco products, which are always subject to duty and taxes regardless of value).

For Goods and Services Tax (GST), the law does not provide a de minimis threshold - all imports are in principle taxable. However, the method of collection depends on the value of the consignment and the seller’s annual Australian sales turnover:

• Low-value goods (≤ AUD 1,000):
  • If the overseas seller has annual sales to Australia above AUD 75,000, they must register for GST, charge 10% GST at checkout, and remit it to the Australian Tax Office (ATO). More information here.
  • If the seller is below the AUD 75,000 threshold, they are not required to collect GST. In this case, the ABF does not impose GST at the border on consignments ≤ AUD 1,000.
  • Result: Low-value goods from small sellers can enter Australia GST-free, creating an effective GST de minimis.
• High-value goods (> AUD 1,000):
  • GST is always collected at the border by the ABF, calculated on the Value of the Taxable Importation (VoTI), together with any duty and additional taxes payable.

Prohibited goods

The Australian Border Force (ABF) is one of the most robust customs agencies in the world, known for vigilant enforcement of import laws, strict biosecurity measures, and high operational standards.

A wide range of goods are either prohibited or heavily restricted from entering Australia. These include:

• Firearms, firearm parts, accessories, and ammunition
• Explosives
• Asbestos
• Signal jamming devices
• High-powered laser pointers
• Certain novelty lighters
• Certain live animals, plants, and fish species (subject to biosecurity restrictions)

An extensive list of prohibited goods can be found on the ABF prohibited goods website.