Australia low-value tax (GST)
Learn how Dutify helps you stay compliant with Australian tax regulations by applying GST on low-value shipments when your sales exceed AU$75,000 per year.
If you sell into Australia, you may be required to collect and remit GST on low-value shipments. Dutify provides a setting to help you stay compliant with Australian tax regulations.
What is the Australia low-value tax?
The Australian Tax Office (ATO) requires businesses that sell more than AU$75,000 per year into Australia to register, collect, and remit GST. This applies specifically to shipments below the de minimis threshold (currently AU$1,000).
By default, Dutify respects the GST de minimis and does not apply GST to shipments under this value. However, if your business meets the AU$75,000 annual sales threshold, you are legally required to collect GST even on these low-value shipments.
How Dutify handles this
- Default behavior: Dutify ignores GST for shipments below the de minimis threshold.
- With Australia low value tax enabled: Dutify will apply GST to all shipments to Australia, regardless of whether they fall below the de minimis.
This ensures that landed cost calculations correctly include GST when required by the ATO.
Example scenario
- Your business sells AU$100,000 worth of goods into Australia per year.
- You ship an order worth AU$500.
- Normally, GST would not apply (since itโs under AU$1,000).
- With Australia low value tax enabled, Dutify calculates Australian GST on the AU$500 order, ensuring you meet your tax obligations.
- You would then remit the GST directly to the ATO.
Why enable this setting?
- Stay compliant with ATO requirements.
- Avoid penalties or fines from under-collecting GST.
- Provide accurate landed costs to your customers in Australia and avoid customs delays.
How to enable
- Login to your account.
- Go to Settings > API Access and find the Australia low value tax section.
- Toggle the setting to Enable.
- Save configuration.
Once enabled, Dutify will calculate GST on all shipments to Australia, regardless of value.
You can learn more about GST requirements directly from the Australian Tax Office (ATO) here.
Updated 10 days ago