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GST on low value imported goods

From 1 July 2018, Australian goods and services tax (GST) will apply to sales of low value goods imported by consumers into Australia.

Businesses that meet the registration threshold of A$75,000 will need to:

  • register for GST

  • charge GST on sales of low value imported goods (unless they are GST-free)

  • lodge returns to the ATO.

These businesses may be merchants who sell goods, electronic distribution platform operators or re-deliverers. For goods imported in a consignment over A$1,000, any GST, customs duty and clearance charges will be charged to the importer at the border under existing processes.

This new law is designed so that businesses:

  • will not charge GST on a sale when GST will be charged at the border, because an item is

  • worth over A$1,000

  • a tobacco product, or

  • alcoholic beverage

  • will not need to charge GST on a sale if it is clear that multiple goods will be shipped to Australia in one consignment worth over A$1,000 – GST will be charged at the border instead.

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