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New Advice to Overcome Import Tax Hurdles

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Custom Brokers aim to overcome your freight hurdles and provide import tax advice. Get back to making money for your business and trust our team to manage your import tax.

General Sales Tax (GST)

General Sales Tax (GST) is a very common tax in Australia and applies to most goods and services we use in Australia. GST is calculated at a flat 10 percent of the landed price and is paid at the time of importation. Any GST paid can be off-set against your liabilities when lodging your Business Activity Statement (BAS).

Note: Certain basic foods and medical supplies/appliances are GST Free. If you are importing these types of products and would like confirmation of GST status please check with the team at Custom Brokers.

Customs Duty

Customs Duty may be levied on imported goods. The rate for most goods does not exceed 5% of the FOB value (generally purchase price and costs up to place of export). There are tens of thousands of potential HS Codes that a Customs Broker will consider when classifying your goods. We always recommend the use of a licensed customs broker for HS Code confirmation.Section, Chapter legal notes and interpretative rules need to be read in order to arrive at the correct classification. 

The incorrect classification of goods can lead to penalties from customs and any short paid duties will also need to be repaid. Customs can request entry amendment up to 4 years after the original importation occurred.

We look to minimize customs duty on your imports through the use of Free Trade Agreements, Tariff Concession Orders and Schedule 4 By Laws. Guarantee the applicable duty rate for your goods by requesting tariff advice for your products. Get in touch with the team at Customs Brokers for professional advice on all the duty minimisation tools available.

Anti-Dumping Duties

Anti-Dumping Duties are levied on products deemed to have been dumped in Australia at a lower wholesale price from another country. Dumping products into Australia has a devastating impact on Australian manufacturing. The Anti-Dumping Commission can investigate cases of alleged product dumping into Australia and based on the applicable report may levy additional Anti-Dumping Duty on those specific imported products.

Information relating to the actual amount of Anti-Dumping Duties is not publicly published and rates can vary between suppliers. The Anti-Dumping Duty rates can be requested from the Anti-Dumping Committee by bonafide importers looking to import the product.

Customs Duty

A list of products subject to Anti-Dumping measures can be found here. We recommend before purchasing any goods for the first time that you seek professional advice. Our Customs Brokers will check if your product is classified to a heading subject to Anti-Dumping measures.

Luxury Car Tax (LCT)

Australian Import Tax Luxury Car Tax LCT Ferrari 

Customs Clearance of cars can attract many Australian import taxes such as Customs Duty, GST & Luxury Car Tax (LCT). LCT is payable by the importer if the GST inclusive landed price of the car exceeds AUD 76950. This value excludes all local charges incurred within Australia such as customs clearance, port charges, and transport. LCT is taxed at the rate of 33% for each dollar exceeding the LCT indexed value.

For example a vehicle with a landed price of AUD 90000 will be taxed Luxury Car Tax based on (90000 minus 76950) multiplied by 0.33. LCT payable is AUD 4306.50.

Note for Fuel Efficient Vehicles the threshold of LCT is a little higher at AUD 89332. A fuel-efficient car has a fuel consumption that does not exceed seven litres per 100 kilometres as a combined rating under the vehicle standards in force under section 7 of the Motor Vehicle Standards Act 1989.

The values indicated above are correct as of 23/24 financial year and are indexed annually.

LCT does not apply to:

      • to a car exported as a GST-free export

      • to a car that is (or is intended to be) registered for use as an emergency vehicle such as an ambulance, firefighting vehicle, police vehicle, or search and rescue vehicle

      • to a motorhome or campervan, or a commercial vehicle designed mainly for carrying goods and not passengers

    Excise Tax

    Australian Import Tax Excise Tax Spirits Alcohol

     

    Excise tax applies to *Alcohol, Tobacco and Fuel/Petroleum products. Get in touch with the team at Custom Brokers to determine if your product is subject to excise tax, and what the current rates are.

    *Wine products with an alcohol content less than 22 percent are taxed separately under Wine Equalization Tax (WET).

    Wine Equalization Tax (WET)

    Australian Import Tax WET Wine Equalization Tax

     

    Wine Equalization Tax (WET) applies to a range of beverages if the volume of ethyl alcohol exceeds 1.15 percent. These beverages include:

        • grape wine (including sparkling and some fortified wine)

        • grape wine products (such as marsala)

        • fruit wines and vegetable wines

        • cider and perry (although, WET doesn’t apply to all cider and perry)

        • mead

        • Sake

      WET is applied at a rate of 29% calculated on the landed price of the goods excluding GST.

      Note wine with an alcohol content of 22% or higher are subject to Excise Tax.

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