Key takeaways
- GST at 10 per cent generally applies to goods imported into Australia, in addition to any customs duty.
- GST-registered businesses importing for business purposes can generally claim the GST paid as an input tax credit on their BAS.
- The value on which GST is charged is generally higher than the invoice price, because it can include duty and certain transport and insurance costs.
- Exports are generally GST-free if you meet the conditions, including the 60-day rule for evidence and payment or invoicing.
- Duty rates and thresholds change, so confirm the current position with the Australian Border Force and ato.gov.au.
Do you pay GST on imports into Australia?
Yes. GST on imports generally applies at 10 per cent to goods brought into Australia, and it is separate from any customs duty. The tax is collected at the border by the Australian Border Force on behalf of the Australian Taxation Office (ATO). If you are registered for GST and import goods for your business, you can usually claim that GST back as an input tax credit on your next BAS.
That means GST on imports is mainly a cash flow issue for registered businesses rather than a permanent cost. For individuals and unregistered businesses, it is a real cost that forms part of the landed price of the goods.
How is the value of a taxable importation calculated?
GST is not calculated on the price on your supplier's invoice alone. It is calculated on what is called the value of the taxable importation. In broad terms, this includes the customs value of the goods, any customs duty payable, and the international transport and insurance costs to Australia, as the legislation specifically defines them.
This matters for budgeting. A product with a modest supplier price can attract a noticeably higher GST amount once duty, freight and insurance are factored in. Your customs broker or freight forwarder will usually provide a breakdown, and you should keep it for your records.
What is import duty in Australia, and how does it differ from GST?
Import duty Australia is a separate tax on certain goods when they enter the country. The rate depends on the product's tariff classification, where it comes from, and whether a free trade agreement applies. Some goods attract no duty, while others attract a percentage of the customs value.
Because duty can form part of the value on which GST is charged, an incorrect classification affects both amounts. Using a reputable customs broker, and confirming classification and origin before you ship, is worth the cost. Please check current duty rates and any concessions with the Australian Border Force.
Can I claim back the GST I pay on imported goods?
If you are registered for GST and the goods are for your business, you can generally claim an input tax credit for the GST paid on the importation. You will need evidence, normally the import declaration and related documents, and the goods must be for a creditable purpose. GST on goods used to make input-taxed supplies or for private use is not creditable.
The general GST registration threshold is $75,000 in annual turnover. Rideshare operators must register from their first dollar of income. A business that regularly imports will often choose to register even below the threshold, so it can claim credits.
What is the deferred GST scheme?
Some importers can use the deferred GST scheme, which allows GST on imports to be reported on the BAS rather than paid at the border for each shipment. For many regular importers, this improves cash flow, because the GST payable and the credit are reported in the same BAS period.
Eligibility requirements apply, including being registered for GST and meeting the conditions set by the ATO and the Australian Border Force. Please check the ATO website for the current requirements and how to apply.
When is an export GST-free?
Export GST-free treatment generally applies when goods are exported from Australia within a specified time and the other conditions are met. The key timing rule is the 60-day rule. In general, the goods must be exported within 60 days of the earlier of when you receive payment or issue an invoice for them. If you meet this, the sale is GST-free, but you can still claim input tax credits on your related costs.
If the 60 days is missed, the sale may become taxable, and you may owe GST on it. Keep strong evidence of export, such as shipping documents, export declarations and proof of payment, so that you can support the GST-free treatment if the ATO asks.
What does the calculation look like? An illustrative example
The figures below are illustrative only and are not based on a real client. Assume a GST-registered business imports goods with a customs value of $20,000, duty of $1,000 and a transport and insurance component that adds $400 to the GST value. The GST is calculated as 10 per cent of that $21,400 combined amount, which is $2,140. Your broker's import documents present this as a GST-inclusive figure, but the result is the same.
If the business pays that GST at the border, it can claim a $2,140 credit on its next BAS, which means the net GST cost is nil if the goods are for business use. Under the deferred scheme, the GST payable and the credit would appear on the same BAS, with the same net result.
Real calculations depend on the exact valuation rules, so use this only as a guide to how the numbers fit together.
Speak with a registered tax agent before you import
ANH Accounting is a Sydney advisory firm established in 2018, a Xero partner, and a Registered Tax Agent (RN 26258346). If you import or export goods and want to confirm how GST, duty and your BAS fit together, we offer a free 30-minute session. There is no obligation, and it can help you avoid costly errors before your next shipment.
Frequently asked questions
Is GST charged on all imported goods?
GST generally applies to goods imported into Australia, although some goods are exempt or treated differently, so confirm with the Australian Border Force.
Can I claim GST on imports as a credit?
Yes, if you are registered for GST and the goods are for your business, you can generally claim the GST as an input tax credit on your BAS.
What is the difference between import duty and GST?
Import duty is a customs tax based on tariff classification and origin, while GST is a 10 per cent tax calculated on the value of the taxable importation, which can include the duty.
How long do I have to export goods for them to be GST-free?
Under the 60-day rule, goods generally need to be exported within 60 days of the earlier of payment or invoicing.
Do I need an ABN to import goods?
Businesses importing commercially will generally need an ABN, and GST registration is needed to claim credits, so confirm your requirements before you ship.
General information only, last reviewed October 2026. It is not personal advice. Tax law changes, so confirm your circumstances with a registered tax agent or on ato.gov.au.