IN THIS ARTICLE
There is no single charge called import tax in Australia. What importers pay at the border is a stack of separate amounts: customs duty, GST and a set of government charges. Each one is calculated on a different base, which is why two shipments of the same invoice value can cost very different amounts to clear.
This guide explains each layer, shows how they add up on a worked shipment, and covers the legal ways to reduce or defer what you pay.
TL;DR Quick Answers
Import tax in Australia is made up of customs duty, 10% GST and government charges. They apply to most goods valued over AUD 1,000. Duty is often 5% of the customs value, or nil under a free trade agreement. GST is charged on the goods, duty, freight and insurance combined.
What is import tax in Australia?
Import tax in Australia is the total of the duties, taxes and charges collected by the Australian Border Force (ABF) before imported goods are released. It is sometimes called customs tax in Australia, but it is really several separate amounts.
- Customs duty: A tax on the goods themselves, set by their tariff classification and country of origin.
- GST: Goods and services tax of 10% on the value of the taxable importation.
- Import processing charge: An ABF fee for each import declaration.
- Biosecurity charge: A cost recovery charge the ABF collects for the Department of Agriculture, Fisheries and Forestry (DAFF).
- Other taxes: Wine equalisation tax, luxury car tax, and dumping or countervailing duties on certain goods.
When does import tax in Australia apply?
It applies to imported goods with a value over AUD 1,000, and to tobacco, tobacco products and alcohol at any value. Goods over AUD 1,000 must be cleared on an import declaration, and the duty, taxes and charges are paid before release.
Goods valued at AUD 1,000 or less are generally free of duty and GST at the border. That concession does not cover tobacco or alcoholic beverages.
How is customs duty calculated?
Customs duty is a percentage of the customs value of the goods. The percentage comes from the tariff classification, and the customs value is normally the price paid for the goods, converted to Australian dollars.
- Tariff classification: Every product has a classification in the Customs Tariff, which sets its duty rate. Import duty rates in Australia are commonly 5%, and many goods are free.
- Customs value: Usually the price you paid the supplier. It must be expressed in Australian currency using the ABF’s exchange rate.
- Country of origin: Goods that qualify under a free trade agreement can enter at a reduced or nil rate.
The wrong classification means the wrong duty. Paying too little can lead to penalties, and paying too much is money you may not get back without a refund application. This is why most importers have a licensed customs broker classify the goods and lodge the declaration.
Does shipping get added to the value of the goods?
For duty, generally no. For GST, yes. Import duty in Australia is worked out on the customs value, which usually excludes the cost of international freight and insurance. Those costs are then added back in when GST is calculated.
How is GST on imports calculated?
GST on imports to Australia is 10% of the value of the taxable importation. That value is larger than the invoice price, because it includes duty and the cost of getting the goods to Australia.
The ABF adds up four amounts:
- Customs value: The value of the imported goods.
- Customs duty: Any duty payable on the goods.
- Transport and insurance: The amount paid to transport the goods to Australia and insure them for that journey.
- Wine equalisation tax: Only if the goods are wine or similar products.
GST is 10% of that total. It is paid at the same time as the duty.
Which goods are exempt from GST?
Goods that would be GST-free if sold in Australia are also GST-free when imported. The ABF’s examples include basic food, certain medical aids and appliances, and investment-grade precious metals. The definitions are strict, so check before assuming an exemption applies.
Which customs fees does Australia charge on top of duty and GST?
Two fixed charges apply to each import declaration for goods over AUD 1,000: the import processing charge and the biosecurity charge. These are the main customs fees Australia collects at the border, and they are charged per declaration, not per item.
- Import processing charge, AUD 1,000 or less: nil.
- Import processing charge, over AUD 1,000 and under AUD 10,000: AUD 50 for an electronic declaration.
- Import processing charge, AUD 10,000 or more: AUD 152 for an electronic declaration.
- Documentary declarations: AUD 90 or AUD 192 for the same value bands, as paper lodgement costs more.
- Biosecurity charge: AUD 71 for sea freight consignments and AUD 48 for air freight consignments.
Some goods attract extra taxes:
- Wine equalisation tax: 29% on wine and similar fermented drinks, such as cider, mead and sake.
- Luxury car tax: Applies when a car’s GST-inclusive value is above the threshold, which is AUD 80,809 for 2026-27.
- Excise-equivalent duty: Applies to alcohol, tobacco and fuel, at rates matched to Australian excise.
How does import tax in Australia add up on a real shipment?
The charges stack in a set order: duty first, then GST on the larger total, then the fixed charges. The example below uses illustrative figures for one sea freight consignment lodged electronically.
| Charge | How it is worked out | Amount |
|---|---|---|
| Customs value of goods | Price paid for the goods, in AUD | AUD 30,000 |
| International transport and insurance | Cost to ship and insure the goods to Australia | AUD 3,000 |
| Customs duty | 5% of AUD 30,000 | AUD 1,500 |
| Value of the taxable importation | AUD 30,000 + AUD 1,500 + AUD 3,000 | AUD 34,500 |
| GST | 10% of AUD 34,500 | AUD 3,450 |
| Import processing charge | Consignment of AUD 10,000 or more | AUD 152 |
| Biosecurity charge | Goods arrive by sea | AUD 71 |
| Total payable at the border | Duty + GST + charges | AUD 5,173 |
Now take the same shipment with goods that qualify for a nil duty rate under a free trade agreement:
| Charge | How it is worked out | Amount |
|---|---|---|
| Customs duty | Nil rate under a free trade agreement | Nil |
| Value of the taxable importation | AUD 30,000 + AUD 3,000 | AUD 33,000 |
| GST | 10% of AUD 33,000 | AUD 3,300 |
| Fixed charges | Import processing charge + biosecurity charge | AUD 223 |
| Total payable at the border | GST + charges | AUD 3,523 |
The saving is AUD 1,650: the AUD 1,500 of duty, plus AUD 150 of GST that was being charged on that duty. Freight forwarder fees, port charges and delivery are separate commercial costs and are not part of import tax.
How can importers reduce or defer what they pay?
You cannot avoid import and GST obligations, but you can make sure you are not overpaying. There are four main options, and each has conditions.
- Free trade agreements: Goods that meet an agreement’s rules of origin can enter at a reduced or nil duty rate. Importers shipping from China to Australia often use the China-Australia Free Trade Agreement for this.
- Tariff concessions: A tariff concession order can remove duty on goods that have no Australian-made substitute.
- GST deferral: Approved importers can defer GST at the border and account for it on their next activity statement. The ABF lists the conditions, which include having an ABN, being registered for GST and lodging activity statements monthly and online.
- GST credits: A point on GST for importers: businesses registered for GST can usually claim back the GST paid on goods imported for business use.
- Refunds: Duty paid in error can sometimes be recovered through a refund application.
How do you work out your import tax before you ship?
Work through the charges in the same order the ABF applies them. Doing this before you order lets you price the goods properly.
- Classify the goods. Find the tariff classification and its duty rate.
- Check for a lower rate. See whether a free trade agreement or tariff concession applies, and what paperwork it needs.
- Work out the customs value. Convert the price paid into Australian dollars.
- Calculate the duty. Multiply the customs value by the duty rate.
- Add transport and insurance. Add these to the customs value and the duty.
- Calculate the GST. Take 10% of that total.
- Add the fixed charges. Include the import processing charge and the biosecurity charge.
Key takeaways
- No single tax: Import tax is customs duty, GST and government charges added together.
- Threshold: The charges apply to goods over AUD 1,000, and to alcohol and tobacco at any value.
- Duty: Calculated on the customs value, at a rate set by tariff classification and origin.
- GST: 10% of the customs value, duty, transport and insurance combined.
- Fixed charges: An import processing charge and a biosecurity charge apply to each declaration.
- Savings: Free trade agreements, tariff concessions and GST deferral can lower or delay the bill.
Official Resources and Regulatory Compliance
- Australian Border Force (ABF), cost of importing goods: The ABF sets out the duties, taxes and charges that apply to imported goods. Cost of importing goods
- ABF, import processing charges: The ABF publishes the import processing charge and the biosecurity charge for each declaration type. Import processing charges
- ABF, GST and other taxes: The ABF calculates and collects GST, wine equalisation tax and luxury car tax on imports. GST and other taxes
- ABF, import declarations: The ABF regulates how goods over AUD 1,000 are declared and cleared. Import declarations
- Australian Taxation Office (ATO): The ATO administers GST credits and the deferred GST scheme. ATO
- Department of Foreign Affairs and Trade (DFAT): DFAT administers Australia’s free trade agreements and their rules of origin. Free trade agreements
- Department of Agriculture, Fisheries and Forestry (DAFF): DAFF regulates biosecurity and sets the biosecurity cost recovery charge on imports. DAFF
How Kenneth Lloyd Global helps importers get import tax right the first time
Kenneth Lloyd Global (KLG) has 25 years’ experience in global logistics, with foundations in customs brokerage and compliance. Getting duty, GST and charges right comes down to the detail in the import declaration, and that is the work KLG’s customs clearance team does every day.
- Licensed and accredited: KLG holds a customs broker licence and Australian Trusted Trader accreditation, and is a member of the Freight and Trade Alliance.
- Classification and valuation: KLG provides tariff classification and valuation advice, so the duty rate and customs value are correct before the goods arrive.
- Duty savings: KLG reviews free trade agreement eligibility and prepares tariff concession, drawback and refund applications.
- Excise goods: Alcohol and other excise goods are a speciality.
- One provider: Freight forwarding, customs clearance and local transport are handled together, across Australia and New Zealand.
Ask a Licensed Customs Broker
Not sure what import tax in Australia will add to your next shipment? Send through your product details, supplier invoice and shipping terms, and KLG will work out the duty, GST and charges before you commit.
Call Chris Ciantar, Managing Director, on +61 412 983 265 or email chris@kennethlloyd.com.au. Chris is available after hours and on weekends. You can also send your details through the KLG contact form.
Frequently asked questions
How much is import tax in Australia?
There is no single rate. Most goods valued over AUD 1,000 attract customs duty, commonly 5% of the customs value, plus 10% GST on the value of the taxable importation. An import processing charge and a biosecurity charge also apply to each import declaration. Free trade agreements can reduce the duty to nil.
Does shipping get added to the value of the goods?
For customs duty, generally no. Duty is worked out on the customs value, which usually excludes international freight and insurance. For GST, yes. The cost of transporting and insuring the goods to Australia is added to the customs value and duty before the 10% GST is calculated.
Do I pay import tax on goods under AUD 1,000?
Generally, no. Goods with a customs value of AUD 1,000 or less are free of duty and GST at the border, and no import processing charge applies. The exceptions are tobacco, tobacco products and alcoholic beverages, which attract duty and GST at any value. Overseas sellers may still charge GST at checkout.
Can I claim back the GST on imports?
Yes, if your business is registered for GST and the goods are for business use, the GST paid on imports can usually be claimed as a credit on your activity statement. Approved importers can also defer the GST at the border under the ATO’s deferred GST scheme. Customs duty cannot be claimed back this way.