Australian Import Tax Explained: How Duties and GST Are Calculated

Unexpected customs charges can turn a bargain into a costly surprise. Many importers only discover these extra costs once their goods are held at the border. Import tax in Australia includes customs duty and the Goods and Services Tax (GST), and how much you pay depends on the value, category, and origin of your goods.

This guide breaks down the key rules and shows step-by-step how duties and GST are calculated. We will also highlight the $1,000 threshold and give practical examples so you can estimate costs accurately before committing to a purchase.

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How Import Tax Works in Australia

Import tax in Australia is made up of customs duty and the Goods and Services Tax (GST). Duty is a percentage of the goods’ customs value, and GST is 10% of the total taxable value, which includes duty, shipping, and insurance.

Goods under AUD $1,000 are usually exempt, but alcohol, tobacco, and restricted items always attract tax (explained below). Additional costs such as biosecurity inspections, storage, or customs clearance fees may also apply.

Follow these four steps to calculate import tax:

1. Work out the customs value Free On Board (FOB). This is the price paid for the goods themselves, excluding shipping or insurance.
2. Apply the duty rate for the product type and Harmonised System (HS) code.
3. Add shipping and insurance to find the GST base.
4. Calculate GST as 10% of this base.

Trade agreements can reduce or remove duties, making your product’s origin just as important as its category. Couriers & Freight provides customs clearance services to help you manage these requirements.

What Is Import Tax in Australia?

Import tax in Australia is made up of two main components:

Customs duty

A tariff charged as a percentage of the goods’ customs value. It is designed to protect Australian industries and generate revenue.

Goods and Services Tax (GST)

A 10% tax that applies to most goods and services. For imports, it is calculated on the total taxable value, which includes the customs value, duty, shipping, and insurance.

For example, a $1,500 clothing order may attract 10% duty, with GST on top of that. Some items, such as alcohol, tobacco, and fuel, also attract excise duty in addition to customs duty and GST. You can find the full list of excise goods on the Australian Taxation Office (ATO) website.

The $1,000 Import Tax-Free Limit

Goods with a customs value under AUD $1,000 are usually exempt from both customs duty and the Goods and Services Tax (GST). The customs value is the price paid for the goods themselves, excluding shipping, insurance, or other costs. This threshold makes small imports easier for individuals and businesses, but it doesn’t apply to every product.

Exceptions (always taxed regardless of value):

• Alcohol
• Tobacco products
• Restricted or regulated goods such as weapons, hazardous materials, or items posing a biosecurity risk

For example, if you buy a $900 piece of sports equipment from overseas with $150 shipping, no duty or GST will be charged because the customs value is under $1,000, even though your total spend is $1,050.

Once goods exceed the $1,000 threshold, shipping, insurance, and any applicable duty are added to the customs value to form the GST base. This can significantly increase the total tax payable.

Step-by-Step: How Duties and GST Are Calculated

Here’s how to calculate import tax for your shipment:

1. Find the customs value (FOB): This is the price you paid for the goods themselves, excluding transport and insurance. Customs values are assessed in Australian dollars (AUD), so exchange rates at the time of assessment may affect your final costs.
2. Apply the duty rate: Multiply the customs value by the applicable duty percentage for the product’s HS code to find the duty amount.
3. Add shipping and insurance: Include these costs along with the duty amount to form the GST base.
4. Calculate GST: Apply 10% to the GST base (customs value + duty + shipping + insurance).

Example calculation:

• Customs value: $2,000 (car parts from the USA)
• Duty rate: 5% → Duty = $100
• Shipping and insurance: $300
• GST base: $2,000 + $100 + $300 = $2,400
• GST: 10% of $2,400 = $240
• Total import tax = $100 (duty) + $240 (GST) = $340

Always verify your product’s duty rate and HS code on official customs documentation. Free Trade Agreements may reduce or remove duty, while certain goods, such as vehicles and excise items, can attract additional taxes or rules.

Australian Import Duty Rates by Product

Import duty rates in Australia depend on the product type, its HS code, and whether a Free Trade Agreement (FTA) applies with the exporting country. Here are some common examples:

Always confirm your product’s HS code and duty rate using the official Australian Border Force Tariff Schedule before importing. Even minor classification changes can affect the duty payable. Trade agreements can also lower or remove duty, so confirming eligibility can save significant costs.

Importing from Specific Countries

The country you import from directly affects the duty payable. Australia has Free Trade Agreements (FTAs) with many nations, which can reduce or remove duties on qualifying goods. Goods from non-FTA countries generally attract standard duty rates. Even with an FTA, your goods must meet the rules of origin to qualify. Remember, GST still applies even when duty is reduced to zero

Here’s how this applies to some of Australia’s major trading partners:

Importing from China to Australia

Some products benefit from the Australia–China FTA, but many still attract standard duty rates. Checking the HS code is essential to confirm eligibility.

Importing from the USA to Australia

Most goods are duty-free under the Australia-USA FTA (AUSFTA). GST still applies to taxable shipments to the United States.

Importing from the UK to Australia

The Australia-UK FTA (A-UKFTA) removes most duties for qualifying goods, which can significantly reduce overall import costs.

Importing from ASEAN Countries

Under the ASEAN–Australia–New Zealand Free Trade Agreement (AANZFTA), many goods from countries such as Vietnam, Malaysia, and Thailand qualify for reduced or zero duty. To benefit, importers must provide a Certificate of Origin that proves the goods were produced in an ASEAN member state.

How Couriers & Freight Can Help

Couriers & Freight helps Australian importers manage the complex process of customs clearance, ensuring shipments comply with regulations and avoid delays. We provide international freight solutions tailored to your goods, their country of origin, and delivery timelines. 

Our team guides you through documentation, duty and GST calculations, and estimating landed costs so you can budget with confidence.

We also advise on HS code classification and Free Trade Agreement (FTA) eligibility, helping you legally minimise duties where possible. From one-off purchases to ongoing shipments, we streamline the process from supplier to destination, saving you time, money, and compliance headaches.

Get a customised import cost estimate today and expert advice for your next shipment.

Simplify Your Import Tax & Customs Clearance

Avoid unexpected fees and delays at the border. Get accurate duty and GST calculations with expert customs support from Couriers & Freight.

Get a Quote Now