Every commercial importer asks the same first question: what will I pay at the border? The answer has two parts — customs duty and GST — and both are calculated from numbers you can know before the goods ship.
Customs duty
Duty is charged as a percentage of the customs value of the goods — normally the price you paid, converted to AUD at the exchange rate applying on the day of export. The percentage depends on the goods’ tariff classification under the Working Tariff.
- The general duty rate for most manufactured goods is 5%.
- Many goods are duty-free by classification, by tariff concession order (where no Australian manufacturer makes an equivalent), or under a free trade agreement.
- FTAs matter: goods that qualify under agreements such as ChAFTA (China) or AUKFTA (UK) can enter at 0% — but only with correct origin documentation claimed at the time of entry.
Classification is where importers win or lose. Two plausible tariff headings can carry different duty rates, and the difference compounds on every future shipment.
GST on imports
GST is 10% of the value of the taxable importation — which is not just the price of the goods. It is:
| Component | Included in GST base |
|---|---|
| Customs value of the goods | Yes |
| Customs duty paid | Yes |
| International transport and insurance | Yes |
So GST is charged on the goods plus the duty plus the freight. Registered businesses generally claim this GST back as an input tax credit on their BAS, and regular importers can smooth cash flow through the deferred GST scheme, which moves import GST from a payment at the border to a line on the BAS.
The $1,000 threshold
Consignments valued at or under AUD $1,000 generally enter free of duty at the border via a Self-Assessed Clearance, with GST on low-value goods typically collected at the point of sale by the overseas seller or platform. Above $1,000, a full import declaration is required and duty and GST are payable before release.
Legitimate ways to pay less
- Get the classification right — and reviewed. Overpaying duty through lazy classification is common and refundable for past entries, but only within time limits.
- Claim the FTA you qualify for, with compliant certificates of origin arranged before shipment.
- Check for tariff concession orders covering your goods.
- Use deferred GST if you import regularly — it’s a cash-flow improvement with no downside for most registered importers.
- Review past entries — refunds of overpaid duty can be claimed retrospectively.
A written classification and duty review before your next shipment usually costs less than the duty it saves. Call 1300 247 019 or request a quote and we’ll look at your product list.