Shipping parcels from China to Australia: is there tax under AUD 1,000?
Answer
Goods with a customs value of AUD 1,000 or less are free of duty, and no GST is charged at import. But 10% GST is collected at the point of sale by the overseas seller, online marketplace or redeliverer (overseas sellers must register once their Australian turnover reaches AUD 75,000 a year). Above AUD 1,000: duty and GST are collected at the border.
- Applies to
- Postal or courier parcels sent from China to individuals in Australia.
Rules at a glance
| Value | Duty | Who collects GST, and when | Status | Source |
|---|---|---|---|---|
| AUD 1,000 or less | None | Seller, marketplace or redeliverer collects 10% at sale | In force | ATO: GST on low value imported goods |
| Over AUD 1,000 | Per tariff | 10% GST at the border | In force | ABF Customs Notice 2018/13 |
What you can do yourself
- Selling on a marketplace: the platform usually collects GST for you. Check your account settings.
- Selling to Australia from your own site: as your annual turnover nears AUD 75,000, register with the ATO and charge 10% GST.
- If one consignment exceeds AUD 1,000, the buyer pays duty and GST on arrival. Say so in your quote.
When to use a licensed professional
- To register for Australian GST, or if you can't work out the turnover threshold, talk to an Australian Registered Tax Agent.
- If goods are held, or a consignment over AUD 1,000 needs a formal entry, talk to an Australian Licensed Customs Broker.
Check before you pay, and warning signs
- If someone offers to handle GST registration, check their registration number with the Tax Practitioners Board (TPB).
- "Split the order and you won't pay GST" or "just mark it as a gift" are warning signs.
Unknowns
- How China–Australia FTA preferential rates apply: not checked this time.
- Any extra special duty on Chinese goods: none found this time.
- Any change in the last 12 months: none found this time.
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