Australian Import Tax: Know Before You Import!

Are you considering importing goods to enhance your business operations and want to know what the Australian import tax is?

Look no further! Dive into this comprehensive Business Kitz article to acquire the essential knowledge and insights required for a successful import venture. Whether it’s navigating customs regulations, optimizing supply chains, or understanding international trade dynamics, we’ve got you covered with expert advice and valuable tips. Stay ahead of the competition and make informed decisions as you embark on your importing journey.

What is Australian import duty?

Import duty (tax) are charges levied by a country on goods imported from abroad. These fees are collected by customs authorities to regulate trade and protect domestic industries. Import tax is a broad term encompassing various tariffs, taxes, and fees imposed on imported items. Import duty, on the other hand, specifically refers to the tax imposed on imported goods, usually calculated as a percentage of their value. Both import tax and import duty serve as revenue sources for the government while also influencing consumer choices and trade patterns between nations.

What are customs duty on imports?

Customs duty on imports is a tariff imposed by a country on goods entering its borders from foreign nations. It is a form of tax collected by customs authorities to regulate international trade and safeguard domestic industries. The duty is usually calculated as a percentage of the item’s declared value, known as the “ad valorem” duty, or as a specific amount based on weight, quantity, or other measures. Customs duty aims to generate revenue for the government, protect local businesses, and control the flow of goods across national borders.

What is the Australian import tax limit?

Australia had an import tax limit of AUD 1,000. This means that goods imported into Australia with a declared value of less than AUD 1,000 were exempt from paying customs duty or import taxes. However, it’s important to note that import tax regulations can change over time, so we recommend checking with the Australian Customs and Border Protection Service or relevant authorities for the most current information on import tax limits in Australia.

How can I calculate import tax?

Calculating Australian import tax involves several steps and considerations including:

  1. Determine the HS code: Find the Harmonized System (HS) code for the item you want to import. The HS code is a standardized code used internationally to classify products.
  2. Check the Customs duty rate: Visit the Australian Border Force website or contact them to find the applicable customs duty rate for your specific HS code.
  3. Calculate customs duty: To calculate customs duty, multiply the customs duty rate by the item’s customs value. The customs value is typically the transaction value (purchase price) of the goods, including shipping and insurance costs.
  4. Consider Goods and Services Tax (GST): In most cases, you will also need to pay a 10% Goods and Services Tax (GST) on the customs value and any customs duty.
  5. Account for other charges: Additional charges, such as customs processing fees and security fees, may apply and should be factored into the total cost.
  6. Use a customs broker: For complex or high-value shipments, consider using a customs broker to handle the import process and ensure compliance with all regulations.

Always verify the current regulations and rates with the Australian Customs and Border Protection Service or relevant authorities to ensure accurate calculations and compliance.

Legal Advice

Our highly experienced solicitors at our sister company, Legal Kitz can provide you with advice that is tailored to your situation, ensuring that your concerns are addressed. You can also request to book a FREE consultation or contact them at or 1300 988 954. You can also check out our Business Kitz subscription service today to begin your business with a solid foundation that ensures legal compliance. 

We are currently onboarding our first 3,000 users to our new powerful AI-assisted software which will be live soon