π Complete Guide to Importing Goods to Australia
This guide covers the essentials for small businesses and individuals importing goods into Australia for resale.
1. Understanding Import Costs
The landed cost of imported goods includes much more than the purchase price. Here's every cost you need to account for:
| Cost Component | Typical Range | Notes |
|---|---|---|
| FOB Price | Varies | Factory gate price, excluding freight |
| International Freight | $2-30/kg | Depends on method (sea vs air) |
| Insurance | 1-2% | Of goods value |
| Customs Duty | 0-5% | Based on HS code classification |
| GST | 10% | On (value + duty + freight) |
| Customs Clearance | $50-150 | Broker fee per consignment |
| Quarantine (AQIS) | $0-200+ | If goods require inspection |
| Local Delivery | $8-20+ | From port/depot to your location |
2. GST on Imports
Australia charges 10% GST on most imported goods. The GST is calculated on the customs value + duty + freight.
- Low Value Threshold: Since 1 July 2018, GST applies to all goods imported into Australia regardless of value (the old $1000 threshold was removed for goods purchased from overseas suppliers registered for GST).
- Business importers: If you're GST-registered, you can claim back import GST as an input tax credit on your BAS.
3. Customs Duty Rates
Most goods attract either 0% or 5% duty. Some key rules:
- Free Trade Agreements (FTA): Goods from China (ChAFTA), Japan, Korea, ASEAN countries, and many others may have reduced or zero duty under FTA preferences.
- Rules of Origin: To claim FTA rates, you need a Certificate of Origin from the supplier.
- Electronics: Most electronics (phones, laptops, tablets) are duty-free.
- Clothing & textiles: Generally 5% duty.
4. Prohibited & Restricted Goods
β οΈ Some goods are prohibited or require permits. Importing without proper documentation can result in seizure and fines.
- Biosecurity: Food, plant material, animal products may require AQIS inspection and permits
- Safety standards: Electrical goods must meet Australian safety standards (SAA approval)
- Therapeutic goods: Medicines and supplements may need TGA approval
- Weapons & replicas: Strictly controlled
5. Step-by-Step Import Process
- Source your product β negotiate FOB price with supplier
- Arrange freight β choose sea or air based on urgency and weight
- Get insurance β protect against loss/damage in transit
- Customs declaration β lodge an Import Declaration (N10) or use a customs broker
- Pay duty + GST β before goods are released
- Quarantine check β if applicable (food, wood, animal products)
- Collect goods β arrange pickup from port/depot or delivery
6. Tips for First-Time Importers
- Start small: Test with a small order before committing to bulk
- Use a customs broker: Worth the $50-150 fee to avoid costly mistakes
- Factor ALL costs: Use our calculator to avoid nasty surprises
- Check FTA eligibility: Could save you 5% on duty
- Register for GST: If turnover > $75k, you must register β and you can claim back import GST
- Keep records: ATO requires you to keep import records for 5 years