Australia applies a Goods and Services Tax (GST) of 10% to most goods and services. For goods imported into Australia, how GST is collected depends on the value of your shipment.
How GST works on imports
Under Australian law (in effect since July 1, 2018), "re-deliverers" like forward2me must collect GST on low-value goods imported into Australia. In practice:
- Shipments valued at AUD $1,000 or less: forward2me collects GST and pays it to the Australian Taxation Office (ATO). forward2me handles the registering and collecting; the buyer pays the GST.
- Shipments valued over AUD $1,000: forward2me doesn't collect GST. Instead, it's assessed and collected at the border by Australian Customs, and the buyer pays it there.
The value threshold applies to the whole shipment, not just single items. If several items are grouped into one order and the combined value is AUD $1,000 or less, GST is collected on that total.
Alcohol and tobacco
Alcohol and tobacco products are treated differently and are taxed at the border regardless of their value.
What's exempt from GST
Some goods are exempt from Australian GST. Those relevant to imports include:
- Most basic food items
- Some menstrual products
- Some medical equipment and medicines
- Precious metals
- Some telecommunications items
Australian external territories
Christmas Island, the Cocos (Keeling) Islands, and Norfolk Island are Australian external territories and aren't considered part of Australia for GST purposes.
If you have further questions, please contact our Customer Experience team.