GST on Imports to Australia From China: How It Works
When you import goods from China into Australia you may pay GST, customs duty or both. This guide explains how each one is worked out, when the A$1,000 threshold applies and how to estimate your real landed cost before you order.
The short answer
Most goods imported into Australia carry 10% GST. Many goods also carry customs duty, commonly 5% for products such as clothing and a range of consumer goods, and some goods are duty free. Duty is generally not charged on goods valued at A$1,000 or less, and for low value consignments GST is often collected by the seller or platform at checkout instead of at the border.
How GST on imports is calculated
GST is charged on the value of the taxable importation, not just the price of the goods. In simple terms it is:
- The customs value of the goods (usually the price you paid, on an FOB basis)
- Plus customs duty, if any
- Plus international freight and insurance to Australia
- Plus certain other costs such as wharfage
Then 10% GST is applied to that total. This is why a cheap product can still produce a bigger GST bill than expected once shipping is added.
Customs duty: when do you pay it?
Duty depends on the tariff classification of your product and where it was made. Many consumer goods are 5% or free. Because China and Australia have a free trade agreement (ChAFTA), many Chinese-origin goods qualify for reduced or zero duty if you hold the right proof of origin. Ask your supplier for it before shipping.
Duty is generally not payable when the consignment value is A$1,000 or less. Above that, a formal import declaration is needed and duty and GST are assessed on it.
Worked example
| Item | Amount (A$) |
|---|---|
| Goods (FOB) | 10,000 |
| Customs duty at 5% | 500 |
| International freight and insurance | 1,500 |
| Value for GST (10,000 + 500 + 1,500) | 12,000 |
| GST at 10% | 1,200 |
If you are GST registered you can usually claim the GST paid on imports back in your next BAS, so it affects cash flow more than final cost. Speak to your accountant.
What you need to import commercial goods
- An ABN (and GST registration if you are above the threshold or want to claim credits)
- A customs broker or your own ICS access to lodge the import declaration
- Commercial invoice, packing list and bill of lading or airway bill
- Proof of origin if you want to claim ChAFTA rates
- Biosecurity compliance for timber, plant, food and some other goods
Other costs that catch importers out
- Port and terminal handling charges
- Customs broker and declaration fees
- Biosecurity inspection or treatment (for example wooden pallets that do not meet ISPM 15)
- Delivery from the port to your door
Plan your landed cost before you order
Ask your forwarder for a door-to-door quote that separates freight, local charges, duty and GST. Our sea freight to Australia and air freight to Australia services include this breakdown. If you also need a supplier, see our China sourcing agent service, and read how long shipping from China to Australia takes.
Frequently Asked Questions
What is the GST rate on imports to Australia?
10% in most cases, charged on the value of the taxable importation, which includes the goods, any duty and international freight and insurance.
Do I pay GST on goods under A$1,000?
GST still applies, but for low value consignments it is often collected by the seller or platform at checkout rather than at the border. For commercial imports ask your broker how it applies to you.
How much import duty will I pay in Australia?
It depends on the product. Many consumer goods are 5% or free, and duty is generally not charged on consignments valued at A$1,000 or less. Chinese-origin goods may qualify for lower rates under ChAFTA.
Can I claim back GST paid on imports?
If you are registered for GST and the goods are for your business, you can usually claim the GST as a credit in your BAS. Confirm with your accountant.
Do I need a customs broker to import into Australia?
For commercial shipments above A$1,000 most importers use a licensed customs broker, often arranged by their freight forwarder, because the import declaration is lodged electronically.
What is ChAFTA?
The China-Australia Free Trade Agreement. It lowers or removes duty on many goods made in China if you can provide valid proof of origin.
Related guides
This guide is general information, not legal, tax or customs advice. Rules, rates and transit times change, so confirm the details for your goods with a licensed customs broker or the relevant authority before you ship.