Landed-Cost Planning & Tariff Optimisation
Pre-import margin modelling, statutory duty reduction, and cash-flow preservation for Australian commercial importers.
Decoding the Australian Value of Taxable Importation (VoTI)
The GST treatment of imports is set out in the A New Tax System (Goods and Services Tax) Act 1999. The working formulas are:
- Customs value (CV, FOB) = purchase price in AUD at the origin port
- Customs duty = customs value × duty rate (5% general rate for many goods; rates vary by tariff classification)
- VoTI = customs value + customs duty + international transport and insurance (T&I)
- Import GST = VoTI × 10%
Miscalculating T&I or the exchange rate is the most common cause of unexpected tax bills on arrival. Both change the VoTI, and the GST is charged on the VoTI, not on the supplier invoice alone. For a line-by-line statutory breakdown and worked calculation, consult our Australian Import Duty & GST Guide.
MyImpex is an independent financial and trade compliance advisor. We provide pre-shipment financial visibility, tariff concession strategies, and cash-flow deferral options before capital is committed to overseas suppliers.
Tariff Concession Orders (TCO) & Free Trade Agreement Exemption
Tariff Concession Orders
A Tariff Concession Order can give a concessional rate, often 0% duty, on goods where no substantially equivalent goods are made in Australia. Each order is assessed case by case by the Australian Border Force (ABF). Processing typically takes 12 to 16 weeks (including the statutory 50-day gazettal objection window). A TCO cannot be applied retroactively to goods imported before the date of lodgement, so confirm the outcome before relying on it.
Free Trade Agreement preferential rates
Agreements such as the China-Australia FTA (ChAFTA) and AUSFTA can give preferential 0% rates where the goods meet the agreement rules of origin. Each agreement has its own documentation requirements, and the importer must be able to show the origin claim if asked.
The Deferred GST Scheme (DGST) Advantage
The Deferred GST Scheme lets eligible businesses registered for GST defer the import GST and account for it on their Business Activity Statement (BAS), rather than paying it in cash at the port. The benefit is timing: the GST is still owed, but it is paid later. To participate, you must report BAS monthly. Importers currently reporting quarterly must move to monthly reporting, which takes effect from the start of the subsequent quarter.
Working capital example: $100,000 shipment
Customs value $100,000. Customs duty at 5% is $5,000. VoTI is $105,000 (before freight and insurance, for simplicity). Import GST at 10% is $10,500.
Under the scheme, the $10,500 is deferred to the BAS instead of being paid at the port, which keeps that cash in operations for the BAS period. Freight and insurance would increase the VoTI and the GST figure.
Calculate Your Real Landed Cost Before Ordering Stock
Don’t guess your margins. Let our senior trade advisors audit your product classification, FTA eligibility, and import tax liability before you pay your overseas supplier.
Frequently Asked Questions
Import GST is 10% of the value of taxable importation (VoTI). VoTI includes the customs value, customs duty and international transport and insurance costs, so GST is calculated on more than the supplier invoice. Your customs broker or advisor can confirm the figures for each entry.
A Tariff Concession Order gives a concessional duty rate, often 0%, where no substantially equivalent goods are made in Australia. Applications are decided by the Australian Border Force (ABF) and are assessed case by case. Approval is not guaranteed, so do not plan around it until it is granted. Processing typically takes 12 to 16 weeks (including the statutory 50-day gazettal objection window), and a TCO cannot be applied retroactively to goods imported before the date of lodgement.
Eligible businesses registered for GST can defer the import GST and account for it on their next Business Activity Statement, rather than paying it in cash at the port. This improves cash flow by the timing gap. It does not reduce the GST owed, and the scheme has eligibility conditions, Participants must report BAS monthly. Importers currently reporting quarterly must move to monthly reporting from the start of the subsequent quarter. Confirm them with your accountant before relying on it.
Each agreement has its own origin rules. Generally, the exporter or producer provides an origin declaration or certificate of origin, and the importer holds the supporting records, such as production and supplier documentation, and produces them on request. Requirements differ by agreement, so check the rules for each product before shipping.
Legal & Brokerage Notice: MyImpex provides independent trade consulting and supply chain management. Customs declarations are lodged throughaccredited Australian Licensed Customs Brokers. Tax and GST deferral information is for commercial guidance only and does not replace advice from a registered tax agent.