For brands expanding into Australia, understanding the country’s tax system is an important part of building a smooth cross-border strategy. Australia has clear rules around goods and services tax, or GST, import thresholds, registration requirements, and customs clearance.
The good news is that once you understand the basics, Australia can be a straightforward market to plan for. Here are the key tax considerations ecommerce brands should know before selling into Australia.
1. Australia has a 10% GST
Australia applies a 10% Goods and Services Tax, commonly called GST, to many goods and services sold or consumed in Australia. For ecommerce brands, GST may apply to sales made to Australian customers and to certain imported goods. GST is calculated based on CIF (cost, insurance, freight) value. This means the 10% tax is applied to the product price plus shipping cost and any duty or insurance.
2. Australia has a low-value goods threshold of A$1,000
Australia uses an A$1,000 threshold for low-value imported goods. Goods with a customs value of A$1,000 or less are generally treated differently from higher-value consignments at the border.
However, this does not always mean GST is irrelevant. If a non-resident seller meets Australia’s GST registration requirements, they may need to charge and collect GST at checkout on eligible low-value goods sold to Australian consumers. Shipments over A$1,000 require a formal import clearance and are assessed a clearance fee in addition to duties and GST.
3. Shipments over A$1,000 require formal import clearance
Shipments with a customs value over A$1,000 generally require a formal import declaration. These shipments may be assessed for customs duty, GST, and applicable clearance charges before they are released. The Australian Border Force explains that import declarations are used to clear imported goods from customs control into Australia.
4. Non-resident brands may need to register for GST
Non-resident businesses that sell into Australia may need to register for GST once they meet the applicable registration threshold. For many businesses, that threshold is A$75,000 in GST turnover. Non-resident brands that sell more than A$75,000 in a calendar year are required to register for an Australian tax ID and collect 10% GST at checkout.
For ecommerce brands, this means Australian sales volume should be monitored closely. Once the threshold is crossed, the brand may need to register, collect GST, and remit it to the Australian Taxation Office.
5. There are two GST registration options for non-resident businesses
Non-resident businesses generally have two registration pathways: simplified GST registration or full Australian Business Number, or ABN, registration.
Simplified GST registration is typically faster and may be sufficient for many direct-to-consumer brands.
6. Registered brands must collect GST and file returns
Once registered for Australian GST, brands are generally responsible for collecting the 10% GST at checkout where required and filing GST returns with the Australian Taxation Office.
For many non-resident ecommerce brands, this means building GST collection into the customer checkout experience and maintaining the reporting needed for ongoing compliance.
7. The ATO may enforce GST obligations for overseas retailers
The Australian Taxation Office has enforced GST obligations for non-resident businesses selling into Australia. Brands that exceed the GST registration threshold should not assume they can wait indefinitely before registering.
If your Australian sales are growing, it is worth reviewing your GST position early so you can avoid reactive compliance work later.
8. Brands that cross the threshold have compliance options
If your brand has crossed the A$75,000 threshold, you can work toward compliance by registering for Australian GST or by participating in Passport’s Seller of Record, or SOR, program.
The right option depends on your operating model, Australian sales volume, internal resources, and preferred approach to tax and compliance management.
9. Australian tax planning should be part of your market-entry strategy
For ecommerce brands, Australian tax compliance is not just a finance consideration. It affects pricing, checkout, landed cost, customer experience, customs clearance, and long-term market planning.
By understanding GST, import thresholds, registration requirements, and compliance options early, brands can enter the Australian market with more confidence and fewer surprises.
10. How Passport Can Help
Passport charges a small administrative fee calculated as 5% of taxes collected for utilizing the SOR solution. For example, on a $100 order, Passport would collect $10 in GST and charge a $0.50 fee to manage collection, reporting, and compliance.
Here at Passport, we understand the intricacies that come with international shipping, especially regarding import tax regulations.
Our SOR program is designed to give e-commerce brands a simpler way to handle AU compliance with a quick and seamless enrollment process. If you’re interested in Passport’s Seller of Record solution, please reach out to our team at vat@passportglobal.com.
Frequently Asked Questions
Does Australia charge GST on ecommerce orders?
Yes. Australia has a 10% Goods and Services Tax, or GST, that generally applies to many goods and services sold or consumed in Australia. For ecommerce brands, GST may apply to sales made to Australian customers and to certain imported goods.
What is Australia’s low-value goods threshold?
Australia’s low-value goods threshold is A$1,000. Goods with a customs value of A$1,000 or less are generally treated differently from higher-value shipments at the border.
However, eligible low-value goods may still be subject to GST at checkout if the seller is required to register for Australian GST.
Do shipments under A$1,000 clear free of GST?
Not always. Shipments under A$1,000 are generally not assessed for GST at the border in the same way as higher-value imports. However, if a non-resident ecommerce brand meets Australia’s GST registration requirements, the brand may need to collect 10% GST at checkout on eligible low-value goods sold to Australian customers.
What happens when a shipment is over A$1,000?
Shipments with a customs value over A$1,000 generally require a formal import declaration. These shipments may be assessed for customs duty, GST, and applicable clearance charges before they are released.
When does a non-resident brand need to register for GST in Australia?
Non-resident businesses may need to register for Australian GST once they meet the applicable registration threshold. For many businesses, that threshold is A$75,000 in Australian GST turnover.
What is simplified GST registration?
Simplified GST registration is a registration option available to certain non-resident businesses. It is generally faster and less involved than full Australian Business Number, or ABN, registration. For many direct-to-consumer ecommerce brands, simplified registration may be sufficient.
What is the difference between simplified GST registration and ABN registration?
Simplified GST registration is usually a lighter registration pathway for non-resident businesses that need to collect and remit GST. Full ABN registration is more extensive and may be better suited for businesses with more complex Australian tax needs.
Once registered, what does a brand need to do?
Once registered for Australian GST, a brand generally needs to collect the 10% GST at checkout where required and file GST returns with the Australian Taxation Office.
What should brands do if they are approaching the A$75,000 threshold?
Brands approaching the A$75,000 threshold should review their Australian sales, understand their GST obligations, and decide whether to register for GST directly or use another compliance option, such as Passport’s Seller of Record program.
Can Passport help with Australian GST compliance?
Yes. Passport can help ecommerce brands understand their Australian GST obligations, evaluate compliance options, and determine whether GST registration or Passport’s Seller of Record program is the right fit for their business.
