GST on Exports to Australia

Big changes are coming for New Zealand firms who export low value goods to Australia.

From July 2018, New Zealand firms exporting to Australia will be required to charge 10% GST if their sales to consumers exceed AU$75,000 in any twelve month period.

At present, goods under AU$1,000 do not attract GST at all. Anything over AU$1,000 does attract GST, which is charged at the border and paid by the importer.

So whilst New Zealand exporters of high value products are likely to be unaffected, New Zealand exporters who sell low value items to Australian consumers may be caught up in the changes.

Businesses meeting the AU$75,000 registration threshold in any twelve month period will need to:

  • register for GST with the Australian Taxation Office (ATO).
  • charge GST on sales of low value imported goods (unless they are GST-free).
  • lodge returns with the ATO.

The consumer won’t pay any more tax when the goods arrive at the border.

If you don’t export AU$75,000 in products in a twelve month period then you will be unaffected.

For exporters selling products in excess of AU$1,000, GST would not be charged by the exporter. GST, customs duty and clearance charges will be charged to the importer at the border under existing processes.

For more information, and to watch a webinar on the new process, click on the link to the ATO site here.

There is a good general article in the New Zealand Herald which you can read here.

GST-free Supplies for Non-Residents

There are a number of products and services that do not attract GST when they are imported into Australia. GST-free is a term used by the ATO which is similar to the Inland Revenue Department’s zero rated terminology.

These goods and services include food and beverages, medical services, medical aids and appliances as well as educational courses and material. Of these, the most complex is food and beverages.

More information on GST-free supplies is available on the ATO website by clicking here.

This information is current at the date of publication but is subject to change.