How does Australia tax imported goods?

carina097

Hi everyone!

I've recently joined SaleHoo and think I have found my niche product which I can source from China via DHgate. I've also found an Aussie supplier whose products i will give a try.

Firstly, im a bit confused about declaring imported goods. A search on customs website gave me this info

- Imported goods valued at or below A$1000* that arrive in

Australia by sea or air cargo must be declared to the Australian

Customs and Border Protection Service (Customs and Border

Protection) on a self-assessed clearance (SAC) declaration.

SAC declarations are not required for the clearance of goods

with a value at or below A$1000 that arrive by international mail

(post).

My items are under $1000 and will be sent via FedEx. Is that classed as international air mail or air cargo?

Also, at which point do i need to declare my profits as an income in my tax return, or apply for an ABN?

Thanks in advance

richelle_salehoo1

Hi carina097,

According to one of our members -

Hi everyone!
We have been importing from Spain, China, and US. As long as dollar value is under $1000 AU there is no import or tax. We have several boxes delivered each month. Overall, more costly than a container but then again don't have to put out $10,000 to fill a container.
Australian customs site shows the duty for different items.
We shipped a container 4 months ago and found that Clothing is usually most expensive (upwards of 15%!) Our electric goods were 5% and another product was 0% . If you can't find what you are looking for they have been very helpful to us over the phone.
Go for it!!

Here's the link to his post - Link hidden: Login to view

I'm not too sure about how you would classify FedEx deliveries though.

As for when you should register your business and declare your income, I know that there is a threshold to be met. Like for GST, you should register for GST when you have sales running up to $75k annually. Getting an ABN on the other hand may do you more good than bad, since your supplier choices will expand greatly.

As we are not professionally trained, I would say it would still be best that you seek the help of a local accountant :)

Also, you might find these guides helpful -

Link hidden: Login to view

to-australia

Link hidden: Login to view

Hope this helps a bit! All the best :)

importexportcoach

Hi everyone!
I've recently joined salehoo and think i have found my niche product which i can source from china via DHgate. I've also found an aussie supplier whose products i will give a try.
Firstly, im a bit confused about declaring imported goods. A search on customs website gave me this info
- Imported goods valued at or below A$1000* that arrive in
Australia by sea or air cargo must be declared to the Australian
Customs and Border Protection Service (Customs and Border
Protection) on a self-assessed clearance (SAC) declaration.
SAC declarations are not required for the clearance of goods
with a value at or below A$1000 that arrive by international mail
(post).
My items are under $1000 and will be sent via FedEx. Is that classed as international air mail or air cargo??
Also, at which point do i need to declare my profits as an income in my tax return, or apply for an ABN?
Thanks in advance

Hi,

A few points you raised here.

Yes you should register for an ABN ( every business needs one) it's free to do and takes around 15 minutes online either call the ATO or visit their website. You only need to resist for GST if your turnover is over a certain threshold I believe it's 75k this year, don't hold me to this though.

If you register for gst you can also claim that back if you ever pay GST on your imports in the future, yes you will have to pay tax on everything you earn provided its a business you are running if this is just a one off import then it may be classified as a hobby or something else and won't be taxable.

Hopefully this points you in the right direction.

Alex C Ryan

Managing Director

Import Export Exposed

startimportingnow.com.au

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