Are overseas purchases going up now by 10% for everything in July?

[swinks]

thanks for the example 

[Strangeways]

Still confusing and deliberately unclear.
Sounds to me like the Government want to make up for the millions in Tax lost during the mining boom.

This is going to be one huge mess on July 1st..

[swinks]

here is a gst and duty calculator as a rough guide

https://www.wwcf.com.au/customs-duty-import-goods-and-service-tax-calculator/

[Retropin]

Here's an example of how this will work.
A few years back I imported some goods for my business and kept the value of the goods under the $1000 threshold.
But, at time of arrival in Australia, the dollar had dropped and the value of the goods came to something like $1015. I then get a call from DHL ( the carriers) who tell me that the goods cannot come into Australia unless I pay the GST and import tax... do you want us to do this for you or do you want to deal with customs yourself?
Anyone who has ever tried to deal with customs knows that all the cards are stacked against you.. they will have you going in ever increasing circles of red tape, all the while, your goods are sitting in storage at customs which attracts a $170 daily fee.
So.. I agreed to have DHL pay the tax and I reimburse with my credit card. DHL then add on an administration fee and my bill to DHL came in at just under $400..

.. all this for $15

If you think that Aus Post..DHL...TNT etc are going to ask you simply for the 10%..think again as its a total money rort for these guys

[Strangeways]

Spoke to Aussie Post today regarding the GST implications, and they have not been provided with any such notification from the ATO or Aussie Post Head Office.

[oldskool1969]

.. all this for $15

I too got toasted bad with  a similar scenario.

[Crashramp]

Spoke to Aussie Post today regarding the GST implications, and they have not been provided with any such notification from the ATO or Aussie Post Head Office.

Sounds like we can all look forward to a complete cluster f*** come July 1st.

[Strangeways]

I have a better understanding of the process. I'm just awaiting confirmation from Border Protection (Customs).


First of all, I don't know how it will effect a consumer who buys goods from overseas from and online store "completely". If that O/S store is registered for GST, it will be built into the price and you will pay for the GST for that item. The ATO collects the GST from the supplier and your goods will be marked as "GST paid" before it hits our shores. THEN - you need the item cleared. That's the part I'm unsure of.


If that store has not registered for GST, the item sits in Customs and the consumer has to pay GST + Clearance - through a Declaration form and then it may need a Freight Forwarder to provide clearance. A really BIG mess. If you are thinking of abandoning the goods, you will be sent a letter from Border Protection to pay storage and shipping charges back to the country of origin.


For RTBB - We provide our ABN to Border Protection, and we pay GST upon entry to Australia. We clear the items (still waiting on an exact procedure) and then we onsell to the consumer +GST. I'm waiting on Border Protection to provide me with the exact procedure. It may be all done online as we are classed as an "importer of goods" and not a "consumer".

Clear as mud ?

[pinnies4me]

GST is a monster. I am now required to collect the GST that would be paid to a developer on behalf of any purchaser client and pay that directly to the ATO, and if I miss it, I get to pay it (we are talking tens of thousands of dollars!!). All because a few developers over the years failed to remit the GST on their development sales. Sledgehammer used to fix a minor problem.

[Strangeways]

After waiting days for Border Protection to provide a process for GST collection for importers - they gave me a link to the ATO website. So when you ask the ATO how its done, they give you the link to the Border Protection site.
The only way is from what I've gathered ;
If you have paid for your import prior to 1st July, even AFTER your shipment arrives, it will be cleared - Fedex and USPS as examples.
If you have paid after 1st July, your goose is cooked. You will be required to pay GST AND DUTY 5% of the total shipment. You MAY have pay admin and clearance fees.

If your purchase is from eBay - non Aussie - the GST component is already added in checkout. If the shipper is eBay Global, your package will be cleared as per normal as you have paid GST. No Duty is calculated - from what I can work out.
If you are buying or selling from Forums and Facebooks groups, you will be targeted. Whatever that means - by the ATO.
RTBB / APR is now registered for GST - so we can claim GST credits etc etc.

[Retropin]

Well ive just had first hand experience of this having had a phone call yesterday to pay the fees.
I normally try to keep my purchases under $1000 to avoid the GST and import tax ( extra 5%) but I figure that seeing as everything is now subject to GST, you might as well buy bigger to avoid multiple purchases.
So my normal AU$800 turned into over AU$2000.
Yesterday I received a text message and then a phone call from the carriers FedEx NSW.
Taxes are to be paid PRIOR to entry to the country and customs approval and it appears to be subject to a AU$20 admin fee..other carriers may charge more or less.
But, if you import from a non GST registered overseas company, then expect a phone call at any time and have the money ready on your credit card.
A $20 fee on a $10 item is painful... $20 on a $2000 purchase, I can live with.

[Strangeways]

Interesting as from what I can gather, the existing method of paying GST for items over AUS$1000 remains unchanged. Using that method, you need to fill out declaration forms or have a Freight Forwarder fill out the clearance forms (costing a fair amount of $).
Might have to try an order over $1000 and see what happens.