When importing goods into Australia, it’s essential to understand the various taxes and duties that apply. Below is a summary of the key rates you need to be aware of.
| Tax/Duty Type | Rate |
|---|---|
| Goods and Services Tax (GST) | 10% of the value of the taxable importation. |
| Customs Duty | Generally 5% on the Free on Board (FOB) value of most general cargo. |
| Luxury Car Tax (LCT) | 33% on the value exceeding the threshold of $69,152 for luxury cars. |
| Wine Equalisation Tax (WET) | 29% of the wholesale value of wine, included in the final retail price. |
Key Points to Note
- GST applies to most imported goods at a flat rate of 10%.
- Customs Duty is typically 5% but may vary depending on the type of goods.
- LCT is a specific tax applied only to luxury cars, calculated on the amount exceeding a certain threshold.
- WET is a unique tax applied to wine based on its wholesale value.
Understanding these rates will help you better calculate the total cost of your imports into Australia.
Import Duty Rates on Alcohol and Other Beverages in Australia
The import duty (excise duty) for alcohol and other beverages in Australia is calculated using specific formulas based on the product type, volume, alcoholic strength, and the current excise duty rate. Below are the details:
1. Beer
- Formula:
Excise Duty = Total Volume (litres) * (Alcohol Strength – 1.15%) * Current Duty Rate - Example Calculation:
For a beer classified under sub-item 1.10, with a duty rate of $57.79 per litre of alcohol (LAL) as of February 2023: - 10 cases, each containing 24 bottles of 355 ml (total volume = 85.2 litres).
- Alcohol strength = 5%.
- 85.2 * (5% – 1.15%) = 3.28 LALs (round up to 3.2 LALs)
- Duty = 3.2 LALs * $57.79 = $184.92.
2. Spirits and Other Excisable Beverages
- Formula:
Excise Duty = Total Volume (litres) * Alcohol Strength * Current Duty Rate - Example Calculation:
For gin classified under sub-item 3.2, with a duty rate of $97.90 per litre of alcohol (LAL) as of February 2023: - 100 cartons, each containing 12 bottles of 700 ml (total volume = 840 litres).
- Alcohol strength = 37.2%.
- 840 * 37.2% = 312.48 LALs (truncated to 312.4 LALs)
- Duty = 312.4 LALs * $97.90 = $30,583.96 .
3. Beer Brewed at Brew on Premises Shops (BOPS)
- Excise duty for beer brewed at BOPS is calculated for each batch (fermenter) and is lower than that for commercially brewed beer.
- Duty varies based on the beer’s strength.
Key Notes:
- Duty rates are subject to change. Always check the latest excise duty rates under the Excise Tariff Act 1921.
- Measurements are rounded to two decimal places, except for the excise return where they are truncated to one decimal place.