Australia’s GST is a broad-based tax of 10% that’s applied to all goods and services that are sold within Australia. It’s very similar to the UK’s value added tax (VAT) in that the money made from the tax is then used to pay for public services and infrastructure.
Businesses are responsible for collecting the goods and service taxes for the government when they sell their products and services, then they pay that to the Australian Tax Office in turn. GST is generally incorporated into the price of the items or services that businesses provide.
The Australian Government introduced new laws that came into effect on 1 July 2018 that require what they call re-deliverers to collect Goods and Services Tax (GST) on low-value goods imported to Australia. This means we are obliged to collect GST on goods with a value of AUD $1,000 or less. The GST we collect is paid to the Australian Tax Office (ATO).
Goods with a value greater than AUD $1,000 will be taxed at the border by Australian Customs as they have always been in the past. In this instance we do not collect any GST on the value of the goods.
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