Oceania · Buyer Guide· Tosome Logis Guide Team~5 min read
Bought Something From Korea? GST Still Applies, Even Under AUD 1,000
Even if your order from a Korean seller is worth less than AUD 1,000, Australia still charges 10% GST on it — the common belief that "under AUD 1,000 is tax-free" is not accurate. What's actually waived below that threshold is customs duty and the requirement for a formal import declaration, not GST itself.
🕒 Last updated: August 31, 2026
Why people think it's tax-free — and why it isn't
Since July 1, 2018, Australia's Low Value Imported Goods GST regime has required overseas sellers whose annual sales into Australia exceed AUD 75,000 to register for GST[1]. Registered sellers collect 10% GST at the point of sale — when you pay for the item — rather than at the border. So the tax hasn't disappeared; it's just being collected earlier, at checkout instead of at customs. If you didn't notice GST on your receipt, check whether it was already folded into the displayed price.
Timeline
Date
What happened
Jul 1, 2018
Low Value Imported Goods GST regime begins — overseas sellers earning over AUD 75,000/year from Australia must register and collect GST
Now (as of Aug 2026)
Same regime in force; AUD 1,000 remains the line between simplified and formal import treatment
GST above AUD 1,000 is calculated as (customs value + duty + freight/insurance) × 10%[2]. For example, an AUD 2,000 item with AUD 200 freight and a 5% duty rate: duty = AUD 100, GST = (2,000+100+200) × 10% = AUD 230.
Don't take "under AUD 1,000, no tax" at face value
⚠️ GST applies either way — the only real question is whether it was already collected at checkout or will be collected when the parcel arrives. If you shop repeatedly from a Korean seller and never see GST registration mentioned, it's worth asking whether they're an ATO-registered seller (required once they cross AUD 75,000/year in Australian sales) — unregistered sellers can leave you with an unexpected GST bill at the border. Alcohol and tobacco always carry extra duty and excise (WET, LCT, etc.) regardless of value.
If you're ordering something over AUD 1,000
✅ Once your order passes AUD 1,000, expect a formal import declaration and an Import Processing Charge on top of duty and GST — factor that into the total cost before you buy. Make sure the declared customs value (item price + freight + insurance) is accurate, since GST is calculated from that combined figure, not just the item price.
How Tosome Logis Can Help — Sellers and Buyers
How Tosome Logis helps
🇦🇺Customs-value calculation and Import Processing Charge guidance
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⚠️ Note: duty rates (0-5%) vary by product and are described only in general terms here. Check the Australian Border Force's current rate schedules for exact duty and IPC figures before relying on this for a specific shipment.
Frequently Asked Questions
No. GST (10%) applies to every online purchase from overseas, regardless of value. What's exempt under AUD 1,000 is customs duty and formal import declarations, not GST.
Customs duty (0-5%) is added, formal customs declaration becomes required, and an Import Processing Charge (AUD 50-200+) applies on top.
If the Korean seller sells more than AUD 75,000 a year into Australia, they're required to register with the ATO and collect the 10% GST directly at the point of sale, rather than it being collected at the border.
References & Sources
[1] AUSFF, "GST Import Australia: Your 2026 Guide to Taxes & Duties" — www.ausff.com.au
[2] iSend, "Import Tax Australia 2026: Rates, GST & the $1,000 Free Limit" — isend.com.au
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