On 1 July 2000 the Australian Government will be implementing the GST which levies a tax of 10% on all goods and services provided in Australia, the exemption to this are certain foods and goods that are exported from Australia.

The effect on Australian Importers is that assessment of GST will be made at the same time that the Customs entry is made and with payment being made at the time the Customs Entry is paid.

Should goods be purchased on a LIS or FIS (free into store) basis then there could be an issue in relation to GST paid by the supplier at the time of importation as this is not recoverable by the purchaser unless the supplier is registered.

Other areas of concern are capital equipment purchased on an installed basis where issues such as the supplier purchasing local supplies such as crane hire, hotel accommodation, airfares, external labour, all of which will be subject to GST but not refundable to the final purchaser.

When quoting on exports to Australia or purchasing equipment bound for Australia please contact us via E-mail to discuss these issues.