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Selling goods into Australia

Your Australian tax obligations when importing goods into Australia with or without having a physical presence here.

Last updated 17 September 2020

This information is for entities that sell goods into Australia.

You should use this information whether or not:

  • you have a physical presence in Australia
  • you sell through an Australian agent
  • your country of residence has a tax treaty with Australia.

The government is continually reviewing international tax arrangements. Potential international legislative changes may affect you.

Find out about:

See also:

Selling goods without a physical presence in Australia

Treaty countries

This section applies to you if:

  • you are a resident entity of a country that has a tax treaty with Australia
  • you export goods to Australia without having a physical presence in Australia, such as an agent, subsidiary or permanent establishment, and
  • you don't employ staff in Australia.

Under these circumstances you will have the following tax obligations:

  • Income tax – You will not be liable to pay Australian income tax. Income tax only applies if you have an Australian permanent establishment.
  • Capital gains tax (CGT) – You will not be liable to pay CGT. CGT only applies to assets that are taxable Australian assets.
  • Goods and services tax (GST) – You may be liable for GST. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
  • Superannuation, PAYG withholding and fringe benefits tax (FBT) – As you don't have employees, you won't have any of these obligations.
  • Other tax obligations – If you are exporting goods to Australia by selling to an Australian resident entity on a free on board (FOB) basis, this may be considered an importation by the Australian entity. This means you may not have any Australian tax obligations – rather, your Australian customer will have tax obligations relating to the importation.

You will need to register for an Australian business number (ABN).

Non-treaty countries

This section applies to you if:

  • you are a resident entity of a country that does not have a tax treaty with Australia
  • you export goods to Australia without having a physical presence in Australia, such as an agent, subsidiary or permanent establishment
  • you don't employ staff in Australia.

Under these circumstances, you will have the following tax obligations:

  • Income tax – You may be liable to pay income tax. You need to work out the source of your income, as this will determine how you are taxed.
  • Goods and services tax (GST) – You may be liable for GST. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
  • Superannuation, PAYG withholding and fringe benefits tax (FBT) – As you don't have employees, you won't have any of these obligations.
  • Other tax obligations – If you are exporting goods to Australia by selling to an Australian resident entity on a FOB basis, this may be considered an importation by the Australian entity. This means you may not have Australian tax obligations – rather, your Australian customer will have tax obligations relating to the importation.

You will need to register for an Australian business number (ABN).

See also:

Selling goods through an Australian agent

Treaty countries

This section applies to you if:

  • you are a resident entity of a country that has a tax treaty with Australia, and
  • you export goods to Australia through an agent in Australia.

Under these circumstances, you will have the following tax obligations:

  • Income tax – If you have dependent agents in Australia that have authority to enter into contracts on your behalf and regularly exercise that authority, they may be regarded as your permanent establishment. This means your business profits will be subject to Australian income tax.
  • Capital gains tax (CGT) – If you have a permanent establishment in Australia, the assets you own as part of that establishment will generally be subject to CGT when you sell or otherwise dispose of those assets.
  • Goods and services tax (GST) – If you make sales, purchases or importations through a resident agent, the agent may have GST obligations. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
  • Superannuation and PAYG withholding –- If you employ a full-time, part-time or casual worker, or a contractor wholly or principally for labour as your agent in Australia, you may have Australian superannuation obligations or PAYG withholding obligations.
  • Fringe benefits tax (FBT) – If you employ a full-time, part-time or casual worker as your agent in Australia and you provide benefits to them or their associate (typically family members) in place of, or in addition to, salary or wages, you may have fringe benefits tax (FBT) obligations.

You will need to register for an Australian business number (ABN).

Non-treaty countries

This section applies to you if:

  • you are a resident entity of a country that does not have a tax treaty with Australia, and
  • you export goods to Australia through an agent in Australia.

Under these circumstances, you will have the following tax obligations:

  • Income tax – You may be liable to pay income tax. You need to work out the source of your income, as this will determine how you are taxed.
  • Goods and services tax (GST) – If you make sales, purchase or importations through a resident agent, the agent may have GST obligations. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
  • Other tax obligations – If you are exporting goods to Australia by selling to an Australian resident entity on a free on board (FOB) basis, this may be considered an importation by the Australian entity. This means you may not have Australian tax obligations – rather, your Australian customer will have tax obligations relating to the importation.

You will need to register for an Australian business number (ABN).

See also:

Selling goods through a permanent establishment in Australia

Treaty countries

This section applies to you if:

  • you are a resident entity of a country that has a tax treaty with Australia
  • you export goods to Australia through a permanent establishment in Australia, and
  • you employ staff in Australia.

Under these circumstances, you will have the following tax obligations:

  • Income tax – Your business profits, attributed to your Australian permanent establishment, will be subject to Australian income tax.
  • Capital gains tax (CGT) – You will be subject to Australian CGT if you sell or dispose of assets that are taxable Australian assets.
  • Goods and services tax (GST) – You may be liable for GST. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
  • Superannuation and PAYG withholding – If you employ a full-time, part-time or casual worker, you are likely to have Australian superannuation obligations and PAYG withholding obligations.
  • Fringe benefits tax (FBT) – If you employ a full-time, part-time or casual worker and you provide benefits to them or their associate (typically family members) in place of, or in addition to, salary or wages, you may have fringe benefits tax (FBT) obligations.

You will need to register for an Australian business number (ABN).

Non-treaty countries

This section applies to you if:

  • you are a resident entity of a country that does not have a tax treaty with Australia
  • you export goods to Australia through a permanent establishment in Australia
  • you employ staff in Australia.

Under these circumstances, you will have the following tax obligations:

  • Income tax – You may be liable to pay income tax. You need to work out the source of your income, as this will determine how you are taxed.
  • Capital gains tax (CGT) – You will be subject to Australian CGT if you sell or dispose of assets that are taxable Australian assets.
  • Goods and services tax (GST) – You may be liable for GST. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
  • Superannuation and PAYG withholding – If you employ a full-time, part-time or casual worker, you are likely to have Australian superannuation obligations and PAYG withholding obligations.
  • Fringe benefits tax (FBT) – If you employ a full-time, part-time or casual worker and you provide benefits to them or their associate (typically family members) in place of, or in addition to, salary or wages, you may have fringe benefits tax (FBT) obligations.
  • Other tax obligations – If you are exporting goods to Australia by selling to an Australian resident entity on a free on board (FOB) basis, this may be considered an importation by the Australian entity. This means you may not have Australian tax obligations – rather, your Australian customer will have tax obligations relating to the importation.

You will need to register for an Australian business number (ABN).

See also:

Operating a subsidiary

If you operate a subsidiary in Australia different arrangements may apply.

A subsidiary that is incorporated in Australia is treated as an Australian resident for Australian tax purposes.

The subsidiary is generally taxed in Australia on its worldwide income and its worldwide capital gains, subject to a number of exemptions.

Generally, an Australian resident subsidiary is not considered to be a permanent establishment of its parent company.

See also:

QC18431