Exporting to Australia

Taxes, duty and legal considerations when exporting to Australia

Guide

There are a lot of things to consider before you start exporting to Australia. It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

You can zero-rate the sale of goods exported to Australia. You must get evidence that the goods were exported and keep it as part of your records. There’s also a 10% tax on the sale of most goods and services.

Find more information on VAT in non-EU markets.

Corporate tax

The corporate tax rate in Australia is 30% for income after July 2015, or 28.5% if you are a small to medium size business.

Read more about corporate tax in Australia.

Import regulations

The Australian Border Force regulates all goods imported into Australia. You’ll need to provide import declarations and documents and pay all relevant duties and taxes.

You should check you’ve paid excise duty on any alcohol, fuel, tobacco or other excise equivalent products you send to Australia.

Quarantine regulations

Australia’s biosecurity measures aim to prevent disease and pests entering the country through a strict inspection or treatment regime. There’s little you can do if your shipment encounters quarantine issues at Australian customs.

Check whether your goods are subject to biosecurity import conditions in Australia and its external territories.

Product standards

Though Australia has adopted international standards where possible, there are Australian standards with no international equivalent which may require your product to be modified, or impact how your product enters the market.

Check Australia’s voluntary standards, mandatory standards and codes of practice to make sure you’re meeting legal requirements for products.

Packaging and labelling

Packaging must meet Australian consumer health and environmental legislation. There are specific labelling requirements for:

  • chemical products
  • cosmetics
  • electronic goods
  • foodstuffs
  • most therapeutic products

All labelling must use the metric system.

You can read guidance on food labelling from Food Standards Australia New Zealand (FSANZ).

Trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.

Check for any reported barriers to trading with Australia.

Report any trade barriers that are affecting your business so you can get help fixing them.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.

Read more about IP in Australia.

Payment terms

Payment conditions should be set out in your contract and must be factored into prices. For business-to-business transactions, these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment. You need to use secure terms of payment in Australia through a letter of credit, cash, or partial payment in advance.

Logistical challenges

Australia’s sheer size and distance from the UK means you may face challenges around:

  • travelling (24 hours from the UK by plane)
  • the time and money needed to ship or send goods
  • the time difference (7 to 11 hours ahead of the UK)
  • vast distances between states and cities within the country

Business culture

It’s important to note that Australians are informal in their business interactions. First-name terms tend to be the norm in most business situations. Directness and plain speaking are valued.