From July 2018, GST will be applied to all low value purchases sent to Australia from overseas.

As you‘d expect, all the details are still a little fuzzy. But we do know that a 10% tax on foreign goods will be collected by the ATO starting this July. The tax will apply to goods as well as freight and insurance connected with the purchase.

Generally the GST will be collected by the seller at your time of purchase.

Information for consumers is available online from the ATO at
https://www.ato.gov.au/business/international-tax-for-business/gst-on-low-value-imported-goods/information-for-consumers

FEES & CHARGES

When purchasing online from overseas, you may be hit with any number of fees and charges. Here we outline the a variety of charges that will add to the cost of your purchase.
For a comprehensive explanation of these terms, please contact the ATO, your financial institution or your financial advisor.

Currency Exchange Rate vs Sell Rate
We all know about exchange rates, and how a low Aussie Dollar means you get US dollars for your buck. But did you know that when you use your credit card to buy from foreign merchants, your bank charges you their "Sell RATE" - not the current exchange rate.
What‘s the Sell Rate? It‘s the exchange rate dropped a little bit lower to give the banks a bit of extra juice. And it can be upward of 3 percent, so it can add a significant cost to your purchase.
Example - At the time of writing this, the exchange rate for one Australian Dollar is 0.73617 US dollars. However, The NAB‘s sell rate is just $0.7036 USD, and the Commonwealth Bank is offering a sell rate of just $0.6978 USD. So what‘s it mean for you? Less value than you thought, and a bigger charge on your credit card.

Credit Card Surcharges (also known as International Transation Fees)
As if the sell rate juice wasn‘t enough, most Credit Cards and Debit Cards will incur a surcharge on all foreign transactions. The amount will vary depending on your bank and the type of credit card you have but rates as high 3.0% are not uncommon. Some Premium Credit Cards with high annual fees have no International Transaction fees. Check with your bank to see the rate applicable to your card.

GST
From July 2018 the 10% GST will be added to all purchases from major US online retailers, including marketplaces such as eBay and Etcy. GST will also apply to freight and insurance costs associated with the purchase.

Import Declaration Charge
An Import Declaration Charge of $48.85 applies to all purchases valued at more than $1000AUD. GST and other applicable charges still apply.

Freight
Be sure to include the cost of freight in your calculations - some online retailers charge higher than expected shipping rates, particularly to foreign buyers.

Insurance
If your purchasing expensive or delicate goods, shipping insurance may be selected by you, or may be required by the seller. Be sure to include any insurance charges when calculating the cost of your purchase.