Deloitte Australia’s indirect tax specialists work with Australian and non-resident businesses to help them understand and comply with Australian indirect tax obligations.
We provide a broad range of advisory and compliance services covering the following Australian indirect taxes:
Goods and Services Tax
GST, at the rate of 10%, is payable on taxable supplies connected with Australia, and on taxable importations. GST is not applicable to GST-free and input taxed supplies. Generally, entities that are registered for GST can claim a credit for GST paid on the inputs acquired for use in their enterprise. However, entities making input taxed supplies are unable to claim GST credits unless one of several concession measures applies. Non-resident businesses making cross-border supplies of low value goods or digital products to Australian consumers may be required to register and to remit GST on those supplies.
Global Trade Advisory (customs duty)
Goods imported into Australia may be subject to customs duty depending on a range of factors including the good’s tariff classification and origin. Australian-specific considerations for businesses engaged in cross-border trade in goods include the application of the Tariff Concession System, concessional treatment under Australia’s tariff or its bilateral/multilateral free trade agreements, benefits offered by the Australian Trusted Trader scheme, current anti-dumping measures, customs duty transfer pricing adjustment obligations, customs duty refund opportunities, and more.
State Taxes (stamp duty, land tax and other state taxes)
Stamp duty, land tax and a variety of other taxes imposed by the Australian states and territories add cost and complexity to doing business and acquiring property in Australia. Read more.
Excise duty is a tax on certain alcohol, fuel and petroleum, and tobacco goods that are produced or manufactured in Australia. Businesses involved with excisable goods are subject to licencing or permission arrangements covering matters including the production, manufacture, storage, dealing and underbond movement of the goods. Excise rates are high across all types of excisable goods, and increase at least twice each year.
Fuel Tax Credits
The FTC system provides businesses with a credit for the fuel tax (i.e., excise or customs duty) included in the price of fuel that a business uses in heavy vehicles, light vehicles travelling off public roads, machinery, equipment, and in non-fuel uses. Fuel tax rates increase at least twice each year, and businesses need to ensure that their FTC claims are made using the correct rates and based on accurate acquisition and usage data.
Luxury Car Tax
LCT is a 33% tax on cars that have a GST-inclusive value above the prescribed LCT threshold. LCT is mainly payable by car dealers who sell or import luxury cars. LCT can be effectively deferred until the retail sale of a luxury car or a change in use of that car, using decreasing adjustments and quoting provisions. LCT compliance can be challenging for car dealers, as certain uses can cause the LCT liability to arise earlier than the retail sale of the car.
Wine Equalisation Tax
Wine equalisation tax (WET) is a complex tax that is applied at a high rate (29%) to a large number of transactions. It applies to grape wine products as well as certain other alcohol products including fruit wines, ciders, sake, and others. WET considerations primarily impact producers, importers, and wholesalers.