Import Duty Australia 2025: New Rules, Costs & What Aussies Need to Know

It’s no secret that Australians love buying from overseas—whether it’s gadgets from the US, fashion from Europe, or household goods from Asia. But with the federal government tightening import duty rules in 2025, every international purchase could soon cost more than you bargained for. From new thresholds to digital customs tracking, here’s how the latest changes will affect your hip pocket, your business, and your next online splurge.

What Is Import Duty and Why Is It Changing?

Import duty is a tax charged by the Australian government on goods brought into the country. Traditionally, it’s designed to protect local industries, ensure fair competition, and generate revenue. In 2025, the government is rolling out updates to import duty regulations as part of a broader effort to modernise customs, crack down on tax leakage, and support domestic manufacturing.

Key changes for 2025 include:

• Lowered GST and duty-free threshold: The threshold for paying GST and duty on imported goods has dropped from $1,000 to $500. This means more low-value parcels are now subject to taxes.
• Digital customs clearance: A new digital tracking system is in place, making it easier for border officials to spot and stop undeclared or under-declared imports.
• Targeted enforcement: Electronics, clothing, and luxury goods are in the spotlight, with customs prioritising these for audits and checks.

Who Will Feel the Pinch: Shoppers and Businesses

The updated import duty rules will impact a wide cross-section of Australians. Here’s how:

• Online shoppers: If you love scoring deals from overseas retailers like Amazon, Shein, or eBay, expect to see new fees at checkout or on arrival. For instance, a $600 pair of sneakers from Europe will now attract GST (10%) and possibly a duty (typically 5-10% depending on the product category).
• Small businesses: E-commerce entrepreneurs and retailers importing stock will face higher upfront costs. For example, a boutique importing $10,000 of textiles in one shipment could see duties add hundreds to their expenses, affecting profit margins and pricing strategies.
• Travellers: The personal duty-free allowance remains at $900 for adults, but anything above that is now far more likely to be checked and taxed—especially electronics and designer goods.

Real-world scenario: In March 2025, Sarah, a Melbourne-based beauty retailer, imported a $2,000 shipment of skincare products from Korea. Under the new rules, she paid $200 in GST and $120 in import duty—costs she had to factor into her retail prices to stay profitable.

Strategies to Minimise Import Duty Pain

While the changes are set in stone, there are smart ways for Australians to limit the impact of import duties:

• Bundle purchases: If possible, consolidate orders to reduce the number of shipments and potentially negotiate with suppliers for bulk discounts.
• Understand product classifications: Duty rates vary by product. Use the Australian Border Force’s Tariff Classification tool to check if your items attract higher or lower rates.
• Explore Australian alternatives: With duties making imports more expensive, now may be the time to seek local suppliers or Aussie-made brands—especially for goods like apparel, electronics accessories, or household products.
• Check for Free Trade Agreement (FTA) exemptions: Australia has FTAs with countries like China, Japan, and the US. If your goods meet the ‘rules of origin’ requirements, they may be exempt from some duties, though GST generally still applies.
• Keep paperwork in order: Accurate invoices and clear descriptions speed up customs processing and reduce the risk of surprise charges.

2025 Policy Highlights and What’s Next

In the May 2025 federal budget, the government announced an extra $80 million for customs enforcement technology, aiming to further reduce tax evasion and streamline parcel processing. The Australian Border Force has also flagged a crackdown on mis-declared goods, so transparency is more important than ever.

For businesses, the Department of Home Affairs is piloting a new ‘Trusted Trader’ program, offering expedited clearance and reduced audits for compliant importers—a potential game-changer for regular importers who play by the rules.

Conclusion: Stay Smart, Shop Savvy

Import duty isn’t just a distant government policy—it’s now front and centre for every Australian who shops or sells across borders. With more goods caught in the net, it pays to be proactive: know the rules, factor in extra costs, and explore local or FTA options where possible. The 2025 changes are here, and smart planning will keep your budget—and your business—on track.