departing Australia

GST to be refunded to passengers departing Australia

By Sophie Foster Hildebrand

If you depart Australia

after its Goods and Services Tax (GST) is introduced, you could be entitled to a refund of the tax you paid on your shopping spree.

Its all part of an initiative of the Australian government’s new tax system called the Tourist Refund Scheme (TRS).

But it does not just apply to tourists. Administered by the

Australian Customs department, TRS means that anyone departing Australia may be entitled to a refund of GST and wine equalisation tax (WET) on goods bought from Australian retailers.

Come July 1 this year, the refund can be claimed from customs officers at Tourist Refund Scheme booths which will be located at international airports or cruise terminals in the country.

The TRS will include Australian passport holders and the refund will be the amount of GST (and WET) payable for the goods.

For example, travellers buying goods to the value of As33o can claim a refund of the As3o GST. This will only apply to taxed goods bought on, or after, July 1,2000.

As with everything, though, certain conditions apply. One is that international travellers need to buy goods worth $3OO or more from one store, no earlier than 30 days before they leave Australia.

Goods of all kinds will be eligible for a refund provided the passenger takes the goods on board as accompanied baggage. This excludes tobacco and alcohol (except wine subject to WET) which will be available duty and tax free at duty-free shops. But if you’re thinking of claiming a refund on GST paid for

accommodation and food while in Australia, forget it.

“There will be no refund for GST paid on services, including accommodation or on goods consumed in Australia,” an official statement said.

To claim a refund at the airport or port, shoppers must be able to show a tax invoice for goods bought from any retail store in Australia.

As part of the new tax system, retailers must provide a tax invoice to any customer who asks for one so they can claim input tax credits.

Customs officers at the airport will need the tax invoice to pay the refund. Travellers also need to present the goods, proof of travel and their passport to Customs officers at the TRS booth to collect their refund.

The Australian Customs department advises travellers to arrive early at the airport to take advantage of the scheme. Come July, simply look for the TRS signs as soon as you go through the customs barrier.

Payment of the refund will be in Australian dollars for amounts up to As2oo. But the As2oo limit is currently under discussion and may change. For refunds of more than As2oo or for passengers who prefer a non-cash refund,

customs officers will give the traveller a payment form which can be placed in a drop box near the booth. Travellers can then nominate payment by cheque (in A$ or foreign currency) or payment into credit card account or Australian bank account But the department warns that if the goods are brought back into Australia, GST or WET could be payable if the amount

exceeds normal passenger concessions.

Normal passenger concessions include: - SA4OO worth of goods not including tobacco or alcohol (As2oo for travellers under 18 years of age). For example, cameras,

electronic equipment, leather goods, perfume

concentrate, jewellery, watches, and sporting

goods.

- 1125 ml alcoholic liquor (including wine, beer or spirits) and 250 cigarettes, or 250 grams of cigars or tobacco products other than cigarettes, for travellers aged 18 years and over. - Most personal items such as clothing, footwear, articles for personal

hygiene/grooming.

- Personal goods owned and used for at least 12 months can also be brought into Australia without payment of duty and GST (proof of date of purchase may be required).

If in excess of the normal concessions, the tax liability for passengers arriving in Australia will be calculated by taking into consideration normal passenger concessions, depreciation allowance for some types of goods and the $5O minimum collection waiver provided the goods are declared.

So if you’re a traveller, don’t forget to ask for a tax invoice when shopping in Australia after July 1. ■