The US–Australia Free Trade Agreement (AUSFTA) eliminates customs duty on the vast majority of US-origin goods entering Australia. In 2026, the practical workflow for a buyer in Sydney, Melbourne, Brisbane, or Perth importing from the US is short:
- Confirm AUSFTA preference applies
- Get a Certificate of Origin from the US supplier
- Pay 10% GST on (CIF + Duty + Freight + Insurance)
- Clear via the Integrated Cargo System (ICS) above AUD $1,000
What AUSFTA actually covers
AUSFTA covers virtually all tariff lines for goods originating in the US that meet the rules of origin. Common product categories that benefit:
- Industrial machinery and parts
- Medical devices
- Cosmetics and beauty products
- Apparel and footwear
- Auto parts
- Sports equipment
- Branded food and beverage products
The Department of Foreign Affairs and Trade (DFAT) publishes the official tariff schedule — if your six-digit HS heading appears with a "Free" or "AUSFTA" notation, you're in.
How GST is calculated
The Australian GST on imports is 10% of the Taxable Importation Value (TIV):
TIV = CIF + Customs Duty + Australian Freight + Insurance
GST = TIV × 10%
Note this is different from the UK and EU formulas where VAT is computed on (CIF + Duty) only. The Australian formula includes inbound freight and insurance in the GST base.
Worked example: AUD $50,000 order of US-origin equipment
| Line | Value |
|---|---|
| FOB at US port | AUD $50,000 |
| Freight + insurance to Sydney | AUD $4,500 |
| CIF | AUD $54,500 |
| Customs duty (AUSFTA, 0%) | $0 |
| GST base (TIV) | $54,500 |
| GST (10%) | $5,450 |
| Import Processing Charge | ~$192 |
| Total | AUD $60,142 |
Without AUSFTA at 5% MFN duty, the same order lands at AUD $60,996 — the FTA saves you about $854. Small per-shipment, meaningful over a year.
The Low Value Goods (LVG) threshold
For shipments under AUD $1,000 the customs duty waives but GST still applies. The supplier or marketplace charges GST at the point of sale via the LVG GST regime. If you're a registered Australian business, you can typically reclaim the LVG GST as input tax credit.
What to ask your US supplier
Send this in writing before you wire the deposit:
- "Will you issue an AUSFTA Certificate of Origin for this shipment? What HS code will you certify under?"
- "Are the goods US-origin under the AUSFTA rules of origin, or are they imported from a third country and resold?"
- "Will you provide the certification with the commercial invoice, or do we need to request it separately?"
A US supplier that hesitates on these is often a reseller, not a producer. Model the order at full duty in that case using the Australia Landed Cost Calculator.
