Why is duty free champagne so expensive?

[yngflyer]

Hey just wondering if this is right that duty free champagne is more expensive than you can buy at the bottle shop normally?

I just had a quick look on the Sydney airport duty free website for an upcoming trip- and most of the bottles are far more expensive! Does everyone steer clear of champagne/wine duty free and just buy spirits?

Thanks

 

[TomVexille]

That's what I find.

 

[NM]

because Duty-Free does not mean Profit-Free

 

[Austman]

And because the duty on Champagne is only 5% (+$9.57/l) and the tax (GST) is 10%.

So any duty and tax savings are not that huge - but profits might be.

 

[Daver6]

And because the duty on Champagne is only 5% (+$9.57/l) and the tax (GST) is 10%.

So any duty and tax savings are not that huge - but profits might be.

I thought it was 29% WET + 10% GST?

And to the OP, occasionally there is a bargain to be had on higher end champagne, but you need to know your prices. I don't think I've ever seen duty free table wine that is cheaper than you can find elsewhere in Australia.

 

[Austman]

I thought it was 29% WET + 10% GST?.

I think you're right. "Champagne Bottle has an import duty rate of 5% + AU$9.5724 per liters and a GST rate of 10%, Wine Equalisation Tax rate is 29%". I suppose if it's a $50 bottle, those taxes bring it up to about $80.

I suppose too that the big retailers have more buying power and so get lower prices from the Champagne suppliers. The DF shops are few and seem to concentrate on spirits sales.

 

[Buzzard]

I just stick to buying spirits

 

[medhead]

Probably another factor is that people who buy it for that special trip duty free probably don't normally buy it otherwise. Hence don't know the prices and can get ripped off easier.

 

[yngflyer]

thanks for the replies
i guess they are hoping people buy it for the convenience
vodka it is

 

[Boca68]

I thought it was 29% WET + 10% GST?

This is correct, but as a side note to this, the 29% WET, is not excluded under duty free terms. Which is why, as others have pointed out, many table wines at Duty Free outlets are quite close to retail, if not more.

 

[Daver6]

This is correct, but as a side note to this, the 29% WET, is not excluded under duty free terms. Which is why, as others have pointed out, many table wines at Duty Free outlets are quite close to retail, if not more.

Strange about WET given you can claim that back via the TRS.

 

[NZflygirl]

Sometimes duty free is cheaper but I find the supermarkets (in NZ) have some amazing deals at times. Scored Dom for $184 which is usually well above $200 duty free. So I usually do a quick price comparison on the phone. The other thing duty free is good for is buying the higher end champagne not stocked in bottle stores. Can't be bothered waiting for them to get it in, especially if you just want one bottle to try.

 

[opusman]

Duty free booze at airports is more often than not not worth the effort. Check the regular price on Dan Murphy's vs what they charge at the airports and there's often not much in it (and Dan's is often cheaper).

Actually buying wine and spirits overseas is a different matter, as this can be vastly better value, but then you have the LAG rule to worry about.

 

[blackcat20]

Actually buying wine and spirits overseas is a different matter, as this can be vastly better value, but then you have the LAG rule to worry about.

I buy mine retail in the States. Pack it in your suitcase and there are no LAG issues at all.

 

[opusman]

I buy mine retail in the States. Pack it in your suitcase and there are no LAG issues at all.

Yes as long as you pack it well.

 

[blackcat20]

Yes as long as you pack it well.

Usually just make sure it has clothes around it on all sides, touch wood I've never had a problem (despite my suitcase sometimes appearing looking like it has been run over).