Govt cracks down on airport TRS rebates for Aust travellers

[Quickstatus]

We make sure all clothing bought overseas are used/washed so that on return they do not appear brand new.

Also discard all tags/labels/receipts.

Virtually all goods we buy overseas have already beem taxes. So it would be unfair to be double taxed

 

[Danger]

. . . The issue isn't people abusing theTRS scheme, it is people not declaring things on the way back into the country and as someone else pointed out. if you buy a shiny MacBook or camera overseas then you also need to declare that on the way back in (which I bet most people do not)

We make sure all clothing bought overseas are used/washed so that on return they do not appear brand new.

Also discard all tags/labels/receipts.

Virtually all goods we buy overseas have already beem taxes. So it would be unfair to be double taxed

I'm confused. Why do these things have to be declared?

 

[blackcat20]

I'm confused. Why do these things have to be declared?

Because duty hadn't been paid on them in Australia. They don't care that you were taxed where you bought them.

 

[RooFlyer]

Virtually all goods we buy overseas have already beem taxes. So it would be unfair to be double taxed

Yes but it's the Australian tax man that has to be fed. Stuff imported into Australia is subject to lawful tax. Our local history society paid GST on books we had printed in HKG and imported.

They give a $900 value exemption, but it doesn't matter if it's already been taxed overseas.

 

[JessicaTam]

Yes but it's the Australian tax man that has to be fed. Stuff imported into Australia is subject to lawful tax. Our local history society paid GST on books we had printed in HKG and imported.

They give a $900 value exemption, but it doesn't matter if it's already been taxed overseas.

[off topic]
That reminds me, can you put me down for a copy?
[/off topic]

 

[RooFlyer]

Oooh, yes but pls let's take all stuff on that into PMs so I don't get a ticket for commercial soliciting on AFF.

 

[Vic]

I read a view here that because people illegally fail to declare, then TRS is a rort.
Does people abusing the income tax system mean it's also a rort?

 

[Quickstatus]

The easiest way to fix this is for anyone using TRS to have to answer a supplementary question at immigration:

“Are you bringing any goods into Australia which have been TRS GST refunded” Nic the last 12 months”

Customs should have a list of people who have made TRS refunds and these passengers should have a flag next to their passport numbers. So they only need to ask those

If no then the immigration/customs officer makes a judgement as to whether it’s a red or green.

 

[blackcat20]

The easiest way to fix this is for anyone using TRS to have to answer a supplementary question at immigration:

“Are you bringing any goods into Australia which have been TRS GST refunded” Nic the last 12 months”

Customs should have a list of people who have made TRS refunds and these passengers should have a flag next to their passport numbers. So they only need to ask those

If no then the immigration/customs officer makes a judgement as to whether it’s a red or green.

But why? We have a $900 duty free threshold, so anything under that which has had a TRS refund is exempt.

 

[RooFlyer]

I read a view here that because people illegally fail to declare, then TRS is a rort.
Does people abusing the income tax system mean it's also a rort?

I think I said it was a rort because it was so easily abused - that is, it occurred as a matter of course. There are elements of the income tax system that can be rorted as well - for instance, claiming an auto deduction for of work clothing where it isn't work specific etc. But unless the government closes the loopholes tightly, then arguably they are there to be exploited. That said, I also believed at first that there was a signed declaration at the point of claiming - there isn't apparently.

And again, there have been boasts on AFF from people saying how they got a TRS for some or several expensive items, and they brought them back all as 'used' so didn't declare them above $900 allowed, so had a minor windfall at the tax-payer's expense.

Never-the-less, if its a 'Tourist Refund Scheme' then one would think it was intended for tourists to Australia. I'm a long way from being holier-than-thou, believe me, but this one has always struck me as an anomaly which I don't use.

 

[Hvr]

The easiest way to fix this is for anyone using TRS to have to answer a supplementary question at immigration:

Actually it could be automated via SmartGate.

 

[There'sOnlyOneJimmy]

We make sure all clothing bought overseas are used/washed so that on return they do not appear brand new.

Also discard all tags/labels/receipts.
- - - snip

I think I can save you a little time & effort next time you travel...
Extract from Dept. Of Home Affairs website (my bolding):

Duty free concessions
What items can be brought in free of duty and tax?
Most personal items such as new clothing, footwear, and articles for personal hygiene and grooming (excluding fur and perfume concentrates) may be brought into Australia in your accompanied baggage, free from duty and tax.​

Link to page: Duty free concessions

 

[Quickstatus]

I think I can save you a little time & effort next time you travel...
Extract from Dept. Of Home Affairs website (my bolding):

Duty free concessions
What items can be brought in free of duty and tax?
Most personal items such as new clothing, footwear, and articles for personal hygiene and grooming (excluding fur and perfume concentrates) may be brought into Australia in your accompanied baggage, free from duty and tax.​

Link to page: Duty free concessions

As always read the next paragraph...

 

[There'sOnlyOneJimmy]

As always read the next paragraph...

Yes, I can see why you say that. But (not a lawyer...) my reading of the next paragraph (rightly or wrongly..) is that it refers to some other class of stuff that is separate from the personal items itemised in the first para.

Para 1 refers to “personal items”, whereas para 2 refers to “personal goods”.
Para 1 refers to “new” clothing, footwear, etc. which is entirely incompatible with the para 2 requirement to be “used by you overseas for 12 months or more”.

There’s no doubt that there’s room for confusion...
FWIW my (completely uninformed) guess is that the last para in the more extended website extract below gives us a hint as to the true meaning of para 2: I think that para 2 is meant to start with the words “general goods” rather than “personal goods”. If my interpretation is right, then the whole section would make sense: NEW clothing, footwear, etc. is OK, and USED (>12 mth) gifts, souvenirs, cameras, electrical, etc. are also OK.

Maybe another of our members has some actual knowledge of these laws/regs and can assist with whatever is the correct interpretation.

More extended website extract below:

Duty free concessions
What items can be brought in free of duty and tax?
Most personal items such as new clothing, footwear, and articles for personal hygiene and grooming (excluding fur and perfume concentrates) may be brought into Australia in your accompanied baggage, free from duty and tax.

Personal goods are free from duty and tax if they are:

• owned and used by you overseas for 12 months or more
• imported temporarily (a security may be required by the Department).

For other goods, limits apply. These include goods that are purchased overseas and goods that are purchased in Australia duty or tax free (that have been previously exported), or from an inwards duty free shop on arrival into Australia. Duty free concessions do not apply to commercial goods.

If you are aged 18 years or over, you can bring up to AUD900 worth of general goods into Australia duty free.

If you are under 18 years of age the limit is AUD450.

If you are a crew member, the limit is AUD450.

There are no duty free concessions on tobacco or alcohol for travellers aged under 18 years of age.

Travelling with family
Families coming back to Australia on the same flight or voyage may combine (pool) their individual duty free concession limits. To do this, families must stay together when going through Customs clearance.

A family includes a person and his or her de facto partner (including same-sex couples) and any of their children under 18 years of age; or a husband and wife, and any of their children.

For example, a family of two adults and two children would have a combined duty free allowance of AUD2700.

A duty free concessions flyer is available in multiple languages

General goods
General goods include gifts, souvenirs, cameras, electronic equipment, leather goods, perfume concentrates, jewellery, watches and sporting equipment
​

 

[Quickstatus]

Who knows but what I know is that assumptions are often wrong.

In any case, I’ve never been asked the value of my “goods “ or “items”.

I think they won’t get suspicious if the amounts carried are reasonable. Of course if I were carrying 5 MacBook pros and travelling alone then questions could be asked

I do wish they would ask MrsQS about the excessive number of shoes

 

[Quickstatus]

Actually it could be automated via SmartGate.

Come to think of it, why not just get rid of it.

 

[Hvr]

Come to think of it, why not just get rid of it.

I suspect the real reason that it won't be removed is because it would kill the retail side of the airport.

The money they bring in to the airport ensures that airport management/owners will lobby vociferously if the government ever tries to get rid of TRS.

Without retail airports will have to find another way to gouge customers out of money.

 

[JohnK]

Virtually all goods we buy overseas have already beem taxes. So it would be unfair to be double taxed

Extremely unfair.

Do people feel guilty and declare items they have bought overseas? Many years ago I brought back jewellery for myself and my parents and did not declare it on arrival and would do the same thing in future in a heartbeat.

I don't feel any guilt either as I used taxed income dollars to purchase the gifts and I'm not paying GST/duty here too.

 

[Danger]

Because duty hadn't been paid on them in Australia. They don't care that you were taxed where you bought them.

But the incoming passenger card says such goods only need to be declared if the total value is above $900.

 

[Quickstatus]

But why? We have a $900 duty free threshold, so anything under that which has had a TRS refund is exempt.

That’s ok but TRS does not have an upper limit unlike the $900 for coming in.