Govt cracks down on airport TRS rebates for Aust travellers

[SeatBackForward]

If you run a business GST claim from TRS is not relevant for items used as part of that business as the GST can be use as an input tax credit.

It's personal items such as a Galaxy Tab; clothing, jewellery, and other easy to carry items that are best suited.

I always thought that strictly speaking, you weren't supposed to bring these items back into Australia. ?

 

[Himeno]

Clothing is the main one. Also when I purchased new spectacle frames I happened to be going overseas within the allotted time, so claimed that too.

"allotted time"?

 

[Lynda2475]

llotted time

You can only claim for items where the total value of the purchase receipt from one store is >$300 and was purchased within 60 days of departure.

Prior tot he TRS if you bought a duty free camera or phone, it was sealed in a bag and you couldn't open til you were on board the plane - meaning you couldn't verify it was working nor be shown how to use it before travelling. Now with TRS you can get the best price, open it and configure the device (i.e. software updates etc) before departure.

 

[TomVexille]

I always thought that strictly speaking, you weren't supposed to bring these items back into Australia. ?

I've never seen anything that states that. Only that anything claimed forms part of your duty free allowance

"allotted time"?

60 days

 

[Lynda2475]

Only that anything claimed forms part of your duty free allowance

This and only if you bring it back.

So if you leave whatever you claimed through TRS overseas (i.e. it was a gift) then you will have your full allowance left for when you return

 

[TomVexille]

This and only if you bring it back.

So if you leave whatever you claimed through TRS overseas (i.e. it was a gift) then you will have your full allowance left for when you return

Absolutely

 

[jsf]

How is this different from purchasing duty free? Or goods purchased from overseas? (If value less than $900)
Everytime You enter the country you are allowed (entitled) to bring in $900 goods and 2.25L alcohol.

If I can't buy an iPad and claim the GST anymore, I'd buy it from duty free, same price as before GST. Or buy it from overseas and spend the money overseas.

 

[jsf]

I would say there is a certain dollar threshold where this procedure is triggered.

On my last trip I was behind an Australian Chinese (AU passport) who was speaking in broken English about not understanding what the customs officer was telling him about his $49k Cartier watch and subsequent $4k+ refund - she said it has been flagged against his passport and if he returns with the watch he will need to pay the GST duty.

They certainly have never bothered me when I’ve claimed an iPhone or camera.

Was it flagged at E Gate or staffed counter?

 

[Lynda2475]

How is this different from purchasing duty free? Or goods purchased from overseas? (If value less than $900)

It isn't, except that buying from a non duty free story usually enables you to get a better price, set up the item before departure and still claim back the GST.

WRT bringing goods in duty free, unless it is new in packaging or something that isn't sold in Aus, how would customs even know you bought it overseas? They dont as far as I know, keep a record of what you took out of the country on departure (except where you claimed TRS), so if you did buy an expensive item overseas (>$900) i.e. jewellery or phone how can they prove you didn't have it on you when you left ?

 

[Flashback]

It isn't, except that buying from a non duty free story usually enables you to get a better price, set up the item before departure and still claim back the GST.

WRT bringing goods in duty free, unless it is new in packaging or something that isn't sold in Aus, how would customs even know you bought it overseas? They dont as far as I know, keep a record of what you took out of the country on departure (except where you claimed TRS), so if you did buy an expensive item overseas (>$900) i.e. jewellery or phone how can they prove you didn't have it on you when you left ?

They could find the receipt or packaging, it's amazing how often a paper trail leads to someone being caught......

 

[Deleted member 29185]

WRT bringing goods in duty free, unless it is new in packaging or something that isn't sold in Aus, how would customs even know you bought it overseas?

Slightly different, but something that really irks me from time to time is ridiculous customs questions from over zealous agents (not necessarily AU).

An example from this week, was a customs guy in HGU ruffled through my luggage and pulled out my analogue luggage scales. Luggage weights are pretty critical where we fly in the aircraft we fly in, so I regularly monitor my luggage weight and I got absolutely sick of the digital scales failing. 3 months ago, I spied a great analogue luggage scale at a hardware store in Popondetta and bought them (PNG GST inclusive) for K16. The scales have come and gone with with from PNG a number of times since then, but they still look fairly new. He asked me were they new, to which I truthfully replied no, they are about 3 months old. He then wanted to see the receipt! Hey ... where on earth is logic in that. Even if they were new, I'm permitted, perfectly within the law, to bring K1000 worth of personal, but new goods into PNG. I had very little with me and nothing else looked even remotely new. The scales are quite obviously cheapies. After some debate he let me continue, but it is in PNG legislation that travelers are supposed to carry receipts to prove their stories.

I'm not sure if that requirement is the same in AU, but think of the ramifications ... that watch, no receipt, forfeit it. That camera, no receipt, forfeit it. That 30 year old wedding ring, no receipt, forfeit it ... hang, that wife, no receipt, forfeit her!

 

[Zinger]

I noticed a tax free store at SYD was selling iPhones at a reduced price compared to the RRP.

If I bought one prior to a flight out of the country would I need to pay the entire GST component on my return, or is there still a depreciation schedule for a reduced rate of GST payable?

A few years ago I bought a new laptop, claimed the GST but was told to declare it on my return. When I did so I was just waved on.

 

[Flashback]

I noticed a tax free store at SYD was selling iPhones at a reduced price compared to the RRP.

If I bought one prior to a flight out of the country would I need to pay the entire GST component on my return, or is there still a depreciation schedule for a reduced rate of GST payable?

A few years ago I bought a new laptop, claimed the GST but was told to declare it on my return. When I did so I was just waved on.

A small amount of depreciation will be factored in. As you say, often they'll just waive you on as it's easier/quicker for them.

 

[opusman]

Interestingly the question on the IPC is:

Goods obtained overseas or purchased duty and/or tax free in Australia...

Now if you buy an iPhone in your local Apple store you will pay tax on it at the time. Just because you later get a refund of the GST doesn't mean you purchased it tax free

 

[Cryptarcadian]

I was departing SYD two weeks ago, mid-morning on a Thursday, and there was no online processing for TRS claims at all -- everyone was handed a form to fill in along with an envelope, with a box at the exit to drop them in (sounds like the manual process described earlier in the thread). Apparently they'll eventually mail the receipts back to us as well.

Does anyone know how long it takes for these to be processed?

I asked one of the staff members there if this was typical, and whether I should expect to see more of it. The answer was that it was because they were understaffed. Is the longer-term thinking that it's actually cheaper for Border Farce to process these in the back-office (with presumably lower-paid staff)?

 

[Deleted member 29185]

Last (and only) time I did the envelope drop (about Sept this year), it was a few days.

 

[Daver6]

DId the letter drop in PER a couple of months ago. Money and receipt back in less than a week.

 

[Flashback]

I was departing SYD two weeks ago, mid-morning on a Thursday, and there was no online processing for TRS claims at all -- everyone was handed a form to fill in along with an envelope, with a box at the exit to drop them in (sounds like the manual process described earlier in the thread). Apparently they'll eventually mail the receipts back to us as well.

Does anyone know how long it takes for these to be processed?

I asked one of the staff members there if this was typical, and whether I should expect to see more of it. The answer was that it was because they were understaffed. Is the longer-term thinking that it's actually cheaper for Border Farce to process these in the back-office (with presumably lower-paid staff)?

2 instances of this (each time at Perth..... lazy buggers!) - first, payment was processed in a week or two, took 6 weeks to receive the paperwork and receipt back (sent to UK). Second took only a few days (for payment and delivery of paperwork and receipt) which was sent to Perth.

 

[robinsparkles]

I was departing SYD two weeks ago, mid-morning on a Thursday, and there was no online processing for TRS claims at all -- everyone was handed a form to fill in along with an envelope, with a box at the exit to drop them in (sounds like the manual process described earlier in the thread). Apparently they'll eventually mail the receipts back to us as well.

Does anyone know how long it takes for these to be processed?

I asked one of the staff members there if this was typical, and whether I should expect to see more of it. The answer was that it was because they were understaffed. Is the longer-term thinking that it's actually cheaper for Border Farce to process these in the back-office (with presumably lower-paid staff)?

I've done the envelope routine several times in SYD over the last couple of years and receiving my receipts back in the mail has ranged from under 1 week to 3-4 weeks.

 

[Flashback]

I've done the envelope routine several times in SYD over the last couple of years and receiving my receipts back in the mail has ranged from under 1 week to 3-4 weeks. Although having pre-filled my request on the app prior has meant bypassing this routine.

Not if they're not manning the desks.... I've pre-filled online every time, but if there's no one at the desk they can't process it!