LVIG: Low Value Imported Goods and GST Explained

What is LVIG (Low Value Imported Goods)?

Low value imported goods (LVIG) are goods with a customs value of A$1,000 or less. GST is not collected at the border; instead the overseas supplier, marketplace operator or redeliverer is treated as the supplier and accounts for the GST.

Low value imported goods (LVIG) are goods with a customs value of A$1,000 or less that are not tobacco, tobacco products or alcohol. At the border, goods up to A$1,000 are generally imported without duty, taxes or charges. The GST is instead dealt with through special rules for the supplier. General information, not tax advice; confirm with the ATO or a registered tax agent.

Who is responsible for the GST?

A supply of low value goods is an "offshore supply" only if the goods are brought to Australia and the supplier, platform operator or redeliverer delivers or arranges delivery into Australia. Where an electronic distribution platform (a website, portal, store or marketplace) is involved, its operator is treated as the supplier, counts the sales in its turnover and pays the GST. A redeliverer, such as an offshore mailbox service, can be treated as the supplier in some cases.

Suppliers of offshore low value goods need not issue tax invoices, but must give the recipient notice of the GST amount when the price is first agreed.

Does this affect an Australian seller importing stock?

Mostly through the A$1,000 line. If you import a consignment over A$1,000, it is a full import: duty, 10% GST and an import processing charge are payable. Under A$1,000 the border collects nothing, but the LVIG rules can apply to the offshore seller, platform or redeliverer. This is a combined reading of ABF and GST Act pages, not a direct quote, so check your own case.

If a supplier reasonably believes goods will be a taxable importation (customs value over A$1,000), the supply is not treated as an LVIG offshore supply.

Splitting one shipment into several small consignments to stay under the line is risky. This page does not cover how the ABF treats split consignments, so ask a licensed customs broker.

What LVIG does not cover

LVIG is about GST on small consignments. It does not remove other import rules: prohibited and restricted goods still need permission from the relevant agency. Biosecurity requirements are separate, see BICON.

For FBA stock shipped from China the bigger issue is usually the full import, covered in import GST and duty for Amazon FBA in Australia and LVIG and GST for Amazon sellers. Start with GST in Australia for the registration rules, and import declarations for the paperwork.

Next step

Blooprint manages Amazon FBA for Australian sellers once your inbound stock and tax set-up are sorted.

Frequently asked questions

What counts as a low value good?

Under the GST Act, goods with a customs value of A$1,000 or less that are not tobacco, tobacco products or alcoholic beverages.

Does an LVIG rule apply to stock I already hold in Australia?

Generally no. A supply is an offshore supply only if goods are brought to Australia and the supplier delivers or arranges delivery into Australia. Supplies of stock already inside Australia are outside the subdivision.

Is customs duty charged on A$1,000 or less?

The ABF says goods up to A$1,000 are generally imported without duty, taxes or charges, except tobacco, tobacco products and alcohol.

Who pays GST when a marketplace sells LVIG?

The operator of an electronic distribution platform is treated as the supplier of offshore low value goods supplies made through the platform, so it counts them in its turnover and pays the GST.