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Australia Shipping, Transport & Logistics Tax Guide

Australian shipping, transport and logistics taxation. The guide covers: the fuel tax credits for the transport operators — the 'transport operators' (the 'trucking companies', the 'logistics companies', the 'delivery services', the 'bus operators') can claim the 'fuel tax credits (the 'FTC')' for the 'fuel used in the eligible activities' — the 'heavy vehicles with the GVM of 4.5 tonnes or more on the public roads' (the 'net fuel tax credit rate' — the 'excise rate minus the road user charge') and the 'off-road activities' (the 'fuel used in the 'plant and equipment' at the 'warehouse' and the 'depot') — see the separate Fuel Tax Credits Guide for the 'detailed rates and the conditions'; the GST on the freight and the logistics services — the 'freight and the logistics services' (the 'transport of the goods', the 'warehousing', the 'distribution', the 'storage', the 'handling', the 'packaging', the 'delivery') are subject to the 'GST at 10%'; the 'transport operator' (the 'trucking company', the 'shipping company', the 'freight forwarder') must 'register for the GST' if the 'GST turnover' is $75,000 or more; the 'GST-free supplies in the transport industry' include: (i) the 'international transport of the goods' (the 'freight from Australia to the overseas destination' — the 'international freight' is 'GST-free'), (ii) the 'transport of the goods from the customs place to the Australian warehouse' (the 'first leg of the import' — the 'international transport' may be 'GST-free'), (iii) the 'supply of the commercial accommodation on the ship' (the 'maritime crew accommodation'); the international shipping exemptions — the 'international shipping' is 'exempt from the Australian income tax' under the 'shipping tax concession' (the 'shipping exemption' under the 'Section 51-100 of the ITAA 1997'); the 'shipping exemption' applies to the 'qualifying shipping activities' (the 'international shipping of the goods and the passengers') by the 'qualifying shipping entities' (the 'Australian registered ships' or the 'foreign ships' under the 'shipping exemption' — the 'shipping reform' (the '21st Century Maritime Fellowships' and the 'International Shipping Reform') — the 'shipping income' may be 'exempt from the Australian income tax' if the 'shipping operator elects for the 'tonnage tax' or the 'shipping tax exemption''; the 'tonnage tax' is the 'notional tax based on the 'net tonnage of the ship'' (the 'tonnage tax rate' is approximately $0.97 per net ton for the 'first 1,000 tons' and the '$0.89 per net ton' for the 'subsequent tons'); the customs duties and the import processing — the 'customs duties' are 'imposed on the imported goods' under the 'Customs Act 1901' and the 'Customs Tariff Act 1995'; the 'customs duty rates' vary by the 'goods classification' (the 'HS code' — the 'Harmonized System code'); the 'customs duty' is calculated on the 'customs value' (the 'transaction value' of the 'goods' plus the 'freight and the insurance' — the 'CIF value'); the 'customs duty' is 'payable at the customs clearance'; the 'import processing charge (the 'IPC')' is the 'additional charge' for the 'processing of the import declaration'; the 'IPC' is calculated based on the 'customs value' (the 'IPC rate' is approximately $100 to $200 per declaration).

Fuel Tax Credits for Transport

  • Heavy vehicles (road): The 'trucks with the GVM of 4.5 tonnes or more' are eligible for the 'net fuel tax credit rate' (the 'excise rate minus the road user charge').
  • Off-road activities: The 'fuel used in the 'warehouse equipment' (the 'forklifts', the 'cranes', the 'generators') is eligible for the 'full fuel tax credit rate'.

For the fuel tax credit rates and the eligible fuels, see our Fuel Tax Credits Guide →.

GST on Freight & Logistics

  • GST at 10%: The 'freight, the warehousing, the distribution, and the delivery services' are subject to the 'GST at 10%'.
  • GST-free international freight: The 'international transport of the goods from Australia to the overseas destination' is 'GST-free'.
  • Input tax credits: The 'transport operator' can claim the 'input tax credits' on the 'business expenses' (the 'fuel', the 'vehicle costs', the 'rent').

For the GST registration and the BAS lodgement, see our GST Guide →.

International Shipping & Customs

  • Shipping tax exemption: The 'qualifying international shipping income' is 'exempt from the Australian income tax'. The 'tonnage tax' is the 'alternative tax' for the 'shipping operators'.
  • Customs duties: The 'customs duty' is 'payable on the imported goods' at the 'customs clearance'. The 'duty rate' is based on the 'HS code' of the 'goods'.

For the customs and the import rules, see the Australian Border Force website (www.abf.gov.au).