New TRS rules? Goods no longer included in cap?

[Daver6]

I've read through this entire thread and it's been super-helpful - thank you to everyone who contributed with opinions and experiences!

I have a specific question that I don't think has been discussed yet, interested in hearing your thoughts.

If I:
- purchase a smartphone for $1900,
- make a TRS claim on my way out of Australia (ie GST refund of $172.73)
- declare this item on my return to Australia,
- but pool my duty-free concession allowance with my partner (ie $1800),

then will my item be assessed based on the GST-inclusive purchase price (of $1900), or the ex-GST purchase price (of $1727.27)?

The ABF website, as far as I can see, doesn't really specify on this fine detail.

It's a minor difference, but could be key to whether I need to repay the entire GST refund, or just scrape in under the concession allowance!

Would be grateful for any guidance/opinions on this question...

I can't answer your question, but is a good one!

Is there also a third possibility though. They assess it based on the value of the phone. It's not a used, second hand phone so would be worth well under the purchase price.

 

[There'sOnlyOneJimmy]

I've read through this entire thread and it's been super-helpful - thank you to everyone who contributed with opinions and experiences!

I have a specific question that I don't think has been discussed yet, interested in hearing your thoughts.

If I:
- purchase a smartphone for $1900,
- make a TRS claim on my way out of Australia (ie GST refund of $172.73)
- declare this item on my return to Australia,
- but pool my duty-free concession allowance with my partner (ie $1800),

then will my item be assessed based on the GST-inclusive purchase price (of $1900), or the ex-GST purchase price (of $1727.27)?

The ABF website, as far as I can see, doesn't really specify on this fine detail.

It's a minor difference, but could be key to whether I need to repay the entire GST refund, or just scrape in under the concession allowance!

Would be grateful for any guidance/opinions on this question...

I’m not a lawyer, I don’t have any inside knowledge, don’t run with scissors, etc…
but I believe that the assessment must be based on the $1727, not the $1900.
Duty is assessed on the value of the item, which is the $1727 - it says so on your invoice…
You bought a phone for $1727, and at the same time there was a tax levied on the transaction which increased the amount payable by you to $1900.
Yes, you paid $1900 in total, but only $1727 represented the value of the item.

But all that aside… by the time you returned the phone to Australia, it’s value (as used, not new in box) is demonstrably less than $1800.

 

[SYD]

I’m not a lawyer, I don’t have any inside knowledge, don’t run with scissors, etc…
but I believe that the assessment must be based on the $1727, not the $1900.
Duty is assessed on the value of the item, which is the $1727 - it says so on your invoice…
You bought a phone for $1727, and at the same time there was a tax levied on the transaction which increased the amount payable by you to $1900.
Yes, you paid $1900 in total, but only $1727 represented the value of the item.

As per the other example up thread, I would make a point of telling the ABF person at TRS that you intend to pool your allowance - if / when they ask if you’re bringing it back and that you’ll need to declare it.

But all that aside… by the time you returned the phone to Australia, it’s value (as used, not new in box) is demonstrably less than $1800.

Make sure it’s not in the original box when you return!

 

[There'sOnlyOneJimmy]

Make sure it’s not in the original box when you return!

Agreed: always dispose of all packaging where possible.

 

[SYD]

Agreed: always dispose of all packaging where possible.

That‘s the beauty of TRS, you can leave that at home before you fly! Afterall, you could be using it for up to 2 mths before departure.

 

[cosi]

I've read through this entire thread and it's been super-helpful - thank you to everyone who contributed with opinions and experiences!

I have a specific question that I don't think has been discussed yet, interested in hearing your thoughts.

If I:
- purchase a smartphone for $1900,
- make a TRS claim on my way out of Australia (ie GST refund of $172.73)
- declare this item on my return to Australia,
- but pool my duty-free concession allowance with my partner (ie $1800),

then will my item be assessed based on the GST-inclusive purchase price (of $1900), or the ex-GST purchase price (of $1727.27)?

The ABF website, as far as I can see, doesn't really specify on this fine detail.

It's a minor difference, but could be key to whether I need to repay the entire GST refund, or just scrape in under the concession allowance!

Would be grateful for any guidance/opinions on this question...

You can call TRS 1300 555 043 or complete an online inquiry to get your answer in writing.

 

[makingit]

Thank you guys for the input, very helpful.

Re the comments on depreciation - I've heard both sides of the argument on this one. A lot of knowledgeable folk saying that it's usually customary for ABF to apply a 20% depreciation - but also some saying that TRS-claimed goods will be valued based on the purchase price. So I'd probably prefer not to rely on depreciation, to avoid ambiguity.

I would make a point of telling the ABF person at TRS that you intend to pool your allowance

Yes definitely - if asked whether the goods are returning, I will make sure to be truthful and say yes, and also state my intention to pool my duty free allowance with my wife.

You can call TRS 1300 555 043 or complete an online inquiry

I have tried calling the number but have never been able to get through. Yesterday I waited on hold for almost 10 mins before giving up. And unfortunately the online enquiry form doesn't let you submit anything once you answer "No" to the question "Have you departed Australia?". I guess it's one way to reduce the volume of online enquiries.

 

[cdp88]

Hi, we returned from our trip and brought back the mobile phone we claimed on TRS before leaving. Both times we went through BNE. I thought I would share this experience in case others are going through a similar process.

When we left Australia we received a stern lecture about how much we were claiming, that it exceeded our allowance if we brought it all back and we should declare it on our return. We did leave a fair but of what we claimed overseas but did bring back a decent amount.

When we went through customs I answered yes to the $900 and above goods duty free on the incoming passenger card. I explained it was a $1300 phone on TRS within our pooled limited of $1800. They thanked me for raising it and noted that I had complied with the requirements. They were not otherwise interested and didn’t ask to see evidence or receipts or look up our claim.

I had some other food items to declare, none of which were a problem but did have to show the dried mushrooms we bought. This was the only thing they were interested in. No one asked any questions about the TRS claim.

It was reasonably busy with flights coming in from countries where people bring food, spices, etc so perhaps they were focussing on those high risk items.

We went to Japan where the tax free scheme is so simple. Present passport at the register, purchase item tax free and details are electronically lodged and noted against your passport. Upon departing you confirm you are taking goods out when you go through the kiosk at the airport. No requirement to show goods or receipts.

 

[Andi Cee]

TRS is Tourist Refund Scheme, its purpose is to provide tourists visiting Australia the opportunity to buy applicable items tax free.

You are not a tourist in Australia, so what makes you think that you are entitled to use it?

And its been like this for a very long time.

 

[SYD]

TRS is Tourist Refund Scheme, its purpose is to provide tourists visiting Australia the opportunity to buy applicable items tax free.

You are not a tourist in Australia, so what makes you think that you are entitled to use it?

And its been like this for a very long time.

Outbound "Tourists" are eligible. Your allowance on return is still the same is if you buy stuff overseas.

 

[MattA]

TRS is Tourist Refund Scheme, its purpose is to provide tourists visiting Australia the opportunity to buy applicable items tax free.

You are not a tourist in Australia, so what makes you think that you are entitled to use it?

And its been like this for a very long time.

Because there is nothing in the legislation that underpins TRS that prohibits Australian citizens from using it, or requires you to be a "tourist".

It has been like this ever since the TRS was introduced over 20 years ago, despite periodic proposals to change that (for example see this very long report from 2019: Management of the Tourist Refund Scheme | Australian National Audit Office (ANAO) ).

The primary concern addressed in that report is of citizens returning with TRS-claimed goods exceeding their allowance and not declaring them. I don't think there's any debate in this thread about the fact that any goods you import over and above your allowance must be declared and appropriate duty paid.

Regardless of what the rules say, should Aussies be allowed to use the scheme?

He's an example: suppose I (an Australian citizen) am about to travel OS and am in the market for a new phone, the cost of which is less than my family's pooled duty free allowance.

Is it better if I:
(a) buy the phone in a local shop in Australia, claim back the GST, and bring it back after my holiday?
(b) buy the phone overseas, paying no Australian GST obviously, and bring it back after my holiday?

One of these supports local jobs, but no GST is paid in either case.

 

[cdp88]

Outbound "Tourists" are eligible. Your allowance on return is still the same is if you buy stuff overseas.

The $900 limit is far too low and I’d say many people would easily exceed it. Back in the day when they set the limit $900 may have been a lot of money. It doesn’t buy much anymore.

It has been like this ever since the TRS was introduced over 20 years ago, despite periodic proposals to change that (for example see this very long report from 2019: Management of the Tourist Refund Scheme | Australian National Audit Office (ANAO) ).

The primary concern addressed in that report is of citizens returning with TRS-claimed goods exceeding their allowance and not declaring them. I don't think there's any debate in this thread about the fact that any goods you import over and above your allowance must be declared and appropriate duty paid.

Regardless of what the rules says, should Aussie be allowed to use the scheme?

He's an example: suppose I (an Australian citizen) am about to travel OS and am in the market for a new phone, the cost of which is less than my family's pooled duty free allowance.

Is it better if I:
(a) buy the phone in a local shop in Australia, claim back the GST, and bring it back after my holiday?
(b) buy the phone overseas, paying no Australian GST obviously, and bring it back after my holiday?

One of these supports local jobs, but no GST is paid in either case.

I accept that those who can afford to travel overseas have access to a tax saving that others don’t.

I personally would be happy to forgo the TRS as an Australian citizen if they significantly increased the $900 limit for duty free or removed this entirely.

It would appear the scheme is poorly designed and not consistently enforced.

 

[oz_mark]

TRS is Tourist Refund Scheme, its purpose is to provide tourists visiting Australia the opportunity to buy applicable items tax free.

You are not a tourist in Australia, so what makes you think that you are entitled to use it?

And its been like this for a very long time.

The government specifically allowed it.

Tax Reform: Not a New Tax, A New Tax System | Treasury.gov.au

The tax reform plan set out in this document constitutes generational change in the Australian taxation system. The changes proposed in personal income tax rates and thresholds, in business tax, in assistance for families, in Commonwealth-State financial relations, in simplifying and...

treasury.gov.au

Page 92

Tourists and Australian residents going overseas will be able to recover the GST they pay on goods purchased in Australia and taken away with them when they leave.

 

[p--and--t]

Before the trip before last, I bought a new iPhone that cost me $1,265. Claimed the GST on the way out, nothing was said on the way out, I ticked no on the way back (used phone with no packaging, diminished value) and nothing was said on the way back.

Off Topic

I have found that often the TRS rebate is not worth waiting for. i.e. I get 10% off the purchase made in last 60 days. However, if there is a big sale on for the item I require at 40% off three months before I travel, the answer is obvious.

On Topic

 

[SYD]

Before the trip before last, I bought a new iPhone that cost me $1,265. Claimed the GST on the way out, nothing was said on the way out, I ticked no on the way back (used phone with no packaging, diminished value) and nothing was said on the way back.

Off Topic

I have found that often the TRS rebate is not worth waiting for. i.e. I get 10% off the purchase made in last 60 days. However, if there is a big sale on for the item I require at 40% off three months before I travel, the answer is obvious.

On Topic

The good thing with TRS v the old "sealed bag" DF is you get to use it before you go (and leave all the box and stuff at home). BTW, I guess a lot of people forget or never knew that we could *always* buy stuff DF here and take it with us and bring it back - within the allowable limits etc

SYD+1 just bought a new iPad (don't see those discounted much...) and we'll pool our allowance coming home.

Now that I have my own company/ABN, the more expensive things like phones, tablets and laptops just go via that and I get the immediate GST input in my BAS. Not to mention the EOFY instant depreciation!

 

[Ktan89]

Hey guys, can we still claim tax if we purchased the product with gift cards?
Looking to get Apple product with gift cards but I saw this on ehte TRS website:

"gift cards and vouchers; goods purchased with gift cards or vouchers are eligible for a refund subject to all other TRS requirements being met"

 

[SYD]

Hey guys, can we still claim tax if we purchased the product with gift cards?
Looking to get Apple product with gift cards but I saw this on ehte TRS website:

"gift cards and vouchers; goods purchased with gift cards or vouchers are eligible for a refund subject to all other TRS requirements being met"

If the GST receipt(s) from the one store show more than $300 spent, it should be fine.

But if say you had a $50 off voucher and bought $300 worth of stuff, then the receipt might show -$50 and a total $250 - which would be ineligible.

 

[Ktan89]

If the GST receipt(s) from the one store show more than $300 spent, it should be fine.

But if say you had a $50 off voucher and bought $300 worth of stuff, then the receipt might show -$50 and a total $250 - which would be ineligible.

Hmmm.. I haven't seen the receipt yet but I'm planning on buying a macbook air $2469 with $2500 worth of gift cards.
Or do you think I should use $2000 gift card and put the rest on CC just incase?

 

[Quickstatus]

EOFY instant depreciation

When does instant asset writeoff end?

 

[SYD]

Hmmm.. I haven't seen the receipt yet but I'm planning on buying a macbook air $2469 with $2500 worth of gift cards.
Or do you think I should use $2000 gift card and put the rest on CC just incase?

Probably not. The GCs ought to get processed the same as cash. So you would expect the bottom line to show the total.