Your container has landed, the paperwork is lodged, and the goods are ready to leave the wharf. Then the bill arrives: customs duty, plus GST on the full import value, payable before the Australian Border Force (ABF) will release a thing. You will probably claim that GST back on your next activity statement, but until then it is your money sitting with the government. What if you never had to pay it at the border in the first place?
That is the job of the GST deferral scheme. Run by the Australian Taxation Office (ATO), it lets approved importers move the GST on their imports off the border invoice and onto their monthly business activity statement (BAS), where it is usually offset by a GST credit in the same return. For a business that imports regularly, it can take a recurring cash-flow squeeze out of every shipment.
It is not automatic, though, and it is not a tax cut. You have to apply, you have to report monthly, your customs broker has to declare your goods the right way, and a late BAS can get you removed. This guide explains how deferred GST works from the wharf to the BAS, who is eligible, what it does not cover, how to apply, and the mistakes that quietly cancel the benefit.
The GST deferral scheme (also called the deferred GST or DGST scheme) is an ATO scheme that lets eligible, GST-registered importers who lodge their BAS monthly and online defer the GST on taxable imports. Instead of paying GST to the ABF before the goods are released, you report it on your next monthly BAS. Customs duty and other border charges are still paid at import.
The GST deferral scheme is an ATO arrangement that allows approved importers to defer payment of GST on taxable importations until their next monthly business activity statement, instead of paying it to the Australian Border Force at the border. The ATO calls it the deferred goods and services tax (DGST) scheme, and the ABF applies it automatically through the Integrated Cargo System once your ABN is approved.
The point is timing. Without deferral, GST is a cash outlay on every shipment that you only recover later, through your BAS. With deferral, the liability and the credit can land on the same BAS, so the money never has to leave your account at the border.
According to the ATO’s deferred GST scheme page, the scheme lets eligible importers pay the GST on their taxable imports through their monthly BAS rather than to the ABF at importation.
To see what deferral changes, it helps to understand the default process first.
Most goods brought into Australia are what the ATO calls taxable importations. Under the ATO’s guidance on GST and imported goods, GST is 10% of the value of the taxable importation, which is the sum of:
Because duty sits inside that value, GST is charged on top of duty. That is why a correct duty calculation and tariff classification matter for your GST bill as well as your duty bill. A valid preference claim under one of Australia’s free trade agreements lowers the duty, and with it the GST base.
Without deferral, GST is due at the same time and in the same way as customs duty, before the goods are released, as part of the normal customs clearance process. A GST-registered business importing for its enterprise can then claim a GST credit on its activity statement, using the finalised import declaration as evidence. The tax is recovered, but only after you have funded it.
| Stage | Without deferral | With the GST deferral scheme |
| Import declaration lodged | Duty and GST assessed | Duty assessed; GST recorded as deferred |
| Before release | Duty and GST paid to the ABF | Duty and other border charges paid; GST not paid |
| Goods released | After all charges are cleared | After duty and charges are cleared |
| Your BAS | GST credit claimed for GST already paid | Deferred GST pre-filled as a liability; GST credit claimed against it |
| Cash effect | GST funded upfront, recovered later | No GST outlay at the border; liability and credit usually offset |
| Tip: Deferral moves the GST, but the GST value still depends on accurate declarations. If the customs value, freight or insurance figures are wrong, the deferred amount on your BAS will be wrong too. |
Here is the full path from the wharf to your BAS once you are approved.
| BAS label | What goes there | Who fills it |
| 7A | Deferred GST on imports finalised in the period | Pre-filled by the ATO from ABF data |
| 1B | GST on purchases, including the credit for deferred import GST where you are entitled to it | You or your BAS agent |
| G11 | Non-capital purchases, including the GST-inclusive value of the imports | You or your BAS agent |
| 9 | Net amount payable or refundable | Calculated from the return |
The ATO’s guidance says that when you are entitled to a full GST credit for a taxable importation, you claim the full deferred amount at 1B and it should match the pre-filled 7A figure. The liability and the credit are then offset in the same month’s BAS. If only part of the import is creditable, for example goods partly for private use or for making input-taxed sales, you can claim only that part, and the rest is a real amount payable with that BAS.
This is the most misunderstood part of the scheme, and many guides skip it. The ABF is explicit that the deferred GST scheme covers GST only, and that customs duty must still be paid at the time of importation.
| Charge | Deferred under the GST deferral scheme? | Notes |
| GST on taxable importations | Yes | Automatically, on every eligible declaration |
| Customs duty | No | Paid before release |
| Anti-dumping and countervailing duty | No | Paid before release |
| Wine Equalisation Tax (WET) | No | Quoting your ABN may apply where you meet one of the grounds for quoting |
| Luxury Car Tax (LCT) | No | As above; relevant if you import a motor vehicle |
| Import Processing Charge and other border charges | No | Paid before release |
If you want duty deferred as well, there is a separate route. The ABF’s Duty Deferral Plus benefit lets accredited Trusted Traders who already defer GST roll duty and certain other border charges into one consolidated monthly payment. That requires accreditation under the Australian Trusted Trader programme, which is a much bigger commitment than joining the GST scheme.
Import GST deferral eligibility is set by the ATO, and it rests on two things: how you report GST, and how well you have kept up with your tax obligations.
| Requirement | What it means in practice |
| Hold an ABN | The ABN you apply with is the one your broker must quote on import declarations |
| Be registered for GST | You can register for GST and apply for an ABN on the same form |
| Lodge your BAS monthly | Quarterly lodgers must switch first (see below) |
| Lodge and pay electronically | Through online services for business, SBR-enabled software, or a registered tax or BAS agent |
| Import goods for home consumption | Goods must be entering the Australian market, not just passing through |
| Keep your tax affairs up to date | Returns, BAS lodgements and payments must be current |
| Deal electronically with the ABF | Through a licensed customs broker or your own ICS access |
The ATO also says you may not be eligible if, in the past 3 years, you or a relevant person (such as a director, public officer, partner or trustee) has been convicted or penalised by a court for certain offences, including tax, customs, fair trading and inaccurate descriptions of goods. These matters have to be disclosed in your application.
Many small and medium importers report GST quarterly, which rules them out until they change. The ATO notes that a switch to monthly reporting takes effect from the start of the next quarter, so deferral is not available until then. Under the ATO’s monthly GST reporting rules, businesses with a GST turnover of $20 million or more must already report monthly, while smaller businesses can choose to.
Monthly reporting means twelve BAS lodgements a year instead of four. Talk to your accountant or BAS agent about the extra workload before you commit, because missing a deadline is the fastest way out of the scheme.
If your business is part of a GST group, the ABF explains that not every member has to join. But any member that wants to defer must apply, and the group’s nominated representative must be approved too. Each member quotes its own ABN on its declarations, and the ATO consolidates the deferred amounts onto the representative’s BAS.
Businesses with GST branches that lodge separate activity statements work differently. Each importing branch applies and is approved individually, then quotes its ABN plus GST branch number on the import declaration.
Even once you are approved for the GST deferral scheme, some importations fall outside it. The ABF lists these exclusions:
Goods entered for home consumption from a licensed warehouse are covered, as are amended import declarations where the original GST was deferred. And some imports have no GST to defer at all: the ATO describes non-taxable importations, such as goods that would be GST-free if supplied in Australia and goods covered by certain customs duty concessions.
The application goes to the ATO, not the ABF. The ATO’s application for approval to defer GST on imported goods page sets out the process.
| Note: Incorrectly completed forms can slow processing, so check that the ABN, legal name and GST registration details match your ATO records exactly before you lodge. |
For most regular importers, yes. The GST deferral scheme pays off when GST is a recurring outlay. But the benefit is the cash you no longer have to fund, and the cost is the discipline of monthly reporting. Weigh both honestly.
| Your situation | How much deferral is likely to help |
| You import frequently, such as several containers a month | High: GST is a recurring outlay on every shipment |
| You hold large stock or turn inventory slowly | High: less working capital is tied up between landing and sale |
| You already report GST monthly and online | High: you meet the hardest condition already |
| Your imports are fully for business use | High: the 7A liability and 1B credit usually offset |
| You import once or twice a year | Low: the monthly reporting burden may outweigh the timing gain |
| Your BAS lodgements are often late | Risky: late lodgement or payment can lead to removal |
| Your imports are mainly for input-taxed sales or private use | Limited: the GST you cannot claim is still payable with the BAS |
| Example (hypothetical): A Perth homewares wholesaler brings in a few FCL containers from China each month through Fremantle, and reports GST quarterly. Without deferral, GST is paid with duty on every container before release, and the credit only comes back after the quarterly BAS is processed, so a full quarter of import GST can be tied up at once. After switching to monthly reporting and joining the GST deferral scheme, the wholesaler pays only duty and border charges at the wharf. Each month’s deferred GST appears at 7A, the matching credit goes in at 1B, and the import GST nets out in the same return. Nothing about the duty changes, and the wholesaler’s broker must quote the business’s ABN on every declaration for this to work. |
The ATO approves you, but your customs broker is the one who makes deferral happen on each shipment. Four things sit with them.
Quoting the right owner. The ICS defers GST only when the declaration quotes an ABN approved for deferral. The ATO’s guidance on claiming GST credits for goods you import adds that only the importer can claim the credit, and that facilitators such as customs brokers and freight forwarders are generally not importers. If a third party is named as owner without a genuine agency arrangement, you lose both the deferral and the credit.
Lodging electronically. The scheme only works on electronically lodged declarations. Using a licensed customs broker meets that condition without you needing your own ICS access.
Getting the values right. Since GST is calculated on customs value, duty, transport and insurance, the declared Incoterms, freight and insurance figures flow straight into your deferred amount. Avoiding the document errors that cause customs delays also keeps your BAS figures clean.
Supplying the reconciliation data. The ABF offers a GST Deferral Report through the ICS, which breaks down the deferred amount behind your 7A figure. You can get it yourself with ICS access, or ask your broker. If you use more than one broker, you need a report from each to see the full picture.
Admission is not permanent. The ABF says owners may be removed if they fail to lodge or pay on time, are subject to administrative penalties under laws the Tax Commissioner administers, or stop meeting the eligibility criteria. The ATO adds that defaulting on a payment plan can also lead to withdrawal.
If you are removed, the ABF will hold your goods until GST is paid at the border, and you will need to reapply. According to the ABF, readmission may require you to obtain a bank guarantee covering future GST on imported goods. That is a good reason to treat the monthly BAS deadline as seriously as a vessel cut-off.
The deferred GST scheme is an ATO scheme that lets approved importers defer the GST on taxable imports from the border to their next monthly BAS. Instead of paying GST to the Australian Border Force before release, the amount is pre-filled at label 7A and, where the goods are fully creditable, offset by a GST credit at label 1B.
You need an ABN, GST registration, monthly BAS lodgement, and electronic lodgement and payment. Your tax affairs must be up to date, and you may be ineligible if you or a relevant person was convicted or penalised for certain offences in the past 3 years. The goods must be imported for home consumption.
No. The scheme covers GST only. Customs duty, anti-dumping duty, WET, LCT and other border charges are still paid before the goods are released. Accredited Australian Trusted Traders who defer GST can apply to defer duty and certain charges through the ABF’s Duty Deferral Plus benefit.
No. Once your ABN is approved, the ABF’s Integrated Cargo System automatically defers the GST on every eligible import declaration that quotes your ABN as owner. You cannot elect to defer some declarations and pay GST upfront on others.
Yes. Monthly BAS reporting is a condition of the scheme. If you report quarterly, you must change to monthly first, and the ATO notes that the change takes effect from the start of the next quarter, so deferral is not available until then.
Complete the ATO’s application for approval to defer GST on imported goods, a PDF form that includes an eligibility check. Lodge it through online services for business by secure mail under the GST topic, or ask a registered tax or BAS agent to lodge it for you through practice mail.
Yes. GST on imports is calculated on the value of the taxable importation, which includes the customs value, customs duty, transport and insurance to Australia, and any wine tax. So the duty amount is part of the base on which GST is worked out, whether you pay that GST at the border or defer it.
The application is made to the ATO on behalf of the importing business, and a registered tax or BAS agent can lodge it for you. Your customs broker’s job is different: quoting your ABN on each import declaration so the ICS applies the deferral, and supplying your GST Deferral Report.
Late lodgement or payment can lead to removal from the scheme. If you are removed, your goods will be held until GST is paid at the border, and readmission may require a bank guarantee for future import GST. Keeping lodgements on time protects the cash-flow benefit.
Compare the pre-filled label 7A amount with the GST Deferral Report from the ICS, which breaks the total down by declaration. You can download it with your own ICS access or request it from each customs broker you use, then match it to your import records before lodging.
Not when they are cleared on a self-assessed clearance (SAC) declaration, which the ABF excludes from the scheme. Many low-value goods are also non-taxable importations at the border. Deferral applies to goods entered for home consumption on a full electronic import declaration.
The GST deferral scheme does not lower your tax bill, but it can stop GST from draining your cash every time a container lands. The approval comes from the ATO. The day-to-day benefit depends on getting the details right: monthly reporting, on-time lodgement, accurate declarations, and your ABN quoted as owner on every entry.
Omega Cargo’s team of licensed customs brokers lodges import declarations through the ICS and provides advice on duty, taxes and GST implications for imports as part of its customs and quarantine clearance service. If you are planning to join the scheme or want to check your entries are set up for it, Request a customs clearance quote and have your ABN, recent commercial invoices and the ports you import through ready. Prefer to talk it through first? Contact the Omega Cargo team.
This article is general information, not tax advice. Scheme rules can change, so confirm current requirements with the ATO, the Australian Border Force or your tax adviser before relying on them.
