What is the deferred GST scheme?
If eligible, the deferred goods and services tax (DGST) scheme allows importers to defer payment of goods and services tax (GST) on all taxable imports into Australia.
The DGST scheme allows the GST payable on taxable imports to be paid via your monthly business activity statement (BAS) rather than to the Australian Border Force (ABF) at the time of importation.
Check if you're eligible for DGST
To be eligible to participate in the DGST scheme, you must:
- have an Australian business number (ABN)
- be registered for GST (you can register for GST and apply for an ABN on the one form if you don't already have an ABN)
- lodge your BAS online and pay electronically
- lodge your BAS monthly – if you are currently lodging quarterly, you must change to monthly GST reporting before you lodge your application
- ensure the goods or excise-equivalent goods are for home consumption
- if you are a member of a GST group, ensure your nominated representative is registered for the DGST scheme.
When you elect to change from quarterly to monthly lodgment, the change will not take effect until the start of the next quarter. This means you won't be eligible to defer GST on your imports until the start of the next quarter.
You may not be eligible if
- your tax return, BAS lodgments, and payments are not up to date
- for branches and joint ventures, this includes their members
- for GST groups, this includes their members and the GST Group Representative
- in the past 3 years, you or anyone relevant to the application has been convicted or penalised by a court for specific offences.
How to apply for the deferred GST scheme
If you are eligible and want to apply for the DGST scheme, complete the online Application for approval to defer GST on imported goods form (NAT 75136).
The application form allows you to check your eligibility before you apply. If you are eligible, continue your application using the same form.
To complete the form, you must save it to your desktop computer or laptop (with the latest version of Adobe Acrobat installed).
GST group members and representatives
If you are a non-representative member of a GST group, you aren't required to lodge a BAS. However, you may be eligible to apply for the DGST scheme. To be approved your nominated GST group representative must also:
- be approved in the DGST scheme, and
- lodge monthly BAS online.
GST deferred by non-reporting GST group members will be accounted for on the GST group representative's BAS.
Court convictions or penalties
You may not be eligible to participate in the DGST scheme if, in the past 3 years, you or anyone relevant to the application has been convicted or penalised by a court for offences in relation to:
- taxation requirements
- customs requirements
- the inaccurate description of goods
- trade practices
- fair trading
- defrauding of a government.
You must state in your application if you or anyone relevant to the application has been convicted or penalised by a court for any relevant offences. We may ask for additional information about the nature of the offence or penalty before making a decision about your application.
People relevant to the application include public officers, directors, office bearers, partners, and trustees of the applicant organisation.
Deferred GST obligations
If you participate in the DGST scheme, you must meet the following requirements:
- Lodge and pay your BAS online via
- Online services for business
- Standard Business Reporting (SBR)-enabled software
- your registered tax or BAS agent – lodging on your behalf using Online services for agents
- ATO online services for individuals and sole traders – using your myGov account.
- Lodge on time – if you don't lodge on time, you may be withdrawn from the DGST scheme.
- Keep up to date with payments – if you default from a payment plan, you may be withdrawn from the DGST scheme.
Adjustments to deferred GST at label 7A
If you identify an error in the pre-filled DGST amount at label 7A on your BAS and need to request an adjustment, you will first need to contact either:
- your customs broker
- the ABF.
Correcting a finalised import declaration
Your import declaration is classed as finalised when:
- the ABF releases the goods to the owner after taxes (including GST) have been paid
- you are enrolled for the DGST scheme and the GST has been deferred.
To correct any errors you will need to amend your finalised import declaration in the Integrated Cargo System.
For more information, see the following sections of the abf.gov.au website:
- Deferral of GST when importing goodsExternal Link, sections:
- How does the Integrated Cargo System handle the deferral of GST
- Which entries are captured in the deferred GST amount passed to the ATO
- Voluntary disclosuresExternal Link, section:
- Amendments to declarations within the Integrated Cargo System (ICS) and thresholds for single manual payment requests.
When to adjust your BAS
You don't need to contact us to make an adjustment on your BAS when you amend an import declaration that either:
- increases the amount of DGST
- reduces the amount of DGST in the same month the original declaration was finalised.
You must contact us when you amend an import declaration that reduces the amount of DGST for a declaration finalised in a previous month. Do this after your amendment has been finalised by the ABF. Send us your PWA request via Online Services with:
- separate requests for each BAS period (multiple adjustments can be requested within the same period)
- a copy of the latest amended version of the Import declaration or an Integrated Cargo System GST Deferral Report outlining all adjustments made
- the expected total of all adjustments
- confirmation if you have claimed the original amount of DGST as an input tax credit at label 1B when the BAS was first lodged.
For more information about deferral of GSTExternal Link and GST and other taxesExternal Link, see the ABF website.
Deferred GST calculation
If you have deferred the GST on a taxable import, and the goods will be used in your business and not for making input taxed supplies, you are able to claim a GST credit for the amount of GST that has been deferred.
On each monthly BAS, when you are entitled to a full GST credit for the taxable import, you should be claiming the full amount of the deferred GST as a credit on your BAS at label 1B (matching the pre-filled DGST amount at label 7A). The liability for DGST should always be offset on the BAS for the same month.
Example: deferred GST calculation
Sarah is a computer wholesaler who imports computers and then sells to computer retailers. She is approved for DGST on imports.
Sarah imports some computers with a cost of $20,000. The DGST on this shipment is $2,000. She makes other business purchases in Australia of $16,500, which includes a total of $1,500 GST.
Sarah makes $33,000 worth of computer sales to retailers during June. This includes $3,000 of GST collected (these computers are a combination of existing and new stock).
Sarah completes her June monthly BAS as follows:
BAS label | Dollar amount | BAS label | Dollar amount |
|---|---|---|---|
Label G1 – total sales | $33,000 | Label G11 – non-capital purchases# (Simpler BAS clients don't need to complete Label G11) | $38,500 |
Label 7A – deferred GST Prefilled by the ATO | $2,000 | - | - |
Label 1A – GST on sales | $3,000 | Label 1B – GST on purchases* | $3,500 |
Label 8A | $5,000 | Label 9 – payment (Label 8A less Label 1B) | $1,500 |
* Sarah’s GST on purchases (Label 1B) is the total of the GST she pays on her Australian purchases and her claim for her DGST amount ($2,000 + $1,500).
# Sarah’s total purchases (Label G11) are the total of her Australian purchases and the importation, including GST ($16,500 + $22,000).
End of exampleRevoking the deferred GST scheme
To continue to benefit from deferring your GST, make sure your tax obligations are up to date and meet the DGST approval requirements. If you don't, you'll no longer be part of the DGST scheme.
This means:
- the ABF will keep your goods until you pay the GST
- you'll have to register for the DGST scheme again.