From our friends at Australian Frequent Flyer.
https://www.australianfrequentflyer.com.au/nasty-change-tour…
Looks like the TRS refund loophole used for a long time has been closed since Sep 2021. With International borders opening today I thought it would be timely to read up on the latest rules.
Short version:
If you claimed the TRS refund on the way out you need to pay the GST if you bring the item back in.
Yes I don't believe they can enforce, hence they try to stop it upfront by denying your refund request if you say you're bring the goods back to Aus.
I don’t know how good or if they’ve improved over the years, but I know they have something in place at least.
I know a mate who traveled in 2020 prior to border closure and tried to claim a wedding ring on TRS. He got the refund on his departure but when he came back in, they straight out asked him where the ring was.
Definitely traceable and enforceable… if they decide it's a priority.
They already did for high value items like the wedding ring mentioned above.
Looks like Scomo doesn't want AusFF's vote this year.
I don't think Scomo wants anyones vote this year.
After the hairwashing photo op, the welding photo op where he flashed himself, and the ukulele (????) news piece I am sure he is just trying to run this into the ground so Labor can win, and he can sit on the sidelines after and say blame Labor for the current state of Australia.
Ah damn I used to take advantage of this heaps
I've been to TRS to claim twice, once in Dec 21, and once in Feb 22. In Dec, for goods under $900 they didn't ask whether I was bringing it back. For goods over $1k they did, and I wasn't able to claim refund for those as I was bringing it back.
In Feb, I mentioned all claims were for family overseas and TRS refund went through.
If you claimed the TRS refund on the way out you need to pay the GST if you bring the item back in.
and how will they know you have the item on the way back? :)
In previous AusFF threads people have said they've been taken aside by customs after coming back to Australia. Allegedly you can get flagged in the system if the item is over the threshold.
What if you've got two passports, Australian and international. I imagine you could always just show international passport on departure to the TRS officers and then Australian on return to customs?
I would have thought they'd both be linked to you in their systems?
Otherwise, would you be questioned about where you've been living for the last X years since there's no record of you leaving the country recently?
@kiitos: There are plenty of countries that have dual and some triple citizenship.
Customs don't ask as long as people use the right passport.
@kiitos: They’re definitely linked these days. I believe they weren’t always. I’m a dual citizen and used to leave Aus on my Aus passport, no need to show my other, and enter the other country on that passport. Last time I went overseas, in 2017, I had to show both passports and the guy said something about having to have them linked in the system.
I had a resident return visa in my UK passport and they cancelled that once I got an Oz passport. So if I entered the country on my UK passport I would technically be a tourist…that could be bad.
@backpaqer: No, that's incorrect. You're an Australian citizen regardless - the Aussie passport is evidence of your citizenship. And you're not eligible for any AUstralian visa because you're a citizen! :-)
If you show your UK passport on arrival, it'll get flagged and you'll be taken off for secondary processing as it won't have a visa.And then they'll marry you up with your citizenship and your travel records will show you entered as an Aussie citizen. Pain in the arse for both them and you, but the system works it out in the end…
So just carry your Aussie passport with you… :-)
You could be flagged as NOT having left the country (departing with overseas passport) and "entering" without exiting with the AU passport.
In the past they have taken note of items, they judge what you are likely to return with and check on inbound customers.
For example, if you claim for a computer, it's reasonable that you might be purchasing a gift for a family member overseas. But it's still likely that you're bringing it back and they will take note. If you claim for a wedding ring, it's highly likley that you will bring it back, so they will note it and check when you come back into the country.
Some people get around it by getting other family members traveling with you to bring the item back in their luggage instead.
Some people get around it by getting other family members traveling with you to bring the item back in their luggage instead.
Bingo ;)
I once travelled to australia with a friend. He was in business class. So we just agreed we’d meet at luggage carousel as that would be easier.
For some reason, I was asked by customs if I was travelling with someone and when I explained, they made sure they reunited us at customs for questioning 🤷🏽 Had nothing to do with TRS.. was just for security reasons.
Moral of the story, “are you travelling with anyone today?” Is a very common first question to be asked.
inb4 negative.
But the question is, will they know?
This rule punishes honest law abiding citizens and rewards sneaky dishonest ones.
Frankly many laws do.
My other half’s car got clipped by another car. Luckily he got the registration number. Interestingly enough the car was reported stolen not long after the accident and the people found their car, a couple of days later, around the corner from them. Nothing the cops could do about it.
Gee that sounds really desperate.
Not sure about desperate but it was despicable. A good reason to get a dashboard camera.
A good reason to get a dashboard camera.
Even a dashboard camera may not help the situation you have described above. Nonetheless, having a record can always come in handy.
If your insurance cannot identify the guilty party, then you are still up for excess payment, and your premium will magically rise the following year.
@DoctorCalculon: Rather hoping the dash board camera might get an image of the driver. Worth the bluff anyway.
Go and torch it
Don't be honest, be smart.
No good deed goes unpunished
Are they checking serial numbers of returning goods?
I was about to say this, ex colleague of mine used to buy heaps of luxury goods like Chanel handbags or high end tech items like MBP/Iphones, all gift wrapped then just unwrap and bring them back saying they were a different item if/when asked.
I would think that any claim would include a receipt with serial numbers? It wouldn’t be that hard to do the check if they wanted to. Particularly if they start seeing a pattern of travel.
Oh no you may have to pay your fair share of taxes.
Boo bloody hoo.
The fair share is to find loopholes and avoid taxes as much as possible.
TLDR?
We pay all the taxes that we are legally required to.
As the article points out a good portion of people will just make the entire purchase overseas instead of in Australia if they can't use TRS, so seems short-sighted really, more money will leave the country.
Honestly can't see it happening that way at all, it is clutching at straws, seems most people do it with tech items, a phone or a laptop, camera maybe. Things they will want to use on holiday, who is going to want to spend part of their holiday shopping for an item they can get at home and if it is a tech item - end up with an international charger and have no local warranty coverage?
Maybe people will defer other purchases to overseas but I can't see this being a big drain of money being spent overseas when it has really just been used as a loop hole to make purchases people were going to make a little bit cheaper.
Also, it’s not always cheaper overseas.
@smpantsonfire: Actually it depends on what it is. With the Australian dollar you have to take into account the conversion amount and fees.
Says who? Gerry Harvey?
Customs don't have the manpower to police every item.
Just gift the items among family, friends and don't go as a group. Done.
Family with the same surname might ring alarm bells. Normally I don’t go on holidays with my extended family or friends.
Thanks for the heads up.
Looks like the TRS refund loophole used for a long time has been closed
I don't believe this was ever a loophole. If the goods were re-entering the country, they weren't eligible for a GST refund in the first place, as I understand it. This is just enforcement of existing rules around GST.
if it fell under your $900 (concessional duty Adult) it was allowed back in without having to pay GST.
You used to be able to pool your duty between parties.
The loop hole now would be to gift the goods to another member in your party but now the total value must not exceed $900.
Until they catch on and close that loophole as well.
Sometimes officers will ask you if you are travelling with anyone else…
Yeah, there was an episode of Border Patrol where someone entering the country is wearing an item (rolex? earrings?) and it turns out they had claimed the TRS on it, so they had to pay the GST back.
Did you read the article
But around September last year, the Australian government changed the rules. If you return to Australia with items you’ve previously claimed a GST refund on, you must now declare these and repay the tax in full. This includes items worth less than $900.
The Australian Border Force (ABF) website was quietly updated around September 2021, but the change was not well-publicised. The new rule has recently caught some travellers leaving the country by surprise.
The way you get around this is simply to give the goods to another person travelling as a "gift" to them and then it comes under their exemption, or you just post the goods back to yourself. Or you just don't report it and accept any potential consequences.
Or the actual next level solution is to avoid all this hassle and just claim them for business use where appropriate (computers etc) and get the GST back legally according to the amount used for business.
Ah, of course, claim on the businesses we all have!
whydidntithinkofthat.jpg
or you just post the goods back to yourself.
That does raise the question of how customs would be treating, say, a laptop computer sent by you to yourself, and how they might apply taxes to it.
Doesn't really make sense, but that's no different to many other rules. Easiest way around it is to hand the item to a travelling companion.
Since they're removing the $450/$900 limits, they might as well close all inbound duty free shops too!
They aren't removing the $450/$900 limits for duty free, only on the items that are brought back and had the GST refund claimed on previously.
They aren't removing the $450/$900 limits for duty free
For those items, they are. That's the bit that doesn't make sense:
Someone who buys a $500 pair of headphones, claims the GST on the way out, then brings it back has to pay the GST again. Someone that buys the same headphones at the duty free place (yes, it'll probably be more expensive) on the way in (or somewhere else overseas) doesn't have to pay duties/taxes.
So they are worried about a maximum $90 GST refund (per person), but not the approximately $80 excise on spirits when purchasing the full allowance of 2.25L at the inbound duty free store? Hmm..
Sorry, I mean they aren't removing the $450/$900 limits for duty free stores.
So it won't affect the duty free stores. This may make duty free stores more competitive for the consumer.
Husband claims TRS, wife brings it back. Problem solved.
Haha that's what I was thinking - and walk through immigration/customs separately as well so you aren't stopped together.
Our story every time we travel.
One of the first questions customs officers ask is "are you traveling with anyone?". If you've been flagged for having claimed an high value item on the way out, then likely those travelling with you were also flagged. They can see who booked tickets at the same time or purchased from the same card. It's often how they catch drug smugglers, because two people will have had tickets purchased by the same friend.
Not saying they will catch everyone or even that many. But particularly if you have high value items like wedding rings, they already flag that for checking.
No one asks you anything anymore at the eGate. On the customs side there is just a dude collecting declaration cards. I've never been stopped once in 15 years.
Or a random stranger ? assuming they are trust worthy. like those videos on youtube where women claiming to be with her husband, and brings a random dude from toilets, child shocked to meet his 1 minute old step dad. HAHA
I'd hope that anyone with half a brain would know not to carry anything for any strangers through customs! Things could end real badly. lol
You're saying you wouldn't carry a boogie board or some headphones through customs for someone else?
I'm more than happy to carry strangers private 🔑 through customs.
Of course just kidding lol!
Otherwise who knows one might actually start paying taxes with Apple gift cards, aka become one like Cassie Cassandra
Lame changes Booo!
If I remember correctly, the whole point the Tourist Refund Scheme (TRS) was offered widely to all Australians was due to lobbying by the likes of Harvey Norman and Retail Association.
They successfully argued that if the Government did not offer this "Tourist" scheme to all Australians then when the Australian undertakes travel overseas they have an incentive to purchases such goods overseas where they can claim GST free tourist purchases under $900.
Although, far less of us are travelling these days and most of us are spending that travel money at HN anyway, so doubt HN needs to lobby against this new rule now.
So now we are incentivised to purchase the item overseas, claim the VAT/GST through the foreign countries' tourist refund scheme and import it into Australia duty free (assuming it's under the $900 per person limit)…
Hah jokes on them I'll be away for at least two years so my laptop will be depreciated into oblivion.
The value is based on the receipt for which you claimed the refund.
My meaning is that I won't even bring it back or have upgraded.
Then I don't see how the 'jokes on them' if you are just exporting the item.
Based on receipt price and then depreciation applied.
Depreciation is not factored in when claiming the TRS gst refund. However, when calculating value of the goods on reentry depreciation is applied. To goods that depreciation is applicable anyway.
Will you still be paying Australian taxes while you are overseas?
It's tax-free income.
Even if they remain an Australian resident?
@rektrading: Exactly. You can't just say "it's tax-free income" because a person is earning money overseas.
@rektrading: And Australia isn't one of them. Since this is an Australian website, and 99% of posters would be Australian, then Australian tax laws apply.
Hah jokes on them I'll be away for at least two years so my laptop will be depreciated into oblivion.
https://www.ozbargain.com.au/comment/11792412/redir
They will be living in another country for two years. Australian tax laws don't apply during that time.
I'll be paying local taxes, yeah.
Interesting because the Department of Home Affairs/ATO jointly administer the TRS scheme.
On the way back into Australia you usually meet Border Force and Quarantine, but not Dept of Home affairs.
Unless they improve the "track and trace" to monitor outgoing and incoming tax claimants, I don't see how this will work
Border Force is a part of Home Affairs. And the TRS counter is usually staffed by Border Force officers. ;-)
Disappointing. Probably very difficult for them to enforce though, I'm quite sure their data matching isn't yet to the point where they check you outgoing refund history when you go through customs on the way back in.