Australia is a hotbed of tourism and people all over the world come to enjoy the beaches, the outback, and the coral reefs that Australia has to offer. The other thing that Australia has to offer is taxes. Like many countries around the world, Australia has a Value Added Tax (VAT) and, like a lot of countries, this VAT can reach up to 17.5%! An awful lot to pay if you’re just visiting.
Fortunately, Australia has a Tourist Refund Scheme (TRS) which allows for visitors to its beautiful country to receive some of that VAT back…provided they follow the proper steps. Luckily, the steps are pretty easy:
- Make sure you meet the requirements. To claim an Australian tax refund as a tourist, you have to make sure that you spend $300 (or more, including tax) in a single store, 30 days before departure. You also have to make sure you get a single tax invoice for all those goods. Your goods also need to be of a certain type (no food, but wine counts). You can also use the goods (like cameras) before leaving the country, which differs from a lot of places.
- Wear or carry those goods at the airport. You have to be able to present any goods to custom officials at the airport if you want to get an Australian tax refund. This can be a bit of a pain in the neck, but if you bought a $1000 leather coat or a $600 bottle of wine while visiting, the money back will be well worth it.
- Present the goods for inspection as needed. If you qualify for an Australian tax refund, customs officials will probably have to look at your goods. This inspection can take a bit of time, so plan for it. Also have everything ready for them. Make sure your goods are there, your single tax invoice (or receipt) is on hand, and that you also have your passport and international boarding pass available. All these forms of identification as essential to claiming your refund.
- Make your claims before you leave. You cannot get your Australian tax refund on your goods if you fly out of the country before you make it (though this is different for students you lived in Australia for a period of time). Claims for an Australian tax refund are available up to 30 minutes before your flight departs, so that’s plenty of time to fill out that form. Note that the refund amount is simply the cost of the items divided by 11 for regular goods and 14.5 for wine. So even before you leave you can know how much you will be getting back.
- Wait for the Australian tax refund to appear. Now that you’ve done all the paperwork and inspections, you can wait for the refund to arrive. You will either get paid by cheque, credit to an Australian bank account, or a credit card. It usually takes 15 days to appear, so if it has taken longer, contact Australian customs officials.
The Tourist Refund Scheme is a remarkably easy process if you go in with some knowledge and plan a little. So when you’re visiting Australia next, don’t be afraid to splurge on some luxury items–after all, you’re going to be getting a refund!