What Is the Meaning of “Duty-Free” Shopping?
n Australia, duty-free means goods are exempt from Goods and Services Tax (GST) and other import duties, making them cheaper for international travellers. However, these items must be taken out of the country to qualify for tax exemption.
Whether it’s luxury goods or liquor, “duty-free” status doesn’t mean tax-free once you re-enter, allowances apply, and exceeding them may incur full duties.
Where to Find Duty-Free Shops?
These days, duty-free shops are mostly found within international airport terminals or via catalogues on aeroplanes on international flights.
It is possible to buy duty-free products at other locations up to 60 days prior to leaving Australia and must equate to over $300 AUD (including GST) at a single store or chain of stores that use the same ABN. You must bring these products on your flight, preferably wearing them or carrying them as handheld, but certain items will have to be checked in.
To get your tax rebate, you must show the original receipt and also have paid for the goods yourself, as well as your passport and international boarding pass. Find out more about the Tourist Refund Scheme (TRS) and how it works at Melbourne Airport here.
Duty-Free Allowances for Travellers Entering Australia
For general goods, including clothing, souvenirs, electronics, and gifts, the allowance is up to A$900 per adult and A$450 for travellers under 18. The alcohol allowance is 2.25 litres per adult, covering spirits, wine, and beer. Spirits typically offer the best value due to their high alcohol content and corresponding taxes. For tobacco, the limit is 25 cigarettes or 25 grams of other tobacco products per person. It’s important to note that these alcohol and tobacco limits apply strictly per individual and cannot be pooled or transferred, even among family members. Travellers may also bring in personal items, such as clothing, luggage, and cameras, valued up to A$1,000, provided these items have been owned and used for at least 12 months, in which case they are exempt from duty. Be aware: if you exceed any of the duty-free limits, you will be required to pay duty on the full quantity, not just the amount above the limit.
Rules for Duty Free Shopping when Leaving Australia
Tourist Refund Scheme (TRS) Explained
Travellers can claim back GST on goods purchased in Australia before flying internationally via the Tourist Refund Scheme (TRS). Here’s how it works:
Eligibility Requirements:
Spend at least A$300 AUD (including GST) at one store or chain with the same ABN
Purchase must be within 60 days of departure
Goods must be carried or worn on departure
To claim your TRS refund, bring:
The original tax invoice
Your passport
Your boarding pass
The goods (in original packaging if possible)
Claim at the TRS counter in your airport’s international terminal (e.g. Terminal 2 at Melbourne). Refunds are processed to credit card, Australian bank account, or cheque, no cash is given. For more specific information, check out the Australian Border Force Website.
What You Can’t Bring Back to Australia Duty-Free
Some items are restricted or prohibited regardless of duty-free status:
Food, plant, and animal products (biosecurity risk)
Unsealed liquids >100 ml in carry-on unless airport-sealed
Duty-free alcohol or tobacco exceeding limits—if you go over, full duty applies on all of that item type
Always declare everything to avoid penalties.
There Is a Limit on the Duty-Free Alcohol You Can Bring Into Australia
The legal drinking age in Australia is 18, and each adult in your party can bring 2.25 litres each, which includes spirits, wine and beer. My recommendation is that spirits are the best value for alcohol content vs space required. This is because spirits such as rum, bourbon and vodka have a higher alcohol percentage and are therefore taxed harder. Due to regular changes in the pricing, it is best to check the ATO website for the latest information on how we are taxed.
This 2.25-litre limit includes all alcohol that you bring with you, not just what is purchased at a duty-free store, so if you’ve picked up something cheap or exotic on your travels, you must include this within the 2.25-litre limit. Even if it is in your luggage. If you exceed this, you will have to pay tax on all of your alcohol, not just the extra amount.
How Does Online Duty-Free Shopping Work?
Shopping online for duty-free goods in Australia works like click & collect:
Browse online through airport duty-free websites (like Aelia or Heinemann)
Enter flight number and travel date
Collect your order after security at international departure
Benefits:
Ensure product availability
Avoid overweight luggage charges
Skip long queues
How Duty-Free Shopping Has Changed in Australia
Certain limits have changed over the years, in particular when it comes to tobacco products. I remember years ago, people seemed to bring them in by the carton.
From September 1st 2012, the limit was reduced to 50 cigarettes or 50g and again in 2017 it was reduced to 25 cigarettes or 25g, which is still the current limit.
Nowadays, duty-free shopping appears to be done in the international areas of airports. But in past decades, specialty duty-free shops were quite common in city centres. There seem to be very few left nowadays, and I’d say it’s probably because the size of our airports has increased with renovations over the years, adding more retail space.
Back in the 90s, I remember going to Duty-Free shops in Melbourne before overseas holidays. In particular, prior to our 1999 holiday to the United States of America for a family holiday, I was about 11 years old.
The shop was fancy, and there were all kinds of cool gadgets. I remember playing a Gex game on PS1 or N64 on a kiosk whilst my parents looked around at other things. I initially got my first Game Boy from here, which was a Kiwi Green Game Boy Color, plus the Pokémon Blue Version game. We had to then take everything home in a sealed plastic bag, as we were not allowed to open it until after we got through the duty-free part of the airport, sometime later.
In the meantime, before we went away, a new version of Pokémon (Yellow) was released as well as a special edition Pokémon Game Boy Color console, so we gave the other ones we’d bought previously for this trip to my younger sister. We could not open them until we got through the airport, so it was a tough few weeks being unable to enjoy these new gadgets.
I like that you can do your duty-free shopping at the airports now, but you are now at the mercy of what is available on the day, rather than planning ahead like we used to, unless you shop online. That being said, the only things I’ve bought duty-free as an adult are alcohol products.
