What is the meaning of “Duty-Free” Shopping?
The definition of “duty-free” is that the goods are exempt from taxes. This makes them cheaper, as taxes or duties are removed for items intended to leave the country. So, in Australia, something that is “duty-free” is free from GST and any other taxes.
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.
Best Things To Buy Duty-Free In Australia
The best things to buy duty-free in Australia include alcohol, which is taxed very heavily and imported designer goods, such as perfume, jewellery and makeup.
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?
Similar to a “click and collect” service at any other retailer, you can order ahead from one of the airport’s duty-free services, put in your flight details, including travel date and international flight number. You will receive an email or a printable receipt and will need to take that and your passport to the collection point. This is usually beyond the security check-in at the international terminal (Terminal 2 if you’re at Melbourne Airport).
The main benefits of ordering your duty-free shopping online are that you don’t have to include it in your checked luggage, which means you could save on overweight luggage fees and also save some space.
Rules for Duty Free Shopping when Leaving Australia
When leaving Australia, the duty-free process within the international area is pretty simple and must adhere to whatever country you are bringing the goods into. It is best to check most items in your baggage, and if it comes in your carry-on on you should keep it in a sealed bag. Where things get a little more complicated is if you want to claim back GST on the Tourist Refund Scheme (TRS). This involves spending at least $300 AUD (including GST)at a single store with the same ABN and having purchased within 60 days of departure. You must keep your tax invoice, then bring it all with you, plus your passport and boarding passes, to the TRS office at the airport. You will receive the refund via credit card, Australian bank account or a mailed cheque, not cash. For more specific information, check out the Australian Border Force Website.
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.
