Why is there a difference in pricing between USA and Australia pricing?
The exchange rate between our two countries affect the price of these products and when the Australia Dollar is low, it cost more to import these products. We suggest adding between 30-32% on to the USA product. This can change as the exchange rate will rise and fall due to inflation, interest rates, foreign trade, countries budget deficits, trade terms between countries and economic growth.
Shipping from USA to Australia is the highest in the world to import from, this is due to the large distance and USA only allow Prioty Shipping to Australia from some states and districts. Covid19 has made supply routes in ocean freight more uncertain and driving more importers to air cargo. This has driven up prices as there limit flights and more costly these shipping prices have increased around 30-40% as supply routes have been . Suppliers from the USA change from US$80 for a 1-2 kg package. Most clients will say they have paid around US$150.00 for small orders
The high cost and uncertainty in ocean freight is driving more importers to air cargo, squeezing capacity and driving up prices. Plus, with many factories in China staying open over the Lunar New Year holiday to meet consumer demand, air cargo prices resisted their usual seasonal dip.
GST on Imports
GST on a taxable importation is payable by businesses, organisations and private individuals, whether they are registered for GST or not.
The Department of Home Affairs collects GST on taxable importations. The GST payable is 10% of the value of the taxable importation.
The value of taxable importation is the sum of:
the customs value of the goods
any customs duty payable
the amount paid or payable to transport the goods to their place of consignment in Australia
the insurance cost for that transport
GST is payable before the goods are released by Home Affairs.
Most small USA business are not registered in Australia to collect the GST so we suggest you ask if this price will include the GST payable to Australia Tax Office. The USA business will need to do all the export customs papers on your package for Department of Home Affairs, if its marked as a commerical transcation then it will be flagged for GST to paid if not paid to the USA Company. Once you package enters Australia and its deem it as a commerical transcation then these tax will need to be paid before the package will be released to the reciever.
Fees and charges
Mastercard/Visa may also charge a Foreign Currency Transcation Fee and a percent of the trancation (International Tracation Fee) of around 3-4% on top of the Conversion Exchange Rate Fee. Best to contact you bank to confirm their fees before making payments to internationl suppliers.