AUSTRALIA. As anticipated last year, the government is introducing a sharp increase in duty free allowances on wines, spirits and consumer technology, effective 1 February. The legislation had been delayed by the need for individual state approval.
The amount international travellers can spend on cameras, stereos and other electrical goods before paying any duty will rise from A$400 to A$900. The duty free alcohol allowance will move from 1.125 litres to 2.25 litres. The new alcohol limit will allow passengers to buy three bottles of wine or two bottles of spirits duty free.
But the allowance on tobacco products will remain at 250 cigarettes or 250g of cigars.
However, travelers will have to stick to their allowances as the current A$50 waiver on goods declared in excess of duty free limits is being abolished.
Travellers who exceed the liquor allowance currently only pay duty on the excess amount. Under the new system, they will have to pay duty on all their liquor purchases. Families will be able to pool their individual allowances, giving a family of four a A$3000 duty free entitlement.
In a statement, Christian Strang, Director of Business Development and Corporate Relations Asia Pacific for the Nuance Group commented: “The Nuance Group, together with special advisor Warwick Ryan of KPMG, has worked hard to ensure that the proposals, first announced in September 2003, were ratified by all states and territories. The February 1st implementation has been a long time coming. It is a credit to the perseverance of industry and government that it is finally agreed. We have also worked closely with all our airport partners to ensure that this positive outcome is reached.”
The Nuance Group Asia Pacific CEO John Moore welcomed the changes, commenting: “If Australia is to benefit fully from the new allowances, we must encourage Australians to do their duty free shopping in Australia; otherwise the benefits will go to overseas.”
Customs officers will publicise the new regulations at Australian airports in the new year. Customs Minister Chris Ellison said the new limits were sensible and timely. “This is good news for all international travellers, whether they are Australians returning home from overseas, or visitors to Australia, and it’s also a boost for the duty free industry and airports,” he said.
“The duty free concessions of family members can be pooled, and that means significant benefits to Australian families returning from overseas trips.”
Australian Duty Free Association Chief Executive Norman Beavon said: “We’ve been looking for an increase to the general allowance for a while now.”
Full list of allowance changes (effective 1 February):
• An increase in the alcohol concession from 1.125 litres to 2.25 litres.
• An increase in the general concession from A$400 to A$900 for adult travellers and from A$200 to A$450 for minors.
• The abolition of the A$50 waiver provision for all passengers, to be replaced with a requirement that duty and/or tax be payable on the full value or quantity of goods within any category where the concession limit for that category is exceeded.
• To coincide with the abolition of the waiver provision, an allowance will be made within the tobacco concession to permit the carriage of one carton (being the current concession) and one opened packet (maximum 25 sticks) without the requirement for duty or tax collection.
• The adoption of the same concession regime for crew members as for passengers, but with a general concession amount of A$450. This would replace the current regime of concessions for crew which includes access to standard passenger concessions once per year, an allowance for alcohol and tobacco every 10 days and the waiver of duty and tax liability under A$50 on any other occasion of entry.
MORE STORIES ON THE AUSTRALIAN DUTY FREE ALLOWANCES INCREASE
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Travel body welcomes boost to Australian duty free allowances – 18/09/03
Nuance boost from new Australian duty free allowances – 18/09/03
