Deferred GST Scheme
Deferred GST Scheme is the ATO scheme under which the GST payable on taxable imports is paid through the importer's monthly business activity statement rather than to the Australian Border Force at the time of importation. Participation requires approval from the ATO before it can be used.
Why It Matters
On imported equipment, GST on the landed value is otherwise a cash cost payable at the wharf, before the asset has earned anything. Deferring it to the next monthly BAS removes that outlay from the clearance step. Customs duty is a separate charge and remains payable before the goods are released.
How It Works
- Hold an ABN and be registered for GST.
- Lodge the BAS monthly. An importer currently lodging quarterly must change to monthly GST reporting before applying, and the change takes effect from the start of the next quarter.
- Deal with the ATO and customs electronically, including electronic lodgement and payment. Deferral is not available on manually lodged entries.
- Apply to the ATO and be approved before relying on the scheme.
- Once approved, the deferred amount is reported on the BAS and included in the net liability for the month.
Common Use Cases
- Importing machinery, plant or production equipment directly from an overseas supplier
- Managing the cash cost of the value of the taxable importation at clearance
- Businesses importing on a recurring basis rather than as a one-off
Related Terms
Source: ATO, Deferred GST scheme, ato.gov.au/deferredGSTscheme (as at 26 August 2026). Eligibility and application are questions for your accountant. For how imported equipment purchases are funded, see Importing Business Equipment and Finance in Australia.