Interesting article regarding TRS - I for one did not realise that undeclared importation of TRS-claimed goods is illegal although it seems it isn't really enforced, interested to see if others are the same
https://www.theguardian.com/australia-news/2019/sep/09/up-to…
That's not how it works, customs can reassess what they think it's worth.
They are entitled and welcome to. The value is at the point of re-entry, not the original purchase price. If you trash a camera whilst overseas, the valuation would be current market value, not the original TRS invoice price.
Totally incorrect. There's a set percentage depreciation depending on time from purchase.
You're welcome to try and argue the point, don't like your chances.
@2jzzzz: What's the set percentage depreciation for a crashed, broken quadcopter? Please find it. Clock's ticking.
I'm not going to Google stuff for you, but you keep believing that.
I know the exact answer and experienced it BTW.
@plmko: I know the exact answer and experienced it 1 1/4 times.. It's a secret. Q.E.D. F. T.W.
Lol, you can't do it but you expect every passenger claiming it to be able to. Do the stewardesses hand out the depreciation tables on the plane? :p Might weigh a bit.
They are entitled and welcome to. The value is at the point of re-entry, not the original purchase price. If you trash a camera whilst overseas, the valuation would be current market value, not the original TRS invoice price.
That's not the point of TRS.
@Bargain80: Your point? TRS stands for Tourist Refund Scheme and wasn't even designed for locals. :p The original 'point' of TRS was for tourists departing Australia. Who cares about 'points'? LOL the 'point' was not for locals to get a refund and then pay it back on re-entry.
Not even that. The moment you unseal a product and use it, it loses value. No need to "thrash" it. Look up brand new sealed iphone vs a used iphone on eBay - that's the depreciation right there.
If you saw my sister's camera after her gap year, you'd use 'trash' too. :)
Isn't it still $900 worth of goods per person you can bring back, regardless of if you claimed the TRS or purchased overseas?
I assume the actual rort is people claiming higher value items and not declaring them on the way back in?
There's no mention of this fact, when it's actually by design so that people support local retailers instead of buying overseas and sneaking the items in that way.
You poll has no option for someone who returned and did declare.
Also no option for 'did not declare because I knew the value was below the passenger concession and this is legal' (You must declare goods under TRS if their value exceeds the passenger concession of AUD900 https://www.abf.gov.au/entering-and-leaving-australia/duty-f…)
While the TRS is relevant, the bigger picture is the revenue they are missing for any undeclared goods above the $900 threshold brought into Australia – doesn’t matter if it was bought it here and claimed TRS, or someone just went wild in an electronics store in the US, anything above the threshold should be declared when coming in – if they don’t and don’t get caught then the government has missed out on revenue. Though it would be easy flag people who have made TRS claims, if they are got to enforce it, they may as well for everyone.
You poll has no option for someone who returned and did declare.
True, and now it wont let me add
Also no option for 'did not declare because I knew the value was below the passenger concession and this is legal'
Interesting, the article fails to mention that part!
Yes the article is a bit lacking
I have used it about 5 times, but always for goods under $900. Things like a jacket or shoes I bought in advance of a trip. I think there is an argument for tipping the balance in favour of supporting Australian retailers like pareneoplastic outlined below - it is cheaper to buy overseas, but more convenient to buy here, no time wasted shopping overseas. With TRS at least you can factor in the GST refund and the price difference of buying at home beforehand is reduced.
Why is it even a 'thing'? Like let's be honest, why does the government fund it, allowing travellers to claim it if under $900? Not to mention yes, it wouldn't be difficult to claim a phone/laptop on the way out of the country and then not say a word about it on the way back in.
Just seems like wasted tax dollars to me, unless you can convince me otherwise (that isn't a selfish statement of how it benefits just you!)
How i think of it is,
I could easily go overseas and by the same item at a lower price so by incentivicing spending in Aus instead of overseas at least the economy is stimulated and cash stays here.
Let's take for example, a laptop costs $800 in Aus vs. $650 AUD in the US.
If i'm travelling to the US anyway for another reason and TRS DID NOT exsist, it would make sense for me to wait and just get it once in the US.
Because TRS DOES exsist, i know at least i get $73 back, bringing the price to $727, which with the Australian consumer law perks and local warranty would be good enough for me to purchase in Aus instead of US.
Have to think it’s days are numbered tbh
cost the budget up to $557m over 20 years ?
Thats sounds negligible to me;
So how we going to fix this, Employee more people or system to track;.
For example, you hire 40 people, pay them 80k, for 20 years? will cost more.
More likely remove the access to aus citizens and allow only for internationals
So then save $$ on the gst that is currently refunded AND can have less staff given will be fewer users (being only available to actual tourists)
good point..i mean any australian buying something here should pay GST. If they're taking it overseas it doesn't matter
The GST is charged on goods and services consumed in Australia. Purchasing an iPhone in Australia and taking it overseas means that it isn’t consumed here.
@original15: Citizens or residents? Someone might be a "dual" NZ/Aus citizen living in Aus but travelling on NZ passport (hypothetically…). How do you manage this situation?
I've done it legally many times.
What good ozbargainer doesn't plan big purchases around overseas trips?
When I do travel it's with others….and we pool our allowances together.
I assume the "others" are direct family traveling with you - because they are the only ones you can "pool" with.
Are partners part of the pool?
i think they only check closely for very expensive items like rings etc
edit: I really doubt 95% OZBARGAINERS NEVER claimed TRS and2 have claimed their TRS from bikies..lol.
between $244m and $557m since July 2000.
In almost 20 years? That's hardly that much. The government just handed out $450m to their mates at the GBR foundation on a whim last year.
Is it really worth the risk of getting stuff stolen for the TRS?
I've lost more luggage (likely handler theft) than I care to remember. No way I'd risk new gear for the measly few bucks.
Agreed, and that line for the TRS booth :( It's like waiting to go through security another half dozen times.
I've never lost a bag in all my travels. Where/when did you lose yours? Is there a region or time when this is normal, or have I just been really lucky?
Biggest loss was transiting through China. Bag was last scanned departing Europe. Had a few Shimano Stellas and a Lego Disney castle in it. :(
Transiting through KL heading to Japan. Bag scanned departing Melbourne. Arrived in KL but I received the bag damaged ("zipper damage"). I lost a charger but my Rimowa was fked.
Those are the two most notable losses. No specific pattern, just shites working the baggage.
A better question would be why the duty free limit is still only $900. When I first went overseas in 2004 the limit was $900 as well.
According to the RBA, the limit should be 40% higher just to keep up with inflation: "Total change in cost is 40.2 per cent, over 14 years, at an average annual inflation rate of 2.4 per cent."
Bracket creep is in everything the government allows you to keep. Indexation only applies to charges they make. Fundamental rule of bureaucracy since federation.
That way they can all offer cuts at election time.
I pay enough income tax, and GST/Duties on my normal average life in Australia.
Enough said.
(To Customs- my real name is John Smith).
Customs is not dumb, any fool can tell you have to be a John …. Brown (JB1)
Can you remove my name pretty please.
I don't want to any issues with immigration.
Audit Office didn't do its job by also assessing how many travellers did NOT claim TRS, but we're entitled to.
For example, unable to produce goods as in luggage.
Yes, may be harder to assess but achieved via statistically valid surveys of a sufficient sample of travellers.
Swings and roundabouts…
As noted above, if you claim TRS on leaving, you don't have to declare as long as the goods are not over the allowance for you or your family group (if pooling). I have used TRS a few times, but have never had to declare anything on returning as I've always been well under the limit. So none of the options in the poll covered that…..
It's definitely enforced. I got pinged on the way back in with over $10K of camera gear.
If ATO better tracked who claimed what then they could cap individuals who abuse the system. I've never claimed for an item worth more than about $500 and that's only maybe 3 times a year.
Must be a slow news day
Whenever I claim TRS (25 times in last 3 years) 80-90% of the queue are daigou’s with chemist warehouse invoices or tourists with luxury purchase
The goods I claim TRS on are under A$900, and therefore free of GST when I return.
Not sure that the assumptions the article makes are valid.
A friend claimed back $1000 on handbags. I’m not sure if they brought them back to Australia on their return.
apparently you have to declare purchases you made while overseas, now here's the question, how do they know that you made that purchased while overseas?
Not a rort if it depreciates overseas through abuse. :) Items should be declared on re-entry, but they are now second hand if used overseas.