Cash Flow, Not Customs Flow: Why Smart Importers Use GST Deferral.

When you’re managing imports, cash flow is everything. Between freight, duty, insurance, and supplier payments, it’s easy for capital to get trapped at the border. That’s why the GST Deferral Scheme is such a powerful tool for Australian importers - it keeps your cash working for you, not sitting with Customs.

What Is GST Deferral?

Normally, when your goods arrive in Australia, you’re required to pay 10% GST on the customs value of those goods before they’re released. That can be tens of thousands of dollars out the door before you’ve even sold a single unit.

Under the Deferred GST Scheme, approved importers don’t pay that GST upfront. Instead, it’s deferred to your Business Activity Statement (BAS), where it’s simultaneously reported and claimed as an input tax credit - meaning the cash impact is zero.

You still account for it, but you don’t part with the money.

⚙️ How It Works

1. You import goods.

2. Customs records the GST amount but doesn’t require payment.

3. That amount appears on your next BAS.

4. You claim it back in the same BAS cycle.

No upfront payment. No waiting for refunds. No unnecessary strain on your liquidity.

Why Businesses Love It

1. Stronger Cash Flow: You retain the funds that would’ve been tied up in import GST, giving you more flexibility to pay suppliers, invest in stock, or manage operating costs.

2. Simpler Accounting: Your GST deferral activity appears directly on your BAS, streamlining reconciliation and reducing admin headaches.

3. Faster Cargo Release: Since there’s no GST to be paid at clearance, cargo can move more quickly from terminal to warehouse - a major advantage during peak periods.

4. Scalable for Growth: As import volumes grow, so does your GST exposure. Deferral keeps your capital fluid, ensuring your working capital doesn’t tighten as your business expands.

Why Freight Forwarders Love It Too

Here’s the part many importers overlook - GST Deferral also makes you a more attractive customer for logistics providers and freight forwarders.

Typically, when GST isn’t deferred, your forwarder must pay the disbursement on your behalf at the border (duty, GST, and other customs charges), then invoice you afterward. That means they’re effectively bankrolling your import for several days or weeks - tying up their working capital and increasing risk.

When you’re on the GST Deferral Scheme, that pressure disappears. Your forwarder doesn’t need to outlay those funds, which means:

• Faster cargo release (no waiting for your GST payment).

• Smoother financial relationships.

• Preferential terms or service levels, since you’re a lower-risk client.

Simply put: forwarders love customers who don’t make them play the bank.

Real-World Example

If you import $200,000 AUD in goods, your GST would normally be $20,000. Without deferral, you pay that $20K immediately (or your forwarder pays it and bills you). With deferral, it goes straight to your BAS - offset and is cleared with no cash leaving your account.

That’s $20K kept in your business for working capital, not trapped in tax timing.

Eligibility

To qualify, you’ll need to:

• Be registered for GST.

• Lodge your BAS monthly.

• Have a solid compliance history with the ATO and ABF.

Once approved, your import declarations automatically flag for deferral - it’s a “set and forget” process that runs seamlessly in the background.

For importers, GST Deferral isn’t just a tax option - it’s a strategic advantage.

It improves liquidity, accelerates clearance, and reduces the need for your logistics partner to bankroll disbursements on your behalf.

In a volatile freight market, where every dollar and every day counts, that combination of efficiency and financial freedom is exactly what sets strong supply chains apart from the rest.

If you’re an importer looking to strengthen your financial position and build smoother relationships with your logistics partners, GST Deferral is one of the simplest wins you can implement. It’s a strategy that keeps your cash working for you, streamlines clearance, and shows freight providers that you’re a low-risk, high-efficiency customer.

To check your eligibility and get started, visit the Australian Taxation Office’s official guide to Deferred GST here.

Because when it comes to trade and transport, smart cash flow isn’t just good business - it’s good logistics.