{"id":"F2018L00725","name":"Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018","slug":"goods-and-services-tax-foreign-currency-customs-value-of-low-value-goods-determination-2018","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":100100,"registerId":"commonwealth-F2018L00725-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018","content":"Legislative Instrument\n\nGoods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018\n\nI, Timothy Dyce, Deputy Commissioner of Taxation, make this Determination under subsection 84-79(5) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).\n\nTimothy Dyce\n\nDeputy Commissioner of Taxation\n\nDated: 30 May 2018\n\n1. Name of determination\n\nThis determination is the Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018.\n\n2. Commencement\n\nThis determination commences on 1 July 2018.\n\n3. Determination (who is covered by this determination)\n\nThis determination applies to an entity that uses the method in section 4 of this determination to work out the customs value of goods under subsection 84-79(4) of the GST Act.\n\n4. Method for converting an amount to Australian currency\n\nYou can convert an amount expressed in foreign currency to Australian currency using the following method:\n\n```html\n

amount expressed in a foreign currency

x

1

your particular exchange rate at the conversion time

\n```\n\nYou must use your particular exchange rate consistently.\n\n5. Definitions\n\nanother central bank is a central bank or monetary authority outside the indirect tax zone that exercises functions that correspond with, or are similar to, the Reserve Bank of Australia.\n\nconversion time is the time when the consideration for the supply was first agreed.\n\nexchange rate means the unit of foreign currency per Australian dollar, which has been published within 7 calendar days of the conversion time. If a rate other than the most recently published rate is used, the practice for sourcing the rate must be consistent.\n\nforeign currency means a currency other than Australian currency.\n\nforeign exchange data vendor means an organisation that provides foreign currency data to financial firms, traders and investors.\n\nforeign exchange organisation means an organisation that provides exchange rates publicly.\n\nmid-market rate means a rate based on the midpoint between the bid and ask rates for the Australian dollar. This includes mid-market rates between the Australian dollar and a foreign currency calculated by reference to a third currency, such as the United States dollar.\n\n RBA rate means the foreign exchange rate specified by the Reserve Bank of Australia.\n\nReserve Bank of Australia means the body corporate continued in existence under the Reserve Bank Act 1959.\n\nyour particular exchange rate is one of the following:\n\n (a) the RBA rate, or a reference rate published by another central bank, or\n (b) an exchange rate that is consistently higher than the RBA rate published by a foreign exchange organisation, or\n (c) a mid-market rate of a foreign exchange organisation or a foreign exchange data vendor.\n\n6. All other expressions in this determination have the same meaning as in the GST Act.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This Determination prescribes a conversion method and acceptable rate sources for working out customs value of low‑value goods; it does not expand who is liable for GST. It applies only to entities that use this method under subsection 84‑79(4) and retains existing GST definitions (s.3; s.6)."},"complexity_factors":["Straightforward arithmetic conversion: multiply the foreign currency amount by 'your particular exchange rate' at conversion time (s.4).","Multiple acceptable rate sources: RBA rate, reference rates from other central banks, rates from foreign exchange organisations, or mid‑market rates from data vendors (s.5).","Timing constraint: the exchange rate must have been published within 7 calendar days of the conversion time; if using an older rate the practice for sourcing must be consistent (s.5).","Consistency requirement: an entity must use its chosen 'particular exchange rate' consistently, creating a recordkeeping and compliance burden to show consistent application (s.4; s.5).","Discretion/ambiguity: terms like 'consistently higher than the RBA rate' and 'practice for sourcing must be consistent' require judgement and invite administrative interpretation (s.5).","Definition detail: 'mid‑market rate' can be calculated via a third currency (e.g. via USD), which may complicate sourcing and comparison (s.5).","Limited scope: the instrument applies only to entities that choose to use this conversion method for customs valuation under subsection 84‑79(4) of the GST Act (s.3).","Administrative formality: commencement date is prescribed and ordinary GST definitions are preserved (s.2; s.6)."],"plain_english_summary":"Specifies how to convert foreign‑currency amounts to Australian dollars for calculating the customs value of low‑value imported goods for GST: multiply the foreign amount by a single \"particular exchange rate\" at the time the price was first agreed, and use that rate consistently (s.4–5).\n\nAffects importers, online sellers and businesses that report GST on low‑value imports by setting acceptable rate sources, publication‑timing rules and a recordkeeping obligation; the chosen rate directly changes GST payable and creates sourcing and consistency compliance requirements (s.3–5)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The Determination remains tightly focused on its original purpose: providing a foreign currency conversion methodology for the specific context of low-value goods GST. It has not expanded beyond this narrow technical function."},"complexity_factors":["Short document (6 sections, approximately 500 words)","Single, straightforward mathematical formula in section 4","Only 8 defined terms in section 5, all with clear, practical definitions","No cross-references to other legislation beyond the parent GST Act (section 6)","No conditional logic, exceptions, or nested provisions","Linear structure: name, commencement, coverage, method, definitions, interpretation"],"plain_english_summary":"This Determination sets a clear method for converting foreign‑currency prices into Australian dollars to calculate GST on low‑value imports. It applies to overseas sellers, online marketplaces, and anyone calculating customs value under the GST Act.\n\nIt identifies acceptable sources of exchange rates, requires consistent choice of a rate source, and sets a timing rule for which published rate to use so GST on low‑value goods is calculated uniformly and predictably."}},"importantCases":[],"_links":{"self":"/api/acts/goods-and-services-tax-foreign-currency-customs-value-of-low-value-goods-determination-2018","history":"/api/acts/goods-and-services-tax-foreign-currency-customs-value-of-low-value-goods-determination-2018/history","analysis":"/api/acts/goods-and-services-tax-foreign-currency-customs-value-of-low-value-goods-determination-2018/analysis","conflicts":"/api/acts/goods-and-services-tax-foreign-currency-customs-value-of-low-value-goods-determination-2018/conflicts","importantCases":"/api/acts/goods-and-services-tax-foreign-currency-customs-value-of-low-value-goods-determination-2018/important-cases","documents":"/api/acts/goods-and-services-tax-foreign-currency-customs-value-of-low-value-goods-determination-2018/documents"}}