Quick answer
Exported goods are generally GST-free if they leave Australia within 60 days of the earlier of receiving payment or issuing an invoice, according to the ATO. Because GST-registered exporters can usually still claim GST credits on their inputs, their BAS often shows a refund. Lodging monthly rather than quarterly can bring those refunds back sooner, which helps exporters fund production and payment terms.
Key points
- Exports of goods are GST-free if exported within 60 days of the earlier of payment or invoice (ATO).
- GST credits on inputs can usually still be claimed, so exporters' BAS often shows a refund.
- How often you lodge affects how quickly refunds arrive.
- Goods that miss the 60-day window may need an extension from the ATO or may not be GST-free.
Why do exporters often end up with GST refunds?
A business selling only in Australia collects GST on its sales and claims credits on its purchases. Usually it pays the difference to the ATO. An exporter’s position flips. Its export sales are generally GST-free, so it collects little or no GST on them — but it still pays GST on materials, packaging, freight to port, services and overheads, and can usually claim those as credits.
The result: the BAS often shows more credits than GST collected, and the ATO pays a refund. That’s genuinely helpful, but it’s money the business has already paid out, sometimes months earlier.
What does the 60-day rule say?
The ATO states that exported goods are GST-free if they’re exported from Australia within 60 days of whichever of these happens first:
- the supplier receives any payment for the goods, or
- the supplier issues an invoice for the goods.
For instalment payments, the 60-day period applies to the final instalment. The ATO also allows suppliers to request an extension of the timeframe.
In practice, this matters when payment or invoicing comes well before shipment — for example, a buyer who pays a deposit at order and a production run that takes months. The clock may start on that deposit. If a delay pushes shipment past 60 days, the sale may not be GST-free unless an extension is granted.
How does BAS timing affect the cash?
| Lodgement | Refund timing | Suits |
|---|---|---|
| Quarterly | Refund for the quarter’s credits after the quarter ends | Smaller exporters with occasional refunds |
| Monthly | Refunds after each month | Exporters with regular refunds, or heavy input costs |
For an exporter that spends heavily on inputs for a large order, the gap between paying GST on those inputs and getting it back is part of the working capital the order needs. Monthly lodgement shortens it. It’s a decision to make with your accountant, weighing faster refunds against more frequent reporting.
If you’re funding the whole order cycle — inputs, production and the buyer’s payment terms — a short enquiry gets a real person looking at it. There’s no credit check to ask.
What about imported inputs?
Many exporters import components or materials. Three things to know:
- GST on imports is generally paid before goods are released and claimed back on your BAS — another timing gap. See GST on imported goods.
- Deferred GST lets eligible businesses report import GST on their monthly BAS instead of paying at the border — see deferred GST scheme.
- Tradex and duty drawback. The ABF’s Tradex scheme gives an upfront exemption from duty and GST on imported goods intended for re-export or used as inputs to exports. If you’ve already paid duty, the duty drawback scheme can refund it: the ABF says claims can be made within four years of export for most goods, with a minimum claim of $100.
Used well, these can take a surprising amount of cash off the table for an exporter who imports inputs.
What records support GST-free export treatment?
Keep evidence that the goods actually left Australia within the time allowed — typically the export declaration details, the bill of lading or air waybill, and the commercial invoice. business.gov.au notes that most goods valued over $2,000 need an export declaration before they can be exported. Your freight forwarder or broker can provide copies for your file.
Illustrative example
Illustrative only. A small cosmetics manufacturer exports most of its output. In a busy quarter it spends $260,000 on ingredients, packaging, contract filling and freight to port, carrying about $23,000 of GST credits, while its export sales are GST-free. Lodging quarterly, that $23,000 comes back after the quarter ends — on top of a 60-day wait for its main overseas buyer to pay. After talking to its accountant, the business moves to monthly BAS lodgement, and funds the remaining gap with a revolving facility repaid as buyers pay.
How does this fit with export finance?
GST refunds are part of the export cash cycle, not a separate topic. When you map an order, include the GST you’ll pay on inputs and when it comes back. It often means the funding peak is a little higher and earlier than you’d think, then drops when the refund lands. See export working capital and pre-shipment finance for the rest of the picture.
What mistakes cost exporters cash at BAS time?
A few common slips turn a refund into a bill or a delay:
- Missing the 60-day window because a deposit started the clock months before shipment. Diarise the date when you invoice or receive a deposit.
- Coding export sales as taxable in your accounting software, so GST is reported on sales that should be GST-free.
- Not claiming import GST credits because the broker’s entry details never made it to the bookkeeper.
- Lodging late. A refund can’t arrive until the BAS is lodged, so a late BAS is money left sitting with the ATO.
- Ignoring Tradex or drawback on imported inputs, paying duty and GST that didn’t need to be paid up front.
Each one is small on its own. Together they can hold back a meaningful amount of working capital every quarter.
Get the whole export cycle funded
If the timing of GST refunds, production costs and buyer payments is leaving you short, start an enquiry with Trade Loan. It doesn’t affect your credit file, and it isn’t sprayed across a list of lenders — a real person reads it and calls you. Please give us accurate figures for your export turnover and order sizes so we can get you to the right option first time.
Frequently asked questions
Are exports GST-free in Australia?
The ATO says exported goods are GST-free if they are exported within 60 days of the earlier of the supplier receiving any payment for the goods or issuing an invoice. For instalment payments, the 60 days applies to the final instalment. Extensions can be requested from the ATO.
Can I claim GST credits on things I buy to make exports?
Generally yes, if you're registered for GST and the purchases are for your business. Because your export sales carry no GST, the credits can exceed the GST you collect, producing a refund.
Should an exporter lodge BAS monthly?
Many exporters with regular refunds find monthly lodgement brings money back sooner. It means more frequent paperwork, so talk to your accountant about whether it suits your business.
What happens if goods aren't exported within 60 days?
They may not qualify as GST-free, meaning GST could be payable on the sale. If a delay is likely, the ATO allows you to request an extension of the timeframe.
Does the Tradex scheme help exporters with GST?
Tradex gives an upfront exemption from customs duty and GST on imported goods intended for re-export or used as inputs to exported goods, so you don't pay and later reclaim those amounts.