Just a correction, if the goods are valued above $900, you actually pay for the whole value and not just the difference. From the Home Affairs website:"What happens if I exceed the duty free limits?If you exceed Australia’s duty free limits, duty and tax will apply on all items of that typ...

Woolies will lose some customers, no doubt about that, but it will be interested how this affects Qantas Frequent Flyer program as they loose a big partner in the retail area without good alternatives: Coles is tied to Etihad, Myer is already a partner but would not ditch their own points scheme ...