With the establishment of the Swan River Colony in 1829 a bounty on imports was granted. This bounty took the form of a grant of 40 acres of land for every 3 in the shape of capital, stock, implements of husbandry etc. imported, and continued until 1832 when the first tariff for revenue purposes was introduced.

At first stipendiary resident magistrates combined their legal duties and other activities, with the collection of custom duties. From 1834 to 1853 a Collector of Revenue was appointed to take over the responsibility of customs collection and in 1853 the first Collector of Customs, Mr. R. McB. Brown, was appointed. By 1873 the Collector had become responsible for the outports of Bunbury, Vasse (Busselton), Albany, Champion Bay (Geraldton) and Roebourne. In 1901 at the time of federation this had increased to 16 out-ports.

By the Constitution Act 1889, which gave Western Australia
responsible government, it became lawful for the legislature of the colony or State to impose and levy such duties of customs as it saw fit.

On 18 March 1892 assent was given to the Customs Consolidation Act 1892 which came into force on 1 May 1892. This Act made a State Minister responsible for the general control of the Customs Department and laid out all the functions and legal requirements of the Customs Department.

At Federation the customs administration of the colonies was
transferred to the Commonwealth under the Constitution. This gave the Commonwealth Government exclusive control of the collection of customs and excise duties and the administration of the associated laws and regulations. In October 1901 the Customs and Excise Acts from which the Commonwealth department of Trade and Customs derived its major powers, were passed and the first Commonwealth Customs and tariffs were introduced. Western Australia, however, did not fully participate as the State Government felt that Western Australia would be disadvantaged by the free trade system. The Commonwealth
Government introduced a means whereby the Western Australian State paid a sliding scale of duties for five years, when it then became a full participant.