You cant really compare the IS20 to the Stage 1 Garrett Powermax. The Garrett is better compared to the larger IS38 (is said to flow up to 15% more than the IS38 from memory).
The IS20 is a great upgrade for the Polo GTI with the 1.8T. If you look on Tarmac Engineering's facebook page they did one just a few weeks ago with great results. You could always run the stock downpipe but would definitely recommend getting an upgraded downpipe with less restrictive catalytic converters, otherwise you wont get the full benefit of the turbo/tune and will have higher than ideal cylinder temps (not good) due to the more restrictive downpipe and the hot gasses not being able to escape quickly out of the exhaust.
I wouldn't touch the new turbo & tune package that APR offers. No way I would upgrade the turbo and keep the factory downpipe. Look how laggy it comes on boost and also the cylinder temps would be high. No thanks - move to a different tuner. Speaking of tuners, seeing you are in QLD - go see Tarmac Engineering.
Also, seeing your car is a manual you will have to budget a new clutch in your near future if you go for a bigger turbo as it will start to slip.
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