GST to Apply to Low Value Goods
From the 2016-17 Federal Budget:
“The GST will be extended to low value goods imported by consumers from 1 July 2017.
The measure is estimated to have a gain to GST revenue of $300.0 million over the forward estimates period. This will increase GST payments to the States and Territories by $270.0 million over the forward estimates period. The difference is due to timing of GST collections.
The intent of this measure is that low value goods imported by consumers will face the same tax regime as goods that are sourced domestically. Overseas suppliers that have an Australian turnover of $75,000 or more will be required to register for, collect and remit GST for low value goods supplied to consumers in Australia, using a vendor registration model.
These arrangements will be reviewed after two years to ensure they are operating as intended and take account of any international developments. Funding of $13.8 million over four years from 2016-17 will be provided to the Australian Taxation Office to implement the measure. This change will require the unanimous agreement of the States and Territories prior to the enactment of legislation.
This follows the in-principle agreement made on 21 August 2015 by the Council on Federal Financial Relations Tax Reform Workshop”.