- GST changes to the Low Value Goods threshold
From 1 July 2018, GST will be extended to low value goods imported by Australian consumers.
Following the recommendations of the Senate Economics Committee, the Australian Parliament on 21 June passed amendments to the GST Law that requires overseas retailers with an Australian GST turnover of AUD 75,000 or more to register and remit GST on sales of goods valued less than $1,000 to Australian consumers (vendor collection model).
Under the new vendor collection model, online marketplace services such as eBay and Amazon, together with ‘redeliverers’ of overseas-sourced goods bound for Australian consumers, will also be impacted.
This topic has been one of high profile interest amongst the relevant stakeholders with the Government now implementing the controversial vendor collection model as passed by Parliament on 21 June 2017. We understand that the Productivity Commission is due to report on the vendor collection model later this year.
Originally planned to be implemented on 1 July 2017, the law now provides a 12-month delay to enable businesses more time to prepare for these new GST requirements.