03 May 2016

Australian Federal Budget 2016-17: Goods and Services Tax (GST)

The GST changes aim to bring a level playing field between imported and domestically sourced goods.

Low Value Goods Imported by Consumers

The GST regime will be extended to “low value goods” imported by consumers from 1 July 2017.

Under the current law, no GST is generally chargeable on the importation of goods into Australia which have a value at or below $1,000.

Whilst it is unclear how the law will change with respect to taxable importations, the budget papers provide that overseas suppliers with an Australian GST 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. It isn’t clear from the budget papers what an “Australian turnover” will comprise of.

It is intended that these arrangements will be reviewed after two years to ensure they are operating as intended and take account of any international developments.


For a full analysis of this year's Budget measures, please see Australian Federal Budget 2016-17.

Key contacts

Share on LinkedIn Share on Facebook Share on Twitter
    You might also be interested in

    On 12 October 2020, the OECD released a Blueprint for each of the Pillar One and Pillar Two initiatives (Pillar One Blueprint and Pillar Two Blueprint, or together, the Pillar Blueprints) for public...

    09 December 2020

    Recent political, legal and legislative developments mean that pressure on Australian companies to address climate risk has never been higher.

    09 November 2020

    The Full Federal Court handed down its decision in Victoria Power Networks Pty Ltd v Commissioner of Taxation on 21 October 2020, with a unanimous decision to partially overturn the first instance...

    28 October 2020

    The recent decision in Resolute Mining Limited v Commissioner of State Revenue is an important reminder of the need to carefully consider the duty implications of any contingent consideration for a...

    19 October 2020

    You may also be interested in...

    Legal services for your business

    This site uses cookies to enhance your experience and to help us improve the site. Please see our Privacy Policy for further information. If you continue without changing your settings, we will assume that you are happy to receive these cookies. You can change your cookie settings at any time.

    For more information on which cookies we use then please refer to our Cookie Policy.