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.

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