The Turnbull Government welcomes the Productivity Commission’s report on Collection Models for GST on Low Value Imported Goods.
Applying the GST to goods costing $1000 or less is a win for Australian retailers. It removes the unfair advantage for foreign businesses and creates a level playing field to help Australian businesses grow and create more jobs and opportunities.
The report confirms the Government’s approach is the most practical and achievable option and provides industry with certainty.
The legislation complements the Government’s other tax integrity measures that ensure foreign businesses pay the right amount of Australian tax, such as the Diverted Profits Tax and applying GST to digital goods and services purchased from offshore websites.
The Government notes the report’s recommendation and thanks the Productivity Commission for its thorough and diligent work.
The full report is available on the Productivity Commission’s website.