The Turnbull Government has today released exposure draft legislation and explanatory material for the GST on low value imported goods measure announced in the 2016-17 Budget.
The draft legislation is the next step in the Government’s commitment to level the playing field for Australian businesses selling goods that cost $1,000 or less that compete against overseas businesses.
The intention is that low value goods imported by consumers in Australia will face equivalent GST treatment to goods that are sourced domestically.
From 1 July 2017, the law will require overseas vendors, electronic distribution platforms and goods forwarders — many of which are multinationals — to account for GST on sales of low value goods to consumers in Australia if they have GST turnover of $75,000 or more.
Australia will be the first country to apply GST to the importation of low value goods using a vendor collection model, with jurisdictions such as the European Union moving in the same direction.
In-principle agreement to this change was provided by the Council on Federal Financial Relations on 21 August 2015.
The exposure draft Bill and explanatory materials are available on the Treasury website.
Submissions will close on Friday 2 December.