The Australian Government will apply the 10 percent goods and services tax to low-value goods purchased from overseas sellers from July 1, 2018, a year later than originally planned.
 
The Government's legislation was passed on June 21, following an amendment to delay implementation by a year.
 
The new law will apply to imports of good costing AUD1,000 (USD756) or less. It will operate on a vendor collection model, meaning that overseas suppliers and online market places with an Australian GST turnover of AUD75,000 or more will have to account for GST on sales of low-value goods to consumers in Australia.
 
Currently low-value goods – i.e. goods with a customs value of AUD1,000 or less – are generally not subject to GST when imported directly into Australia by the recipient.
 
The GST collected from this measure will go to the states and territories.
 
Treasurer Scott Morrison said: "The Australian Government has delivered a win for Australian retailers, by removing the unfair advantage foreign businesses had with respect to GST. A level playing field will help Australian businesses grow and create more jobs and opportunities."
 
"Removing a distortionary tax advantage to foreign businesses will restore integrity to Australia's tax system to close down loopholes and prevent tax avoidance," he added.
 
The Australian Government will apply the 10 percent goods and services tax to low-value goods purchased from overseas sellers from July 1, 2018, a year later than originally planned. The Government's legislation was passed on June 21, following an amendment to delay implementation by a year. The new law will apply to imports of good costing AUD1,000 (USD756) or less. It will operate on a vendor collection model, meaning that overseas suppliers and online market places with an Australian GST turnover of AUD75,000 or more will have to account for GST on sales of low-value goods to consumers in Australia. Currently low-value goods – i.e. goods with a customs value of AUD1,000 or less – are generally not subject to GST when imported directly into Australia by the recipient. The GST collected from this measure will go to the states and territories. Treasurer Scott Morrison said: "The Australian Government has delivered a win for Australian retailers, by removing the unfair advantage foreign businesses had with respect to GST. A level playing field will help Australian businesses grow and create more jobs and opportunities." "Removing a distortionary tax advantage to foreign businesses will restore integrity to Australia's tax system to close down loopholes and prevent tax avoidance," he added.