GST on low-value imported parcels soon to be reality says Federal Government

After years of continuous lobbying by our industry and small-business groups, the federal government has given the most positive sign yet that Australian retailers will be treated fairly when it comes to competing on a level playing field with overseas online sellers.

State treasurers will be asked to subject almost all imported parcels to goods and services tax under a proposal that would cut the GST-free threshold from $1000 to just $20. This would bring Australia into line with Canada and the UK who operate under a similar threshold and the US which taxes everything that comes into its borders.

The change is being pushed by federal Assistant Treasurer Josh Frydenberg?, who wants to level the playing field between digital and physical sales after this year’s budget extended GST to all digitally delivered music, movies and software regardless of the price.

The Treasurer has been quoted this week, “This is hugely important for small business,” he said. “How do I say to a bookseller in Lane Cove that they have obligations to pay tax, but Amazon selling the same book from overseas doesn’t? It’s unsustainable.

“It’s been hard to plug but it’s got to come to an end.”

We agree.

Read the full story at this link.

The member’s advocacy efforts via the AMA to their local members and other parliamentarians has no doubt had its due influence.

Also here’s and interesting article from the Age: