GST changes: The fix WAS in!

The Senate has pulled back from passing the Treasury Laws Amendment (GST Low Value Goods) Bill 2017, which would have seen GST imposed on goods valued under $1000 from July 1.

The Senate Economics Legislation Committee released its report on May 10, just prior to the presentation of the 2017 Budget. 

The new law would have seen overseas businesses with an annual turnover of $75,000 or more required to register with the ATO to collect GST on all goods sold. ‘Electronic platforms’ (ie, retailers) such as Ebay and Amazon would have been required to collect GST on behalf of their retailer clients.  It was budgeted to bring in $300 million over the next four years.

The Senate Economics Legislation Committee report made the following recommendations: 
· The Government note the in-principle support of Labor Senators for the collection of GST on low value imports;
· That the Senate should not pass the Treasury Laws Amendment (GST Low Value Goods) Bill 2017;
· The Government complete a full review within one year, with engagement from all stakeholders. The review should include an analysis and comparison of alternative implementation models;
· The Government deliver a Regulation Impact Statement with any revised legislation to assure small businesses and consumers that measures will operate as intended;
· Any revised legislation is to have a start date of 1 July 2018

Our report in late April flagged the probability of this outcome, provoked in part by aggressive lobbying by the giant multinational retailers, which included threats of boycotts of Australian consumers (Ebay) and non-compliance with Australian laws (Amazon).

Senate GST Report

 

 

 

 


4 thoughts on “GST changes: The fix WAS in!

  1. Well when 1.8 million retail and related staff are on the dole because the Government wont protect our borders from international boardrooms, it’s good to know that we can continue to buy goods GST free. I just wonder who is going to pay the tax to pay my dole?

    • If the existence of the current LVT is the cause of your business’s demise, then I think the GST is the least of your worries…

  2. Lets bring on an early poll and get rid of this weak government who is controled by the multi-nationals, just who are they governing for? Not Australia! I used to vote liberal are my life, but never again, with the last budget, bring back Tony on a White horse to save the day.

  3. Perhaps Photo counter should do a report on the major retailers purchasing from the likes of B&H and not supporting our local suppliers. I can honestly say that i support 100% local in my store and have resisted the temptation…….not so for many others and I’m sure that there are some very “large” Photo stores cringing right now! How easily they complain when they can’t get support!

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