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MTA Queensland makes a submission re: GST on low value imported goods
The Government has released exposure draft legislation and associated explanatory material that would amend the goods and services tax (GST) law to give effect to the 2016-17 Budget decision to apply GST to low value goods imported by consumers.
From 1 July 2017, the law will require overseas vendors, electronic distribution platforms and goods forwarders to account for GST on sales of low value goods to consumers in Australia if they have GST turnover of $75,000 or more.The intention is that low value goods imported by consumers in Australia will face equivalent GST treatment to goods that are sourced domestically.
MTA Queensland supports the proposed policy position as it essentially proposes to ‘level the playing field for Australian businesses selling goods that cost $1,000 or less that compete against overseas businesses.’ In numerous submissions to Commonwealth departments and agencies we've enunciated the challenges faced by our members particularly with spare parts divisions in their businesses to compete with overseas on-line trading. The proposed legislation achieves our long held policy objective of competing on a ‘level playing field.’
Click here to read our submission.
If the draft legislation has a successful passage through the Federal Parliament, it will apply from 1 July 2017.
For more information, please see Treasurer Scott Morrison’s media statement.