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During parliament this week, changes to GST collection online were introduced as the Government delivered another boost for small business, says Small Business Minister Michael McCormack.
“The Government understands that small business is the job creator in our economy,” Mr McCormack said.
Small businesses across Australia have brought up issues related to online GST retail. He said, “Australian small businesses have sought changes to level the playing field for some time. This legislation is another vital shot-in-the-arm for small businesses and will help Australian retailers to grow, expand and create more jobs for Australians”.
Mr McCormack stated that under this legislation, GST will be applied to low-value imported goods up to $1,000.
“The Government understands Australians are increasingly shopping online from overseas vendors who are able to offer items without tax. This means goods they provide can be cheaper than those offered by Australian businesses giving an unfair advantage to foreign businesses. For many Australian small businesses, this has an impact on competitiveness as consumers flock to purchase cheaper imports”.
The legislation insists on businesses, which take the form of overseas vendors, electronic distribution platforms and goods forwarders, with a turnover of $75,000 or more to register for, collect and mail GST for low-value goods supplied to consumers in Australia.
Mr McCormack adds that Australia is leading in taxing low-value goods. Australia will be the first country to apply GST to imported goods using a vendor collection model.
This is an alternative method for the Government to deliver more for small businesses and help support the economy and generate jobs.
This legislation will come into effect on 1st July 2017.
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