Kate Law and Anna Derlacz discuss the Productivity Commission's report outlining its preferred GST collection model for low value imported goods.
On 31 October 2017, the Australian Government’s independent research and advisory body – the Productivity Commission (PC) – handed in its final report into Collection Models for GST on Low Value Imported Goods (PDF 1.12MB) with a clear message.
The Government’s legislated hybrid vendor collection model, although not perfect, is here to stay, making Australia a ‘first mover’ globally.
From 1 July 2018, offshore sellers, online marketplaces and re-deliverers will be liable for goods and services tax (GST) on goods valued at less than AUD1,000 that are imported by Australian end consumers.
In its detailed report, the PC found that:
Practical issues will include:
Meanwhile, Australian consumers can expect a rise in the price of goods that they purchase from offshore on or after 1 July 2018.
Just another reason to shop big this year.