Up to 30 June 2017, only imports valued at over $1,000 attract GST into Australia and are reportable to the ATO. This GST is captured and collected by the transport company importing the goods.
On 16 February 2017, the Australian government passed legislation that will require all overseas suppliers with an Australian turnover of $75,000 in a 12 month period to become registered for GST in Australia.
This means that all low-value imports are eligible to have GST added to them.
- Overseas suppliers required to register for GST can opt to register for the ‘simplied registration and reporting system’. They must, however, register to either the simplified or standard reporting system if their turnover reaches the GST threshhold
- Purchases made over ebay, Amazon, online stores etc. that are below $1,000 may be increased by the value of GST
- Businesses that are registered for GST in Australia will not be charged this GST. You must provide your ABN to the supplier to have GST excluded from purchase.
- Personal purchasers are not eligible to claim back any GST they have paid. It is absorbed into the price of the goods
- Online shopping may become more price competitive with physical shopping
- When a business makes a purchase from outside Australia, view the tax invoice. If you are registered for GST, provide your ABN and request the GST be omitted. If you are not registered for GST, claim any GST on the tax invoice.
- The new legislation will provide additional income to the Australian Government
- These changes take effect 1 July 2017