Campaign lobbies for lower GST threshold in NZ

A campaign calling for the New Zealand government to lower the GST-free threshold on online purchases from NZ$400 (A$393) to NZ$25 (A$24.52) has been launched by Retail NZ and Booksellers NZ.

Under the changes sought by industry groups, offshore online retailers would be required to register for GST in New Zealand and charge the extra 15% GST on purchases over NZ$25. In a statement, Retail NZ public affairs general manager Greg Harford said NZ’s high threshold for offshore GST collection was eroding the tax base and threatening local jobs. ‘The government is missing out on more than NZ$200 million [A$197 million] a year in GST and duty on low value goods alone—funding that could pay for at least 4345 new first year primary school teachers, or more than 9000 hip replacements every year,’ said Harford.

Booksellers NZ CEO Lincoln Gould said independent bookshops are among the small businesses most affected by the current high threshold. ‘Booksellers, like other retailers, are finding it hard to compete with foreign websites because they start with a 15 per cent price disadvantage. We know that bookshops throughout New Zealand would sell more books and employ more New Zealanders if the tax loophole was closed.’

Retail NZ and Booksellers NZ members are writing to politicians as part of the ‘#eFairnessNZ’ campaign. For more information, visit the Retail NZ website here.