Govt releases draft bill imposing GST on low-value goods
The federal government has released the draft of a bill that will impose a GST on goods worth under $1000 that are purchased online from international vendors.
The proposed legislation operates under a ‘vendor collection’ model for non-resident vendors with an annual turnover of $75,000 and above to Australian consumers. These vendors will be required to register with the Australian government and charge GST. Vendors who sell less than $75,000 annually to Australian consumers are exempt.
Morrison said Australia would be the first country to apply a GST to the importation of low-value goods using a vendor collection model. The law is anticipated to come into effect on 1 July 2017.
As previously reported by Books+Publishing, the government announced its intention to collect GST on low-value goods last year.
Comments on the exposure bill close on 2 December. For more information, click here.
Category: Local news