GST COLLECTION ON LOW VALUE GOODS UPDATE
To Our Valued Customer,
As most importers would be aware, imports with a value below $1,000 ( FOB, AUD ) are regarded as “low value goods” and are currently exempt from GST. In August 2015 it was proposed that consignments of low value goods, imported by businesses with an annual GST turnover of $75,000 or more, would be subject to GST from July 1, 2017. The intent of this change is to ensure that low value goods face an equivalent GST treatment to other imported goods as well as products sourced in Australia. Furthermore, the increased revenue raised as a result of this change is estimated to be in the vicinity of $300 million over the next four years.
We can confirm that an amended version of the relevant Bill to introduce this change, the Treasury Laws Amendment ( 2017 Measures No. 1 ) Bill 2017, was passed in the Senate yesterday. Perhaps the most important amendment was to delay the commencement of the legislation until July 1st, 2018.
As a result of this amendment, low value goods will remain GST exempt for at least another 12 months. BR International will keep you updated of any developments in relation to this matter.
Keeping you updated
BRi Customs Team
Back to News Page