Australians set to pay online GST

All online purchases imported into Australia will be subject to the 10% GST from July 2017.

The treasurers of our brown and sun-drenched land have convened for a summit on tax today, and one thing to emerge from the meeting of our state and federal fiscal betters that, from 2017, there will not longer be a $1000 threshold for the GST for online purchases. The plan must now go to parliament, where it is expected to pass, although collecting the tax from all foreign sellers is likely to be costly and complicated. Only sellers with an Australian turnover of $75,000 will need to register and charge the tax.

He said further modelling on a range of possible tax reforms had been commissioned and the treasurers would meet again in September.

Mr Hockey admitted the GST change on online sales could affect hundreds of overseas companies and be difficult to enforce.

Mr Hockey told reporters at a press conference that local retailers were suffering a competitive disadvantage because they were paying more tax than their foreign online competitors.

The state and territory treasurers failed to agree on taking the GST off feminine hygiene products.

He accepted that while it would be relatively simple to ensure such large companies as Amazon and digital providers complied, it coulds take several years. They said their proposal has the support of the federal Labor Party and urged their counterparts in New South Wales, Western Australia, Tasmania, and the Northern Territory to back the reform.

Consumer advocacy group CHOICE claims that, if treasurers decide to lower or abolish the LVT, Australian consumers could face new fees for ordering from small overseas businesses that aren’t registered to process the GST. The introduction of this would provide a dual advantage, in that the funds raised will contribute to much needed services within Australia, as well as eliminating any advantages currently enjoyed by international businesses over Australian retailers, according to Zimmerman.

“We don’t want to do anything that would add heat to the market in some jurisdictions”, Mr Hockey said.