As we have previously discussed there are changes being introduced by the Government in relation to GST for online purchases.
GST and tariffs are not currently payable unless the taxes total $60 or more (referred to as a de minimis) and this equates to goods valued from approx. $226 to $400 depending on the type of goods imported.
A few weeks ago the Minister of Customs announced the Government's plans to lower the GST thresholds in relation to certain online purchases.
The Government accepts that there is more work to be done on this before deciding on a final outcome. There is however some pressure for the Government from retailers to lower the threshold sooner rather than later. The role for Customs is to find a solution where the cost of gathering the revenue doesn’t exceed the revenue collected. It is expected that this will be done in the next couple of years with the view to lowering the threshold potentially from the 2018/2019 financial year.
Given that the volume of imported goods is expected to keep rising due to more and more people shopping online and the foregone revenue to the Government, this will be an inevitable outcome.
It has been confirmed that no changes will be made before consulting the public first. So watch this space for your opportunity to make a submission on this.