FROM 1 July 2017, GST will be extended to low value goods imported by consumers in Australia. Currently low value goods (goods with a customs value of $1000 or less) are generally not subject to GST when imported directly into Australia by the recipient.
The current $1000 GST, duty and reporting threshold will not be changed or lowered. Instead, GST will be collected through suppliers, electronic distribution platforms or goods forwarders under the existing registration system or a simplified system.
The intent of this legislation is that low value goods imported by consumers will face the same tax regime as goods that are sourced domestically.
These arrangements will be reviewed after two years to ensure they are operating as intended and to take into account any international developments.
Further information is available at treasury.gov.au. Alternatively, Seabridge customs brokers are experienced in navigating the ever-changing legislation for importing goods in to Australia. To ensure complete compliance whilst avoiding delays and further costs call Seabridge today on 1800 727 195.