The state premiers have agreed that GST will be charged on overseas online purchases under $1000 and that they would examine the option of increasing the GST rate in general.
A threshold as low as $20 is being contemplated as the point where the GST tax could soon apply to online purchases, according to ABC’s AM business editor Peter Ryan. While no agreement emerged to increase the GST rate or base, debate on an appropriate level for the GST to kick in has begun after state and territory ministers agreed last week that the current tax free threshold of $1,000 should be lowered.
An agreement on the final level of the new GST threshold is now a challenge for Treasurer Joe Hockey, who needs to get agreement from state and territory leaders. The detailed reform options will be considered before the end of the year.
We advise our clients who have regular imports valued under $1,000.00, by Airmail, Courier or Parcels Post, to re-examine their costings in light of the change, and talk to us if you need more information and assistance.