Online small businesses in communities throughout the New England Electorate have been given a boost as the Coalition Government delivered on a 2016-17 Budget measure to level the playing field with the Goods and Services Tax (GST) on items purchased online.
Deputy Prime Minister, Minister for Agriculture and Water Resources and Member for New England, Barnaby Joyce said the Government has introduced legislation to level the playing field for Australian businesses which compete with overseas businesses.
“The Applying GST on Low Value Imported Goods measure will extend the GST to goods imported which cost $1,000 or less. This will be a tremendous benefit for small businesses throughout the New England Electorate communities and encourage consumers to continue shopping with local small businesses, to help create more jobs and better opportunities in our community.”
Small Business Minister Michael McCormack said online GST retailing issues have been raised by vendors across Australia.
“Australian small businesses have sought changes to level the playing field for some time. This legislation is another vital shot-in-the arm for small business and will help Australian retailers to grow, expand and create more jobs for Australians. The legislation requires overseas vendors, electronic distribution platforms and goods forwarders – many of which are multinationals – with an Australian turnover of $75,000 or more to register for, collect and remit GST for low-value goods supplied to consumers in Australia,” Mr McCormack said.
Mr Joyce also said the Coalition Government is leading the way for low-value imported goods online.
“Australia will be the first country to apply GST to the importation of low value goods using this model, with jurisdictions such as the European Union moving in a similar direction,” Mr Joyce said.
The legislation will come into effect on 1 July, 2017.