Australia will next year start trying to charge GST on goods bought online by Australians from overseas websites.
According to the 2016 budget papers, GST will be extended to low value goods imported from July 1, 2017.
The measure is estimated to bring in $300 million in extra GST over three years.
Currently online shoppers buying goods under $1000 avoid paying GST but the federal government has been talking about changes to ensure local sites are not disadvantaged against overseas competitors.
“The intent of this measure is that low value goods imported by consumers will face the same tax regime as goods that are sourced domestically,” according to a note from Treasury in the budget papers.
Overseas suppliers with an Australian turnover of $75,000 or more will be required to collect and remit GST for low value goods supplied to buyers in Australia.
Under the budget, the Australian Tax Office is getting $13.8 million over four years to implement the measure.
This change will require formal unanimous agreement of the states and territories before news laws are brought before parliament. The states agreed in-principle in August last year to get rid of the $1000 threshold.
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