Australia: GST on low value imported goods

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As of 1 July 2017, Subject to Parliamentary approval, overseas businesses with an Australian turnover of A$75,000 or more may need to:

  • register for GST
  • charge GST on low value imported goods that they sell to consumers in Australia, and
  • remit the GST collected to the ATO.

Hence, the consumers in Australia will pay GST on goods they purchase valued at A$1,000 or less. This is the case whether they buy from GST-registered Australian or overseas business. The same rules apply to purchases made by Australian businesses not registered for GST.

GST will now also apply on the supply of imported goods valued at A$1,000 or less if:

  • an Australian-based GST-registered business, and
  • arrange for goods to be consigned to consumers in Australia from an overseas warehouse or manufacturer.

The entity that is responsible for GST and needs to lodge GST returns will be the overseas or Australian-based seller, Electronic Distribution Platform, or re-deliverer. These goods will not be subject to GST as a taxable importation because the GST will be collected through the supplier or entity treated as the supplier.

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