The Goods and Services Tax (GST) treatment for importing of low value goods (LVG) valued at less than AU$1,000 has led to various reviews over many years but the Government of Australia is now preparing to legislate the “destination principle”. The retailers of Australia have maintained that they face an uneven playing field with respect to their sales to Australian customers that are subject to GST, given those of their foreign competitors generally are not.
The Government of Australia has committed to eliminating this inconsistency, most notably in the 2016 Budget. In a move that will be welcomed by most Australian retailers, but likely very few offshore sellers and even fewer Australian consumers, the Government has issued Exposure Draft legislation intended to impose GST on such LVG sales starting 1 July 2017.
