• GST on low value imported goods

    Subject to Parliamentary approval, from 1 July 2017 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.

    This means 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.

    If you are an Australian GST-registered business and buy low value imported goods for your business from overseas, you will need to supply your ABN at the time of purchase as supplies to you should not be subject to GST. This is important because if GST is charged on a purchase that is not subject to GST you will not be entitled to a GST credit.

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

    • are 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 either the overseas or Australian-based seller, Electronic Distribution Platform, or redeliverer. 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.

    These proposed changes are currently before Parliament. A draft Law Companion Guideline and other guidance are available on our Let's talkExternal Link page. You can provide feedback until 24 March.

    See also:

      Last modified: 16 Mar 2017QC 51520