You are using an older browser version. Please use a supported version for the best MSN experience.

Low value imported goods face GST

AAP logoAAP 4/11/2016 Paul Osborne, AAP Senior Political Writer

Imported goods that cost $1000 or less will face an equivalent GST treatment to goods sourced in Australia, under draft laws released on Friday.

Treasurer Scott Morrison said Australia would be the first country to apply GST to the importation of low value goods using a "vendor collection model", with jurisdictions such as the European Union moving in the same direction.

Mr Morrison said in a statement it would help level the playing field for Australian businesses competing against those overseas.

The law change will mean from July 1, when a consumer buys low value goods online or over the telephone from overseas they will be charged 10 per cent GST on the purchase, including delivery costs.

Overseas suppliers who sell less than $75,000 of low value goods to consumers in Australia annually will not be required to do anything.

However, if they sell $75,000 or more of such goods they will be required to register for and pay GST on those sales.

Comment on the bill will close on December 2.

image beaconimage beaconimage beacon