GST on Low Value Goods

The GST Low Value Goods legislation is designed to close out loopholes that multinationals and big business are using to avoid paying Australian tax. It creates a fairer tax system for Australians and supports Australian small businesses by creating a level playing field against foreign competitors.

Millions of Australians rely on jobs in retail and it is unfair that major entities continue to facilitate sales into Australia which are GST free.

The Government understands that small business is the job creator in our economy. In successful Budgets since coming to office, the Coalition Government has delivered programmes to boost small business to take the pressure off owners and managers, to create opportunities for growth, and to lay the ground work for small businesses to increase wages and local job opportunities.

Under legislation passed  by the Parliament, GST will be applied to low-value imported goods up to $1,000. The Government understands Australians are increasingly shopping online from overseas vendors who are able to offer items without tax. This means goods they provide can be cheaper than those offered by Australian businesses giving an unfair advantage to foreign businesses.

For many Australian small businesses, this has an impact on competitiveness as consumers flock to purchase cheaper imports. Online GST retailing issues have been consistently raised by small businesses across Australia and Australian small businesses have sought changes to level the playing field for some time. This legislation is another vital shot-in-the arm for small business and will help Australian retailers to grow, expand and create more jobs for Australians.