Align online: A fair GST playing field for Aussie small business
ONLINE small businesses in communities throughout Menzies were given a boost this week as the Turnbull-Joyce Government delivered on a 2016-17 Budget measure to level the playing field with the Goods and Services Tax (GST) on items purchased online.
“The Government has introduced legislation this week to level the playing field for Australian businesses which compete with overseas businesses,” Federal Member for Menzies, Kevin Andrews said.
“The Applying GST on Low Value Imported Goods measure will extend the GST to goods imported which cost $1,000 or less.”
“This will be a tremendous benefit for small businesses throughout Menzies communities and encourage consumers to continue shopping with local small businesses, to help create more jobs and better opportunities in our community.”
Small Business Minister Michael McCormack said online GST retailing issues have been raised by vendors across Menzies and around Australia.
“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,” Mr McCormack said.
The legislation requires overseas vendors, electronic distribution platforms and goods forwarders – many of which are multinationals – with an Australian turnover of $75,000 or more to register for, collect and remit GST for low-value goods supplied to consumers in Australia.
Mr Andrews also said the Coalition Government is leading the way for low-value imported goods online.
“Australia will be the first country to apply GST to the importation of low value goods using this model, with jurisdictions such as the European Union moving in a similar direction,” he said.
The legislation will come into effect on 1 July 2017.