Quantcast
Subscribe to our newsletter

GST on low-value goods measure exceeds expectations

The ATO has collected over $250 million in GST for the first nine months of the low-value goods measure, which began on 1 July 2018.

  • Maja Garaca Djurdjevic
  • July 08, 2019
share this article

As at 1 May 2019, the ATO has now collected over $250 million in GST for the first nine months of the low-value goods measure, which began on 1 July 2018, outstripping forecasts by $180 million.

GST collection on low-value imported goods has exceeded the ATO’s expectations, with $81 million of GST raised in the first quarter, surpassing the $70 million projected for the full year.

The low-value goods measure requires overseas businesses to charge Australian GST on their sales of low-value goods to consumers in Australia.

Over 1,000 overseas businesses have registered for GST, which includes all the known major suppliers and international platforms.

“The Organisation for Economic Co-operation and Development, the World Customs Organization and others have studied reform options for low-value goods. The Australian approach is increasingly recognised internationally as the model to follow,” the ATO said in a statement late last week.

As businesses do not need to register unless they meet the $A75,000 GST turnover requirements, most small independent operators do not need to register and have not been affected by this measure.

Receive the latest Public Accountant news,
opinion and features direct to your inbox.

related articles