Treasury Laws Amendment (GST Low Value Goods) Bill 2017

“In this context, the Bill is structured to relieve the cost of collection from the Australian government. To do so, it places an obligation on foreign firms doing more than A$75,000 worth of business with Australian customers to collect GST on behalf of the Australian government for their transactions with Australian customers. Overseas firms will be required to “register for, collect and remit” GST to the Commonwealth. Further complexities have been added by the Bill’s intent to target “online marketplaces” rather than individual suppliers themselves – the government has in mind here platform retailers such Amazon.com’s marketplace service or eBay – and redelivery services, which on-forward goods to Australia from foreign firms that do not natively offer international shipping.” – Extract from the Submission by Chris Burke and Sinclair Davidson to the Inquiry.

The challenge of de minimis continues with the Senate Economics Legislation Committee Inquiry into the Treasury Laws Amendment (GST Low Value Goods) Bill 2017 (the Bill). In the referenced link below, members will find details in relation to the Bill and the Inquiry which will be held in Melbourne 21 April 2017. It is interesting in relation to the Inquiry that “round up the usual suspects” is in vogue with specific interested parties making comments as to why there should be, or should not be, the introduction of the legislation. All this depending upon the party’s interest in the economics of the process either as retailers, international air freight forwarders, postal authorities or other players. Submissions from the Conference of Asia Pacific Express Carriers, Global Express Alliance, Australian Retailers Association and others make for interesting reading.

In relation to the Bill, the CBFCA has, in the past, provided its comment to the Australian Taxation Office, Department of Immigration and Border Protection and the Department of Finance in relation to its perception on policy and process implementation.

In relation to Submissions to the Inquiry, the CBFCA has not noted any new issues or discussion points that have not been raised in the past by a variety of persons. There have been restatements of principles, economic benefit tests, equity and a variety of “if it's not broken why fix it?” The Submissions are commended to members for their interest. Some suggest skilful policy and process determination, others simplicity, or more correctly simplistic aspects as to process and implementation.

So as the days edge closer to 1 July 2017, certain service providers have been noted as flexing their muscles in the Media as to denial of service to Australian purchasers.

Some interesting days ahead.

Treasury Laws Amendment (GST Low Value Goods) Bill 2017

Submissions

Treasury Laws Amendment (GST Low Value Goods) Bill 2017 [Provisions]