GST Low Value Goods Bill 2017 (NNF 2017/127)


The above-mentioned Bill was today debated in the Second Reading speech where a proposed amendment as set out below was put by the Opposition. The proposed amendment was defeated and the Bill read for a third time which will now see its passage to the Senate for its consideration. It is interesting to note the suggested amendments to the Bill particularly as to the deferral of implementation until 1 July 2018.

As set out in the attached commentary the suggested amendment stems from the Senate Economics Legislation Committee Recommendation that the Bill be passed but the implement date be delayed to 1 July 2018.

It is clear that there is in principle agreement across the board as to the collection of GST however the question still remains as to who should collect it and who that may be is clearly influenced by where the parties are in the discussions. The general argument being that it is someone else's problem and responsibility to collect rather than how do we make this work efficiently, effectively, and with equity across the the taxing regimes.

"The order of the day having been read for the resumption of the debate on the question—That the bill be now read a second time—

10:17:17 am

Debate resumed by Mr Bowen who moved, as an amendment—

That all words after “That” be omitted with a view to substituting the following words:

“whilst not declining to give the bill a second reading, the House notes:
  1. there is in-principle support in the Parliament for reforming the GST Low Value Threshold, and giving Australian retailers a level playing field with their overseas competitors;
  2. despite being introduced in the 2016 Budget, the Parliament is only debating this bill with less than a month to go before its proposed start date;
  3. the Government has completely mismanaged the implementation of this measure; and
  4. there is wide stakeholder dissatisfaction with the proposed model, with stakeholders saying:
  1. the proposed model will be complex and costly to administer;
  2. there will be unfavourable impacts on consumers with the costs of implementation being passed on; and
  3. there will be issues surrounding compliance; and
  1. calls on the Government to:
  1. delay implementation of this measure for one year in order to get the measure right; and
  2. conduct a Productivity Commission review in order to determine the best method to implement this measure, with a report back to the Parliament by the end of 2017”."

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