Treasury Laws Amendment (GST Low Value Goods) Bill 2017 (NNF 2017/133)
The Senate today 19 June 2017 debated the above-mentioned Bill and agreed to amendments on its Third Reading. Details in relation to these amendments are set out below in the links but in general the GST low value aspects will be referred to the Productivity Commission for review as to:
a) the effectiveness of the (Senate) amendments; and
b) whether models for collecting goods and services tax in relation to *offshore supplies of low value goods other than the amendments might be suitable (including evaluation of the effects of the models on Australian small businesses and *consumers); and
c) any other aspect the Productivity Commission considers relevant to the implementation of the amendments.
In addition, the date for implementation has been moved from 1 July 2017 to 1 July 2018. This decision by the Senate adds a bit of sense and sensibility to a Bill which not appropriately been addressed with industry nor had it delivered on the Government's own Cost Recovery Impact Statement and Reports as required in relation to all Bills.
The Productivity Commission will hold hearings to be completed by 31 October 2017 and this will provide for a more appropriate structured approach in relation to policy and process for the implementation of the GST recovery which has been agreed in a bipartisan approach but not the appropriate methodology for collection.
So notwithstanding the delay, GST will be recovered on importations below $1000 threshold after 1 July 2018 and the interim timeframe will allow those with the particular vested interest in the appropriate model for collection to put forward their particular positions to the Productivity Commission and continue their lobby of government.
Schedule of the amendments made by the Senate
Treasury Laws Amendment (GST Low Value Goods) Bill 2017 – Bill Details