Draft AO Guidelines – Low Value GST (NNF 2017/048)


The Australian Taxation Office has released its draft Guideline on the amendments proposed by Treasury Laws Amendment (GST Low Value Goods) Bill 2017 (the Bill), which was tabled in Parliament on 16 February 2017. The broad purpose of the Bill is to ensure that Australian goods and services tax (GST) is payable on supplies of low value imported goods that are purchased by consumers in Australia.

Prior to the proposed amendments, the supply of imported goods to consumers in Australia was not connected with indirect tax zone (see paragraph 9 of draft Guideline) unless the supplier was the importer. Imported goods are generally only a taxable importation (and therefore, subject to GST at the border) if imported in a consignment with a customs value exceeding $1,000.

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For you to be liable for GST on a taxable supply, the supply must be connected with the indirect tax zone. This draft Guideline discusses when a supply of low value goods will be connected with the indirect tax zone because of the proposed amendments. This will be relevant to suppliers, operators of electronic distribution platforms (EDP) and redeliverers.

The draft Guideline also discusses:
  • how to calculate the GST payable on a supply of low value goods
  • the rules to prevent double taxation of goods, and to correct errors or deal with changes in the GST treatment of a supply
  • how the rules interact with other rules under which supplies are connected with the indirect tax zone.

Please click HERE to view the draft Guideline.

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