Senate Committee Recommendations - GST on Low Value Goods

On 23 March 2017, the Senate referred the provisions of the Treasury Laws Amendment (GST Low Value Goods) Bill 2017  to the Senate Economics Legislation Committee for inquiry and report. 
 
The bill proposes to amend i) A New Tax System (Goods and Services Tax) Act 1999 to ensure that goods and services tax is payable on certain supplies of low value goods that are purchased by consumers and are imported into Australia; and ii) Taxation Administration Act 1953 (TAA) to broaden administrative penalties for making false or misleading statements.
 
Freight & Trade Alliance (FTA) representatives, Kai Lincoln and Paul Zalai, presented to the committee advocating for 3 recommendations including a 12 month delay of implementing reforms until the bill receives Royal Assent.
 
The Senate Economics Legislation Committee released its report yesterday, 9 May 2017, with the recommendation that the bill be passed, but that the implementation date be delayed to 1 July 2018.

The following recommendations have been outlined in the "Dissenting Report by Labor Senators":
 

• The Government note the in-principle support of Labor Senators for the collection of GST on low value imports.

• That the Senate should not pass the Treasury Laws Amendment (GST Low Value Goods) Bill 2017.

• The Government complete a full review within one year, with engagement from all stakeholders. The review should include an analysis and comparison of alternative implementation models.

• The Government deliver a Regulation Impact Statement with any revised legislation to assure small businesses and consumers that measures will operate as intended.

• Any revised legislation is to have a start date of 1 July 2018

 
The report also outlines additional comments by Senator Nick Xenophon … read more
 
FTA will continue to work with all stakeholders representing members' interests on this important reform.

Paul Zalai – FTA / APSA