UPDATE - Treasury Laws Amendment (GST Low Value Goods) Bill

Legislative process
 

The Treasury Laws Amendment (GST Low Value Goods) Bill was presented to the House of Representatives yesterday (Wednesday, 14 June 2017). With the government having a majority, the Bill was successfully read for a third time and will now be brought before the Senate in coming days.

Following our UPDATE on the Senate Economics Legislation Committee recommendations, it is important to note that Labor has maintained their position for an implementation delay with analysis and comparison of alternative implementation models – refer HERE.

Supporting the position of the opposition, there remains considerable industry concern about the short lead time associated with a 1 July 2017 implementation.
 
Preparation in the event of a 1 July 2017 implementation
 
While we await the outcomes of the Senate process, one significant milestone has been achieved in the form of the Integrated Cargo System (ICS) changes implementation this week with the ability to "flick the switch" on 1 July 2017  should the Bill be passed into legislation – refer HERE for the official ICS notes.
 
Freight & Trade Alliance (FTA) has advised the Department of Immigration and Border Protection (DIBP) that while major freight forwarding software providers have been briefed and have prepared changes, many industry participants will not in a position to deploy tested systems or implement revised processes by 1 July 2017. To that end, FTA continues to advocate for an appropriate delay as a part of ongoing liaison with key government and industry stakeholders.
 
In parallel to continuing our advocacy for an appropriate delay to implementation, FTA has maintained liaison with DIBP, the Australian Taxation Office (ATO) and Treasury officials about compliance measures in the unlikely event of a 1 July 2017 implementation. Should this be the outcome FTA will disseminate further detail.
 
In the interim, we encourage members to familiarise themselves with two new draft Law Companion Guidelines about GST on cross-border supplies published by the ATO.
 
It is important to note that the guidelines are based on the Treasury Laws Amendment (GST Low Value Goods) Bill 2017 and that this information may change if the Bill is not enacted as tabled.
 
Draft Law Companion Guideline LCG 2017/D4: GST on supplies made through electronic distribution platforms is about when an EDP operator (such as the operator of an online marketplace) is responsible for GST on supplies of:

• digital services and digital products under enacted law which applies from 1 July 2017, and

• low value imported goods, under the Bill currently before Parliament.

 
Draft Law Companion Guideline LCG 2017/D5: When is a re-deliverer responsible for GST on a supply of low value imported goods? explains how the proposed amendments for GST on low value imported goods will apply to re-deliverers.  
 
These draft guidance products complement the draft Law Companion Guideline that the ATO published earlier this year, Draft Law Companion Guideline LCG 2017/D2: GST on low value imported goods.
 
FTA will provide feedback to the ATO on the guidelines. To contribute to this process, we encourage members to send comments to pzalai@FTAlliance.com.au
 
Paul Zalai – FTA / APSA