As members would by now be well aware, the Treasury Laws Amendment (2017 Measures No. 1) Bill 2017 proposed that overseas vendors, electronic distribution platforms and goods forwarders account for Goods and Services Tax (GST) on sales of low value goods to consumers in Australia if they have GST turnover of $75,000 or more. The intent of the Bill is to ensure that low value goods face an equivalent GST treatment to goods sourced in Australia. Importantly, the legislation will also generate a significant quantum of GST revenue.
Following last week's REPORT on the House of Representatives process, we can confirm that the Senate earlier today (Monday 19 June 2017) passed an amended version of the Bill.
Aligned with the key recommendation from the Freight & Trade Alliance (FTA) advocacy, formal submissions and appearance before the Senate Economics Legislation Committee, we are pleased to advise that the Senate has included an amendment to delay the commencement of the legislation until 1 July 2018.
This amendment occurred after Labour and the Greens voted together on the delayed start
FTA - KEY RECOMMENDATION
FTA - SUBMISSION
FTA - BEFORE THE SENATE ECONOMICS LEGISLATION COMMITTEE
FTA - REFERENCED IN THE LABOUR MEDIA RELEASE
The other amendment requires the Productivity Commission to hold an inquiry into the effectiveness of the proposed amendments and whether other models might be suitable. The Productivity Commission must report its findings by 31 October 2017 – for further detail please refer HERE
We anticipate that the Productivity Commission findings will form the basis for further political discussion and may result in amendments being proposed. FTA will continue to lead the advocacy on this important reform and will keep members up to date on developments.
Paul Zalai – FTA / APSA