GST on low value imported goods: Australian Taxation Office - consultation on our proposed administration 

Freight & Trade Alliance (FTA) representatives met again today with Treasury, the Australian Taxation Office (ATO) and Department of Immigration and Border Protection (DIBP) representatives.

Progress of the Bill

As previously reported to FTA members, the Australian Government introduced the Treasury Laws Amendment (GST Low Value Goods) Bill 2017 into Parliament on 16 February 2017, which proposes to extend Goods and Services Tax (GST) to low value goods imported by consumers in Australia from 1 July 2017.

We have been advised that the Bill remains in the House of Representatives and is likely to be read when Senate / Parliament sits again in the last 2 weeks of March 2017. Additional information about low value imported goods is also available on www.ato.gov.au/AusGST, which will be further updated as the measure passes through Parliament.
 
FTA member scenarios
 
The ATO has agreed to review specific scenarios raised by FTA members (and their clients) and to provide advice on how to comply with the new procedures as outlined in the Bill, in particular whether a company may or may not be a "re-deliverer".

The ATO has requested that these scenarios be emailed to AustraliaGST@ato.gov.au with CC to pzalai@FTAlliance.com.au.  

The ATO will use these examples to include in their next guidance product, which includes a discussion of when a redeliverer is liable for GST on a supply.
 
Information requirements
 
The ATO has also  asked for particular feedback the Summary of the information requirements document via the feedback form on our Let's Talk page.
 
Further industry engagement
 
The next stage of industry engagement will focus on four aspects of ATO  administration of the proposed amendments:

• a draft Law Companion Guideline: GST on low value imported goods

• the information requirements under the Bill

• an alternative method for converting foreign currency amounts to Australian dollars in order to determine whether supplies are low value goods 

• an alternative method for converting foreign currency amounts to Australian dollars when calculating the GST payable on a supply under the proposed amendments.

The consultation period closes on 24 March 2017. Comments can be submitted via the feedback form on our Let's Talk page or by emailing us at AustraliaGST@ato.gov.au.