GST on low value imports - FTA appear before Senate Economics Legislation Committee

Friday, April 21, 2017

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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.


The Committee is due to report to the Senate by 9 May 2017.

Senate Economic Legislative Committee

Kai Lincoln - Managing Director SEKO Omni-Channel Logistics (left) and I had the privilege of representing the Freight & Trade Alliance (FTA) today, 21 April 2017, at the Senate Estimate Legislative Committee.

The committee heard a mix of views, largely aligned with the submissions available HERE

The FTA commentary centred on the the following three recommendations:

  1. Defer implementation of the low value imported goods reforms to provide industry a minimum of 12 months for "go live" after the bill receives Royal Assent.

  2. Informed compliance measures be introduced to deter fraudulent activity and to ensure that postal and cargo handling services operate on a "level playing field"

  3. We seek further engagement with compliance enforcement agencies to gain an understanding of potential implications to entities responsible for completing declarations at the border including international freight forwarders, express carriers and licensed customs brokers.

To view our opening statement, please click HERE

The group of eBay, Amazon, Alibaba and Etsy collaborated arguing for a "Logisctics" model in effect suggesting that GST be collected at the border, this being well outside of the scope of the proposed bill. 

This position was strongly contested by the Conference of Asia Pacific Express Carriers (CAPEC).

Aside from the Australian Retail Association, all other industry groups responded to the Committee with a consistent message for the need more time to implement any final solution.

The Committee will most likely finish their day scratching their head on what to do next. Do they forge ahead with the bill and the "vendor collection model", return to collecting all taxes at the border, or refer it to yet another committee to examine options?

No matter which option is taken, we remain committed to ongoing engagement with other affected  industry stakeholders and the relevant government agencies to best meet the intent of the bill.


If you require any more detail, please contact me direct on 02 99751878 or pzalai@FTAlliance.com.au


Paul Zalai - FTA / APSA

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