0

Shopping cart

Time To Rethink Unfair $1,000 Online GST-Free Threshold

Share on linkedin
Share on facebook
Share on twitter
Share on email

The Australian Chamber of Commerce and Industry has today called for a major rethink of the current $1,000 online GST-free threshold that unfairly excludes items bought from overseas sellers placing domestic sellers at a competitive disadvantage. The Chamber supports inclusion of the issue in the upcoming tax white paper process, as foreshadowed by new Federal Assistant Treasurer The Hon. Josh Frydenberg MP, and would like to see the threshold lowered or abolished.

John Osborn, ACCI Director of Economics & Industry Policy, said “lowering the threshold is a case of tax equity and fairness. It’s not a case of online versus bricks and mortar retailers or a tax grab.”

“The current system gives preferential treatment to overseas sellers and places Australian businesses – including online retailers and small businesses – at an unfair competitive disadvantage.”

“The original rationale for the threshold of high cost collection is rapidly fading as an issue as technology improves and other comparable countries lower or remove their exemptions.”

“We should ideally be lowering or abolishing the GST-free threshold once a suitable cost-benefit model can be found.”

Kate Carnell AO, ACCI CEO, said “a significant proportion of lower value parcels come from a small number of large foreign companies that could easily collect and remit GST to the Australian government.”

“A simple solution can be found to this issue as long as the political will for reform exists across the political divide.”

“This is an issue business would like to see bipartisan support for and we expect the Federal Opposition and the government will work together to secure a timely solution.”

Share on linkedin
Share on facebook
Share on twitter
Share on email

Subscribe

The Australian Business Executive (The ABE) provides an in-depth view of business and economic development issues taking place across the country. Featuring interviews with top executives, government policy makers and prominent industry bodies The ABE examines the news beyond the headlines to uncover the drivers of local, state, and national affairs.

All copy appearing in The Australian Business Executive is copyrighted. Reproduction in whole or part is not permitted without written permission. Any financial advice published in The Australian Business Executive or on TheABE.com.au has been prepared without taking in to account the objectives, financial situation or needs of any reader. Neither The Australian Business Executive nor the publisher nor any of its employees hold any responsibility for any losses and or injury incurred (if any) by acting on information provided in this magazine. All opinions expressed are held solely by the contributors and are not endorsed by The Australian Business Executive or TheABE.com.au.

All reasonable care is taken to ensure truth and accuracy, but neither the editor nor the publisher can be held responsible for errors or omissions in articles, advertising, photographs or illustrations. Unsolicited manuscripts are welcome but cannot be returned without a stamped, self-addressed envelope. The publisher is not responsible for material submitted for consideration. The ABE is published by Romulus Rising Pty Ltd, ABN: 77 601 723 111.

© 2019 - The Australian Business Executive. All rights reserved.