ONLINE small businesses in the Far North have been given a boost with the Turnbull-Joyce Government delivering on a 2016-17 Budget measure to collect the Goods and Services Tax (GST) on items purchased online from overseas, Leichhardt MP Warren Entsch says.
“During the recent Parliamentary sittings, the Government introduced legislation to level the playing field for Australian businesses which compete with overseas businesses,” Mr Entsch said.
“The Applying GST on Low Value Imported Goods measure will extend the GST to goods imported which cost $1,000 or less.
“This will be a tremendous benefit for small businesses in our region and will encourage consumers to continue shopping with local small businesses, to help create more jobs and better opportunities in our community.
“The legislation will be debated in coming weeks ahead of a planned start date of 1st July 2017 ? this is great news and is directly in response to concerns that local businesses have been raising for some time.”
The legislation requires overseas vendors, electronic distribution platforms and goods forwarders ? many of which are multinationals ? with an Australian turnover of $75,000 or more to register for, collect and remit GST for low-value goods supplied to consumers in Australia.
“Australia will be the first country to apply GST to the importation of low value goods using this model, with jurisdictions such as the European Union moving in a similar direction,” Mr Entsch said.
Small Business Minister Michael McCormack said the Coalition Government was leading the way for low-value imported goods online.
“This legislation is another vital shot-in-the arm for small business and will help Australian retailers to grow, expand and create more jobs for Australians,” Mr McCormack said.