The Federal Government is expected to lower the GST-free threshold on imported goods from $1000 to $20, according to major Australian retailers and state premiers. If this goes ahead, consumers could be paying 10 per cent more for online purchases.
This comes after an ever increasing number of Australian retailers have added their voices to the plea to lower the threshold; generally, local retailers are calling for it to be brought down to cover any product or service over $20. Also backing this call are the state and territory governments, who say they are losing out on crucial revenue – estimated at $1 billion per year – which could be generated and distributed for reinvestment in public services.
The states and the Federal Government will meet again on the issue next March to discuss how the levy can be imposed, given the huge number of overseas purchases arriving by air and sea at ports around the country.
Source: Herald Sun
