Board of Taxation to review on collection of GST on low-value imported goods

06 July 2021

The Board of Taxation has announced it will review the collection of GST on low-value imported goods and advise on its effectiveness.

BDO Australia Tax Partner, Fady Abi Abdallah, said the review was welcome.

“Since the introduction of the measure, on 1 July 2018, we have noticed an increase level of compliance among international suppliers,” Fady said. 

“We have also noticed an increase in activity by the Australian Taxation Office (ATO) with targeted notices sent to a range of international suppliers alerting them to their Australian GST obligations.

“The ATO activity, along with increased supplier awareness is resulting in increased supplier compliance and is assisting in levelling the playing field for Australian suppliers.

“However, many suppliers are still unaware of their Australian GST obligations and some confusion still remains, particularly in relation to re-deliverers and supplies made through electronic distribution platforms.”

Prior to 1 July 2018, GST was not imposed on supplies of low value imported goods (customs value of less than $1,000) to Australian consumers.