Sporting goods sector welcomes potential fall in GST threshold for overseas online shopping

The Australian Sporting Goods Association (ASGA) has welcomed Federal and State Leaders support to charge the goods and services tax (GST) for overseas online purchases under $1,000.

With a statement from the current National Leaders Retreat expressing in principle agreement to broaden the GST to cover overseas online purchases under $1,000 - a threshold as low as $20 is being contemplated as the point where the GST would apply.

Assistant Federal Treasurer Josh Frydenberg told the ABC that $20 threshold was being “worked out between the (Federal, State and Territory) treasurers” explaining that Australia is currently "an outlier" by exempting such expensive imports from consumption taxes.

He added “in the United Kingdom they apply the GST to goods and services bought overseas online from 15 pounds; in Canada the threshold is 20 Canadian dollars; in the United States they apply their GST or VAT equivalent to all goods bought online from overseas.

"So, at $1,000, the Australian threshold has really been out of sync with the rest of the world."

Welcoming move, ASGA Executive Director Shannon Walker stated “(the) statement from the Prime Minister and State Premiers is an important next step in reducing the Low Value Threshold and ensuring overseas retailers do not have an unfair advantage over Australian retailers.”

 “ASGA has long been working with the Federal and State governments to reduce the low value threshold (LVT) and provide a level playing field for Australian retailers (so) we’re very pleased the PM and State Premiers have so publically agreed with our stance.

“After four years of consultations, reviews and studies, it is well past time this issue was fixed. Clearly the LVT was an oversight, put in place when the GST was first introduced and well before consumers starting shopping online in ever-increasing numbers.”

Previous concerns that reducing the low value threshold to collect GST on goods purchased overseas would cost more than it collects, appear to no longer apply with new technology available for use by Customs and Australia Post.

In addition, ASGA has suggested that overseas retailers collect GST at point-of-sale, at their own cost, just like Australian retailers.

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