State and Federal treasurers have agreed to abolish the existing $1000 threshold for GST-free purchases on online goods. The State and Federal treasurers have agreed: the existing $1000 threshold for GST-free purchases on online goods is to be abolished. From the 1st of July 2017 all goods bought online will be subject to a 10%. Treasurers agreed to apply the GST to offshore sales into the Australian market. This is a significant initiative. From the 1 July, 2017, the GST will be applied to all products and service sold by vendors into Australia. This will deliver competitive neutrality for Australian businesses, and ensure fair and equal treatment of goods and services. If goods and services would have the GST applied in Australia, then the same should apply for goods [bought and imported] from overseas.
Abolishing the tax-free threshold, as opposed to establishing a new limit, made sense claims Hockey, and added that this is about policing vendors, not punishing consumers.
Kotaku’s Mark Serrels states in the original report that “Ultimately, it will be consumers who pay the price with this new change. This, combined with the struggling Australian dollar, could herald the end of purchasing cheap online games from overseas stores.”
source and first seen at: Kotaku and MCV Pacific
