GST and importation of low-value goods

From 1 July 2017, GST will be imposed on goods imported by consumers, regardless of the goods’ value. The GST liability will be imposed on overseas suppliers, using a vendor registration model. This means suppliers with Australian turnover of $75,000 or more will be required to register for, collect and remit GST for all goods supplied to consumers in Australia.

These arrangements will be reviewed after two years to “ensure they are operating as intended and take account of any international developments”.

GST small business taxpayers: election to use cash basis

From 1 July 2016, the Government proposes to extend the option for taxpayers to use the cash basis of accounting for GST to small businesses with an annual turnover of less than $10 million. Such entities would be able to account for GST on a cash basis and pay GST instalments as calculated by the ATO.

Change to GST for Overseas Business

From 1 October 2016, overseas businesses supplying Australian businesses do not need to register for GST if they:

  • Only make GST-free supplies through an enterprise carried on outside Australia
  • Have a business presence in Australia of less than 184 days in a 12 month period
  • Have a GST turnover below the GST registration threshold of A$75,000 (because certain supplies will no longer be included in the GST turnover)