The Australian Made Campaign has hailed the call for changes to the GST-free threshold for goods bought online from overseas vendors as a win for common sense, good governance and fairness.
Australian Made Chief Executive, Ian Harrison explained that a tax system, which actively discriminated against Australian retailers and manufacturers, was indefensible.
Responding to the proposed changes to the GST-free threshold for goods bought online from overseas retailers, he commented that the rapid rise in online retailing required the Government to deal with the inequity in the current tax system whereby imported goods of less than $1000 value were GST exempt.
Arguing that fairness in the application of the GST system was non-negotiable for good governance, he said the contention that it may cost more to collect the GST than the revenue generated has been dispelled by the report. Even if that proves not to be the case, the Government should simply raise the GST rate on these imports as they cannot remain GST-free.
The recommended changes come from a Government taskforce set up last year to look at the problem of low value imports into Australia being GST-exempt. The report released this week suggested 'simplified GST assessment arrangements' for imports worth less than $1000.
This feature is presented by Ferret - www.ferret.com.au