Since new laws kicked in on 1 July last year, GST will apply to sales of low-value, imported goods valued at $1,000 or less, to consumers in Australia, in a bid to ensure that such imported goods receive the same treatment as goods purchased domestically.
According to the ATO, collections have been tracking well since the new measure kicked in.
“Revenue for the first quarter of 2018–19 tracked well ahead of budget estimates,” the ATO said in response to a question on notice from the Senate Estimates 2018–19 supplementary budget estimates.
The measure, first announced in the 2016–17 federal budget, was expected to raise $300 million over three years.
Further, as of 7 December 2018, there are 1,070 registrants in the simplified system reporting GST on low-value goods.
There are also at least 50 entities registered in the full system reporting GST on low-value goods, including Australian businesses that use offshore third parties to fulfil customer orders directly.
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day
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