As of 01 July, overseas purchases under $1000 will now be subject to the GST, to help level the playing field for local retailers.
The Australian Retailers Association (ARA) has been lobbying for the change for many years and will work with the government to ensure 100 per cent collection rate on the tax.
“For too long, Aussie retailers have been at a pricing disadvantage to overseas retailers,” Russell Zimmerman, executive director of the ARA said in a statement. “We’re hoping this tax fairness will give a much-needed boost to the industry and we will continue to work with the Government to ensure a 100% collection rate.”
The legislation follows the implementation of the GST on digital products and services purchased from overseas, which took effect July 2017.
“This will provide a fairer trading environment for our local retailers and a welcome boost to our members and the broader retail industry,” Zimmerman said.
Retailers are encouraged to visit the ATO's website for more information.