GST changes for Low Value Goods to Australia


The start of the new Australian financial year will see the introduction of the Treasury Laws Amendment Bill (GST Low Value Goods) that was passed in parliament on 21st June 2017.

OCS Worldwide has been in positive contact with customers likely to be affected to ensure smooth compliance and welcomes contact from all shippers looking to expand their ecommerce business to Australia and think they may be affected.

Previously, Goods and Services Tax (GST) was only required to be paid when the value of the goods cost more than AUD$ 1000.00. This new government legislation means that from 1st July 2018 GST will now be charged on international items costing less than AUD$ 1000.00 when sold Business to Consumer (B2C).

International retailers selling more than AUD$ 75000 of goods annually are now required to register with the Australian Taxation Office (ATO). Once registered, businesses will receive an ATO reference number (ARN). GST must be collected at the point of sale. The amount of GST to charge will be one-eleventh of the sales price. GST returns must be periodically lodged with the ATO.

Once you have obtained an ARN we will need to inform us of this number for our customs clearance files and this must be included on the accompanying customs paperwork.

For items valued of AUD$ 1000 the same duty and tax collection will apply at the border. Items sold Business to Business (B2B) will continue to be GST exempt.

For more information of the process, exemptions and how to register please visit ATO website. You can also contact the ATO via email at AustraliaGST@ato.gov.au or directly on +61 2 6216 1111 Monday to Friday between 8.00am to 5.00pm (UTC+10:00).