Low value imported goods to be subject to GST

18th June 2018

The Australian Taxation Office (ATO) has confirmed that low value imported goods will be subject to GST from 1 July.

Overseas businesses that meet the GST registration threshold of A$75,000 will need to charge GST on goods that are less than A$1,000, imported into Australia and not GST-free (such as food, alcohol, tobacco, etc.).

For small businesses, this means that they will be charged GST on low-value goods that will be imported, if they are not registered for GST, or are GST-registered, but importing goods for personal use.

The ATO has reminded businesses that they will not be charged GST if they are registered for GST, import the low value goods for business use in Australia, and provide their ABN to the supplier and a statement that they are registered for GST.