FTA / APSA commentary to the Productivity Commission – GST collection on low value goods

Friday, September 1, 2017

LEGISLATIVE REFORM
 
As members would by now be well aware, the Treasury Laws Amendment (2017 Measures No. 1) Bill 2017  introduces a requirement for overseas vendors, electronic distribution platforms and re-deliverers to account for Goods and Services Tax (GST) on sales of low value goods to consumers in Australia if they have GST turnover of $75,000 or more.

The intent being to ensure that imported goods with a value under $1,000 face an equivalent GST treatment to goods sourced in Australia.

Importantly, the legislation will also generate a significant quantum of GST revenue for our state governments.
 
Through formal submissions and the supply of evidence at the Senate Estimates Legislation Committee, Freight & Trade Alliance (FTA) was instrumental in achieving a delay to the reform implementation from 1 July 2017 to 1 July 2018 allowing industry sufficient time to introduce revised systems and processes to comply with changes.


For further details please refer to refer to REPORTS & SUBMISSIONS

PRODUCTIVITY COMMISSION

During the above referenced period of advocacy, FTA did not consider or submit any detail on alternate models.
 
Following the outcome to defer implementation to 1 July 2018, FTA and the Australian Peak Shippers Association (APSA) have further engaged with members and key industry stakeholders in response to the Productivity Commission's request for further detail on alternate models.
 
We note that the Productivity Commission has also sought feedback and received submissions from FTA / APSA members including third party marketplaces (Alibaba and Ebay), WiseTech Global and logistics service providers. It is important to note that the commentary provided by FTA / APSA does not seek to supplant or compete with the views presented by members direct to the Productivity Commission.
 
For further detail, please refer to:
 
FTA / APSA Commentary to the Productivity Commission
Public Submissions to the Productivity Commission

KEYNOTE PRESENTATION
 
While FTA / APSA will continue involvement in the PC review, members and their clients are well advised to commence preparation for the reforms in line with the 1 July 2018 implementation timeframe.
 
As a part of our operational support for members, we are delighted to advise that we are to host a panel of experts in Melbourne on 6 September 2017 as a part of our CPD – Border and Biosecurity Compliance Program:
 

  • David Penpraze (Associate Partner - Adviser Services, Specialist - Taxation, Crowe Horwath),

  • Sarah Marslen (Assistant Director Trade Revenue Policy, Department of Immigration and Border Protection) and

  • keynote presenter, Robert Fais (Senior Technical Specialist, Indirect Tax, Australian Taxation Office).


Robert Fais is a UK qualified tax lawyer and has specialised in indirect tax since 1998. In practice, he represented Google during its establishment in Ireland and acted for Apple on the launch of iTunes outside the US and for Amazon when it first expanded into the European Union. From 2015 until shortly before joining the ATO a Senior Technical Specialist, he was UK and Australia Indirect Tax Manager for Amazon.
 
Robert will be addressing the following key issues:

1. Australia's vendor model

  • Defining low value imported goods

  • Suppliers for GST purposes

  • Consumer and business purchases


2. Information for Transporter and Customs Brokers

  • Invoicing and customs information

  • DIBP systems


3. Registration, returns and payments

4. Compliance
 
REGISTER NOW

15 CPD points - program available HERE 
 

 
TECHNICAL SUPPORT


As outlined in our weekly report from 15 August 2017, FTA hosted a detailed consultative forum examining implementation issues for 1 July 2018 involving the Department of Immigration and Border Protection, the ATO and Crowe Horwath.

FTA is pleased to advise that Crowe Horwath has subsequently been commissioned to act as an interface between the ATO and members (and members' clients) on this important reform. As a part of this engagement, FTA members will receive up to 30 minutes free of charge from the Crowe Horwath GST experts.


For further detail contact David Penpraze  - Crowe Horwath - 02 96191830 David.Penpraze@crowehorwath.com.au

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