On low value imported goods.
The Australian Retailers Association (ARA) has welcomed the Productivity Commission’s (PC) Inquiry Report into the collection models for GST on low value imported goods. The report supports the preferred vendor collection model along with additional measures which could increase its effectiveness over time.
The ARA supports the proposed 1 July 2018 timeline for the GST legislation to be implemented, as this legislation has been a long time coming for Australian retailers.
ARA executive director, Russell Zimmerman, said although reducing the low value threshold will provide a level playing field for Australian retailers, new and innovative models will be needed over time to improve collection.
“While we support the current Vendor Collection Model and look forward to the proposed implementation date of 1 July 2018, we believe there can still be improvements to the current collection model,” Zimmerman said.
“The ARA will closely monitor the implementation and progress of this legislation, to ensure there is a best outcome for retailers.”
The ARA has been working with the Federal and State Governments over several years, to reduce the low value threshold, ensuring fairness for Australian retailers.
“This is about fairness for Australian retailers who are facing tough trading conditions, and we know local retailers will be looking forward to the new year when these changes will take effect,” Zimmerman said.