Thread: July the 1st 2018 GST On Low Value Imported Goods

I agree with this but how are they going to know which packages were paid for prior to 1st July if the package finally lands in Australia mid August, along with 1000 others which were purchase mid July?

Because the onus will be on the purchaser to prove pre-July 1 purchase.

Originally Posted by FenceFurniture

Because the onus will be on the purchaser to prove pre-July 1 purchase.

The ATO and customs are going to be busy girls and boys for the next couple of months if they are going to check every purchase to see if it was paid for pre 1 July.

All of the difficulties that we have raised are what lead me to think that the whole thing might be being set up to fail. "Sorry Gerry, we tried - too hard".

If it's not a deliberate move then it really has been very poorly thought through by people earning very large salaries......(and it's so easy to see the problems that will arise).

Here’s a thought. If it good enough for the Govt to say to overseas companies “if you don’t sell into Australia over $75000 worth of goods you don’t have to collect GST” why can’t that apply to Australian small businesses?

Originally Posted by Lappa

Here’s a thought. If it good enough for the Govt to say to overseas companies “if you don’t sell into Australia over $75000 worth of goods you don’t have to collect GST” why can’t that apply to Australian small businesses?

Because the govt needs to collect huge amounts of revenue so they can run the country, spend it on services and then waste the rest.

Originally Posted by FenceFurniture

All of the difficulties that we have raised are what lead me to think that the whole thing might be being set up to fail. "Sorry Gerry, we tried - too hard".

If it's not a deliberate move then it really has been very poorly thought through by people earning very large salaries......(and it's so easy to see the problems that will arise).

Pretty typical of when government does anything really, they always seem to make a botch of it and then slowly iron out the bugs because they never executed it properly in the first place.
I suppose from their point of view if they catch most of the revenue on the way with X percent slipping through the holes in the net they will consider it a success.
Maybe they will make it self regulating by imposing penalties like they do with other tax not declared to scare people into voluntarily complying?
Be interesting to see what happens but I doubt they will reverse it

Originally Posted by Lappa

Here’s a thought. If it good enough for the Govt to say to overseas companies “if you don’t sell into Australia over $75000 worth of goods you don’t have to collect GST” why can’t that apply to Australian small businesses?

Isn't that how it works now (no collection, but also no rebates on GST paid)? I thought it was.

Just how the hell are customs going to know which business has got the 75k limit and when?

Are they going to have a magic calculator that adds up all the imports from Bodgy Harry located in Botswana?

They can't even tell when a HUGE business in Australia is dudding them of $2 billion in taxes and have 1000 employees (i.e. all the dotcoms), let alone some small exporter from Nanjing!

This whole thing stinks like some monty python charade.

If you are a rabid believer in conspiracy theories, like me, then this could be the beginning of a wider "thing".

What happens, as FF pointed about above, that it becomes All Too Hard (because as he said, it wasn't set up to fail, was it....)

Perhaps they will simply state that ALL parcels inbound need to be registered for GST. Not just businesses. All. Even the so-called Birthday Gifts from Uncle Bob.

Everything worth more than zero needs to have a code/number/QR issued by the ATO before its allowed in. To get it, one must preregister their details with the ATO. The sender AND the buyer (who being an Aust citizen will have a TFN).

That way, when a parcel comes in for me, they will KNOW who its being sent to and from whom. They have also pre-collected their GST as either the merchant has remitted it (as a payment using the new instant payment system PayID) or I have logged onto the BigBrotherPortal and paid it directly (again, with PayID).

Tin foil hats!

.... Yours papers are NOT in order.... (!!!!)

Interesting to read all the comments, but they all raise problems from the consumer trying to import items and not from the government and ATO side of things.

Having read the ATO website and the Productivity Commission's report on this I think within a 6 months period all imports will either have GST applied or the hassle of importing small items without GST isn't worth it.

So far the ATO and Customs are talking about educating overseas businesses about the new requirements and they are not yet talking about enforcement.

Some of the not well known enforcement powers are Geo blocking overseas sites through Australian ISP's, which is made even easier with the NBN.

Customs may also charge new fees for handling, holding and inspection imports re GST liability and delay imports from non complying overseas sellers so it may not be worth the wait and additional expenses until you can prove that no GST was payable.

So don't worry about Gerry Harvey as the new system is here to stay and other countries are looking closely how they can follow suit.

Peter.

Originally Posted by woodPixel

Perhaps they will simply state that ALL parcels inbound need to be registered for GST. Not just businesses. All. Even the so-called Birthday Gifts from Uncle Bob.

Actually the Productivity Commission recommended that all overseas suppliers that register for GST be allocated a unique code for use on their parcels so that their parcels will not be held up for verification.

Peter.

Originally Posted by FenceFurniture

Isn't that how it works now (no collection, but also no rebates on GST paid)? I thought it was.

It is not mandatory but you have the option to not collect it if you trade under the threshold figure. But as you say you can’t claim it either so I suppose it depends on how high your gst related overheads are to which way you choose to go

Originally Posted by FenceFurniture

Because the onus will be on the purchaser to prove pre-July 1 purchase.

So in a big warehouse they are going to hold the parcel and notify the recipient that they need to provide evidence that the purchase was made pre-July 1 before it will be released?

How does the notification process work? The parcel will only have my name and address (actually works address). Do they send a letter to advise my parcel needs certification.

Do I email through my invoice (not tax invoice) showing a pre-July 1 purchase was made. The invoice is fairly basic.

I hate to think of this process playing out on each of the millions of packages coming in.