Federal Budget 2016-17 | GST On Import Of Low Value Goods

By admin - May 4, 2016

From 1 July 2017, GST will be applied to low value imports of goods by Australian consumers. This confirms an announcement in August last year.

This measure is estimated to add $300m to GST revenue over the next four years and will align GST treatment of low value goods sourced both domestically and internationally. 

Currently, goods imported into Australia with a customs value that does not exceed $1,000 are not subject to GST. We understand that the $1,000 threshold will be removed altogether.

The new measure will require offshore vendors that have an Australian annual turnover of $75k or more to register for, collect and remit GST for supplies of low value goods to consumers in Australia.   

This is in line with the model adopted for the proposed ‘Netflix Tax’, which will require offshore suppliers to register and account for GST on the supply of things other than goods and real property to Australian consumers. 

The low value imported goods and the Netflix Tax measures are intended to apply to offshore vendors from 1 July 2017. 

It will be critical for our international clients to ensure that they have appropriately assessed their requirement to register for and charge GST, and that their systems and processes are updated to ensure compliance with the new legislation.

Contact our experts

Other articles


Top of Page

 Back to News


Rob Southwell


Managing Partner and Partner – Private Clients Group

> View profile

John Brazzale


Partner and National Chairman

> View profile

Michael Minter


Managing Partner

> View profile

Bryan Hughes



> View profile

Tom Verco


Managing Principal - Private Clients

> View profile

Ross Walker


> View profile

Partnership fraud


Paperwork and independent advice saves partnerships from fraud

Discover more

Kia Ora Horse Stud


Pitcher Partners fills a Financial Manager gap to keep the business on track

Discover more

Fuel Injection Company Administration


A fuel injection company began life as an Australian public company before being acquired by a UK publicly listed company while in the research and development stage of a “green...

Discover more

@PitcherPartner Many respondents of our 2018 Legal Firm Survey suggested they would consider restructuring their firm to obtain a c… https://t.co/BS0KQvVezW