ARA calls on the Productivity Commission to widen the net for GST

THE Australian Retailers Association (ARA) has put forward a submission to the Productivity Commission (PC) inquiry into Collection Models for GST on Low Value Imported Goods.

The submission supports the preferred Vendor Collection Model along with additional measures which could become more effective collection models over time.

The PC is tasked with investigating the best model for collecting GST on tangible offshore purchases under $1000 AUD. The changes to GST are set to come into effect from 1 July 2018, ensuring fairness for Australian retailers.

Currently, the PC supports a Vendor Collection Model where the overseas retailer collects the GST at the time of purchase. The ARA supports this as a first step and is calling on the PC to also consider additional models to ensure greater efficiency.

ARA Executive Director Russell Zimmerman said the GST changes were important for levelling the playing field for Australian retailers.

“This is about fairness for Australian retailers who are facing tough trading conditions, especially with overseas competitors going untaxed up to now,” Mr Zimmerman said.

“We support the Vendor Collection Model, but we also believe it is important to look at other models to increase the efficiency of GST collection.”

The submission calls on the PC to consider allowing GST to be collected by post and transport companies as international agreements become effective. This in combination with the Vendor Collection Model would achieve close to 100 per cent compliance over time.

“Retailers are looking forward to these changes being implemented from July 1 next year, but concerns remain about the effectiveness the amount of tax collected,” Mr Zimmerman said.

“Changes in technology over the next few years will allow post and transport companies to also collect the GST from overseas purchases. These transporters should be responsible for tax and excise on the items they are transporting.”

“We see this as a very effective way to level the playing field for Australian retailers.”

To view the ARA’s submission to the Productivity Commission Inquiry on Collection Models for GST on Low Value Imported Goods, please click here.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 

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