THE Australian Retailers Association (ARA) is looking forward to the low-value import threshold (LVIT) GST changes from July 1, as it will create a fairer tax system and put local retailers on a level playing field.
Russell Zimmerman, executive director of the ARA, said the ARA had been lobbying this issue for several years as this new legislation will provide a significant lift for the local industry.
“For too long, Aussie retailers have been at a pricing disadvantage to overseas retailers,” Mr Zimmerman said.
“We’re hoping this tax fairness will give a much-needed boost to the industry and we will continue to work with the Government to ensure a 100 percent collection rate.”
As the GST has not previously applied to purchases under the A$1000 threshold, the ARA reminds overseas retailers that this legislation took effect on Sunday 1 July 2018. This move follows the successful introduction of measures in July 2017, which saw GST applied to LVIT digital products and services purchased from overseas.
“This, in combination with the extended GST application to tangible products and services under the LVIT will help to level the playing field for local retailers,” Mr Zimmerman said.
“This will provide a fairer trading environment for our local retailers and a welcome boost to our members and the broader retail industry.”
The ARA has been in close communication with the ATO during the lead-up to the implementation of LVIT GST and will continue to work with Government and the ATO to ensure the best possible outcome for the local retail industry, including proposing additional collection models to improve compliance.
For more information, retailers can access the ATO website here.
About the Australian Retailers Association:
Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and 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 368 041.