From 1 July 2018, 10% GST is due on all goods sold by foreign online retailers to Australian consumers. Once the non-resident e-merchant sales more than AUS$75,000 per annum, they must GST register with the Australian authorities, file and pay any tax due. It is estimated that over 3,000 foreign companies will have to register for GST on goods.
Previously, there was a AUS$1,000 low-value consignment stock exemption from GST, which effectively meant only luxury goods retailers incurred any GST.
The fines for non-compliance include a 75% administrative penalty. The Australian authorities will use a range of measures to track evasion, including tracking import information, reviewing sellers’ website and consumers’ foreign spend.
The GST reform was originally scheduled for July 2017, but resistance from the major online platforms resulted in a 1-year's delay to 2018.
