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State politics blocks Australian GST foreign threshold cut

  • VAT
  • 07 February 2014 | Richard Asquith

State politics blocks Australian GST foreign threshold cut

Stalled plans to reduce the Australian GST import threshold now hinges on agreement by the States.

It is believed that the Western Australian state is blocking proposals to reduce the current AUS$1,000 GST-free threshold as part of a wider attempt to have a resettlement of federal GST revenues.  Many Australian retailers have campaigned to have the significant tax benefit for foreign online retailers reduced.  However, the Western Australian government is seeking to re-open the last agreement of the state division of Australian Goods and Services Tax.

Australian online retail is growing at over 10% per annum, and currently represents over 6% of all retail sales.  It has been proposed that the current GST threshold be cut down to AUS$20, which could raise over AUS$1 billion


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.