Ready to pay GST on absolutely everything you buy from overseas retailers? That's the plan Federal Treasurer Joe Hockey wants to pursue.
The GST-free threshold on overseas purchases sees parcels valued at $1000 or more taxed the 10 per cent, but parcels of lower value scrape by with no additional charges. Recent comments by the Federal Government could see the bar lowered to just $20, but these new comments from the Treasurer indicate that the threshold could be binned altogether.
When asked about lowering the GST-free threshold at a vote of state Treasurers next month, Joe Hockey replied that the threshold could be taken right down to $0, meaning all parcels coming into the country would attract the 10 per cent goods and services tax.
A lower GST threshold on imported goods had previously been considered to be too expensive to enforce, but according to a recent report, the government has found new technology to reduce the cost of enforcement dramatically.
We'll find out more when the Government holds its vote with other state Treasurers in mid-August. [The Age]