Australian retailers will have to wait another year before the GST-free threshold is removed for online purchases bought from overseas, after the Federal Government passed an amendment to the Bill, proposed by the Labor Party, for the Productivity Commission to conduct a short inquiry on implementation, as well as other GST collection models, before next July writes Dominique Lamb, CEO of the National Retailers Association.
‘While we’re disappointed for the Australian retail community right now, it’s also important to note that good governance and effective policy takes considerable time and meticulous planning, particularly one with as many complexities as this one,‘ continues Ms Lamb.
‘There’s no point rolling this out prematurely, and while this delay is far from ideal for retailers, it should at least give everyone involved enough time to prepare, and find the best ways to implement the changes.’
Come July 1, 2018, both Australian and overseas retailers will be collecting the same goods and services tax on purchases made in Australia, so it’s not a debate between bricks vs clicks, but about removing an unfair disadvantage to domestic retailers when competing with overseas retailers.
Want to know more about how you can develop an online strategy for your furnishing industry business? Stay tuned for an AFA announcement in the coming weeks.