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Australia low-value consignment relief withdrawal bumper revenues

Board of Taxation reveals AUD 760m revenues – more than four times budget following withdrawal of Low Value Imported Goods regime

In July 2018, Australia scraped the LVIG Goods and Services Tax exemption on imported B2C goods not exceeding AUD 1,000. Since then, any import sold to an Australian consumer and not exceeding AUD 1,000 is subject to 10% GST. If a non-resident seller is selling the import and had sales in excess of AUD 75,000, then they had to register with the Australian Tax Office and charge the GST at the point of sale.

The ending of the Low Value Imported Goods was primarily aimed at levelling the tax playing field for Australian resident e-commerce and high street retailers who must charge GST on all sales. Australia was amongst the first to scrap its LVIG exemption. The EU, UK, New Zealand and many others have now followed suit. Singapore low-value GST exemption will be removed in 2023.

The report of the Board of Taxation revealed that the new regime brought in AUD 760 million between July 2018 and June 2020. The original budget has been AUD 170 million.

Extending GST obligations to e-commerce platforms

The board also suggests the GST collection role of e-commerce platforms should be extended to simplifying collections and reduce any remaining fraud. Large electronic distribution platforms or marketplaces (EDPs) already collect GST.  For e-commerce platforms, This could include providing additional transaction data to the ATO, or even acting as the GST collector.  Currently, the liability for GST on LVIG’s sold using an e-commerce platform service remains with the seller.


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