2016 Budget — Business taxation measures
The 2016 Australian Government Budget includes provisions to extend the Goods and Services Tax (GST) to low value goods imported by consumers from 1 July 2017.
The measure is estimated to have a gain to GST revenue of $300.0 million over the forward estimates period. This will increase GST payments to the States and Territories by $270.0 million over the forward estimates period. The difference is due to timing of GST collections.
The intent of this measure is that low value goods imported by consumers will face the same tax regime as goods that are sourced domestically.
Overseas suppliers that have an Australian turnover of $75,000 or more will be required to register for, collect and remit GST for low value goods supplied to consumers in Australia, using a vendor registration model.
These arrangements will be reviewed after two years to ensure they are operating as intended and take account of any international developments.
Funding of $13.8 million over four years from 2016‑17 will be provided to the Australian Taxation Office to implement the measure. This change will require the unanimous agreement of the States and Territories prior to the enactment of legislation.
This follows the in‑principle agreement made on 21 August 2015 by the Council on Federal Financial Relations Tax Reform Workshop.
This update was issued on 3 May 2016 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy (including passage of the supporting legislation through the parliament) and also compliance obligations. It is recommended that expert advice be sought before taking action based upon the information presented here.
Member Engagement —
ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to ensure that the initiatives within the 2016 Australian Government budget support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-BAC Business Affairs Committee.
Further Information —
To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at email@example.com or by telephone on 1300 943 094.
This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.
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