By Linda Spencer
 Australian taxation authorities are collecting a new 10% Australian goods and services tax on overseas sales of low-value imported goods —defined as having a customs value of $1,000 (AUD) [approximately $750 USD] or less—by consumers into Australia. |
On July 1, Australian taxation authorities began collecting a new 10% Australian goods and services tax (GST) on overseas sales of low-value imported goods (LVIG)—defined as having a customs value of $1,000 (AUD) [approximately $750 USD] or less—by consumers into Australia.
What U.S. companies meeting these conditions are required to do:
- Track their Australian sales to determine whether they are made for Australian consumers and, if so, whether they anticipate that they will exceed $75,000 (AUD) [approximately $56,000 USD] per annum in aggregate. If so, they will need to choose whether to increase prices for GST or absorb the additional cost.
- Register with the Australian Tax Office (ATO).
- Pay any GST due.
Businesses/sales NOT covered by this new tax:
- Those with sales of $75,000 (AUD) or less to consumers in Australia within a 12-month period.
- Those with sales of low-value imported goods made to Australian GST-registered businesses that purchase for business use.
- Any individual sales more than $1,000 (AUD). These sales will continue to be taxed at the border.
More information, including how to be sure a distributor/customer is an Australian GST-registered business (not a consumer), is available on the Australian Taxation Office’s website here and here.
For more information, contact Linda Spencer at lindas@sema.org.