The story so far
Some retail groups are calling for GST collections on all overseas purchases. Current research says the government will spend more than it makes collecting GST on purchases under $1000.
The government claims lowering the threshold will help Australian businesses compete with online stores. But CHOICE research shows most consumers shop online for convenience and access to more products. Not to avoid taxes and duties.
Treasury is currently producing a business case for lowering the threshold. We’ll be following that process closely.
In late 2013, we conducted a survey of consumers, to see if the GST claims stacked up. We found that consumers generally don’t buy online to avoid taxes. And that most consumers were saving more than 10% on online purchased anyway. [link to ‘Retailers GST campaign discredited’ page]
In October 2012, a review panel recommended lowering the GST low value threshold. Since then we've campaigned to show that the costs involved in lowering the threshold will cost more than any money made.