GST collection on overseas goods at 300% of forecasts

GST collection for low value imported goods is tracking at 300 per cent of forecasts, as overall GST collection continues to grow.

       

 

Since new laws kicked in on 1 July last year, GST will apply to sales of low-value, imported goods valued at $1,000 or less, to consumers in Australia, in a bid to ensure that such imported goods receive the same treatment as goods purchased domestically.

Deputy Commissioner Tim Dyce said latest revenue figures show that digital marketplaces and lower value international online sales were not an impossible nut to crack.

“The digital services measure has already achieved $272 million GST in the first year or 180 per cent ahead of forecast. We’ve collected $81 million from the low value imported goods measure in the first three months of operation, already above our full year revenue estimate of $70 million. We’re tracking at over 300 per cent of forecast,” said Mr Dyce.

“There was a lot of discussion prior to their introduction about whether these kinds of measures could possibly work, and in many ways it is the most significant change in the way we have collected GST since its inception almost exactly 20 years ago.

“Not only have we had high levels of registration for these measures and well above forecast revenue, we’ve even had feedback from some online sellers that the registration has improved their business processes and given them greater insight into their sales performance.”

The measure, first announced in the 2016–17 federal budget, was expected to raise $300 million over three years.

The ATO’s GST administration annual performance report for 2017–18 showed that the agency raised $63.1 billion in GST cash, 5.5 per cent higher than in 2016-17.

A further $3 billion in GST liabilities was raised through the ATO’s direct compliance activities – a 5.6 per cent increase on last year’s outcome. The Department of Home Affairs raised a further $31.1 million through its compliance activities.

 

Tax&Compliance Reporter
28 March 2019
accountantsdaily.com.au

 

Latest Accounting News

ATO releases JobKeeper alternative test

The alternative decline in turnover test rules for the JobKeeper payment scheme has now been registered by...

Read More

Our website, your resources

Coronavirus resources have been added to the many others we supply our clients.  Resources such as many...

Read More

Covid-19 resources

Multiple sources of help and further explanations are available below regarding the relief packages and...

Read More

More coronavirus support for landlords, commercial tenants

More state governments are pledging to support tenants and landlords through the coronavirus pandemic by...

Read More

Jobkeeper Fraud warning

AFP teams up with ATO, Treasury in COVID-19 tax fraud taskforce. The Treasury has confirmed that it will be...

Read More

Boosting cash flow – ATO

Beginning the April 29 2020 BAS based payments began to flow from the ATO to small businesses across...

Read More

Temporary Working from Home Expenses Rule

The Australian Taxation Office has announced special arrangements this year – and it affects everyone...

Read More

Minimum Pensions Halved – 2020 & 2021

Retirees have support to preserve their superannuation benefits by changing their minimum pension.   ...

Read More

ATO releases JobKeeper alternative test

The alternative decline in turnover test rules for the JobKeeper payment scheme has now been registered by...

Read More

ATO extends initial JobKeeper payment deadline

Employers looking to enrol for the first two JobKeeper fortnights have now been granted a further...

Read More

Now I’m working from home, what can I claim?

As more people are now working from home many are wondering what can and can’t be claimed and what records...

Read More

COVID-19: Early Childhood Education and Care Relief Package

From Monday 6 April additional support for Early Childhood Education and Child Care Services and their...

Read More