Gareth Hutchens
November 27, 2013
The Age
The decision to lower the GST-threshold on imported goods worth less than $1000 has been pushed back until March next year.
That means Christmas presents bought online this year from overseas will not be subject to the tax.
State treasurers met with Federal Treasurer Joe Hockey in Canberra today to discuss lowering the threshold.
In recent weeks, Australian retailers and state premiers have increased calls for the threshold to be lowered or abandoned, saying it gives foreign retailers an unfair advantage over local retailers.
Mike Baird, NSW Treasurer, said there was no final decision on how much the GST-threshold ought to be lowered.
He also said there were “various scenarios” presented to the treasurers showing that in the first “year or two” the cost of running the program would be higher than the revenue it generates.
However, those costs will apparently fall with each year that the program continues.
“The business case … is very close to being finalised,” Mr Baird said. “It is clear that there was a lot of consensus across the room that we need to do this.”
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