GST and online purchases

This week the Labour led government introduced an omnibus Bill to Parliament that when passed into legislation will, among other things, collect GST on low value imported goods.

 The GST change will apply to imported goods valued under $1,000. The target is online shoppers who to date have not paid GST on their overseas purchases. They will now find those purchases cost 15% more as from 1 October next year.

The government has couched the new legislation in the context of targeting global companies like Amazon, saying, “if they want to do business here they must follow the rules like everyone else”. The reality is they have been following the rules. It’s the rules that have changed.

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