12 Dec 2011

GST threshold on online imports under review in Australia

1:51 pm on 12 December 2011

Australia's Federal Government has launched a retail taskforce to investigate the viability of lowering the GST threshold on online imports.

Australians are currently spending more than $4 billion a year on overseas-based websites but imports under $1000 are exempt from GST.

Retailers want the threshold lowered.

The Government says at a threshold of $100 it would cost $1.2 billion to collect $500 million worth of tax.

Assistant Treasurer Bill Shorten says the Government has set up a retail taskforce to look at tax collection costs.

The taskforce is expected to report back within six months.