On July 1, Australian taxation authorities began collecting a new 10 percent Australian goods and services tax (GST) on overseas sales of low-value imported goods (LVIG)—defined as having a customs value of AU$1,000 (approximately $750 USD) or less—by consumers into Australia.

What US companies meeting these conditions are required to do:
    •    Track Australian sales to determine whether they are made for Australian consumers and, if so, whether they anticipate that they will exceed AU$75,000 (approximately $56,000 USD) per annum in aggregate. If so, they will need to choose whether to increase prices for GST or absorb the additional cost.
    •    Register with the Australian Tax Office (ATO).
    •    Pay any GST due.

Businesses/sales NOT covered by this new tax:
    •    Those with sales of AU$75,000 or less to consumers in Australia within a 12-month period.
    •    Those with sales of low-value imported goods made to Australian GST-registered businesses that purchase for business use.
    •    Any individual sales more than AU$1,000. These sales will continue to be taxed at the border.

More information, including how to be sure a distributor/customer is an Australian GST-registered business (not a consumer), is available on the Australian Taxation Office’s website here and here.
 
For more information contact SEMA’s Linda Spencer at lindas@sema.org.