House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Applying GST to low value imported goods

1.182 This Schedule is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

1.183 Schedule 1 to this Bill amends the A New Tax System (Goods and Services Tax) Act 1999 to ensure GST is payable on certain supplies of imported low value goods that are brought to consumers in Australia.

1.184 The reforms:

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make supplies of goods with a customs value of $1,000 or less connected with the ITZ if the goods are acquired by a consumer and brought to the ITZ with the assistance of the supplier. This ensures that such supplies by overseas suppliers are subject to the GST if the goods are acquired by a consumer and are brought to Australia;

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treat the operators of electronic distribution platforms as the supplier. If an offshore supply of low value goods is acquired by a consumer through an electronic distribution platform and brought to Australia with the assistance of the operator or the supplier, for GST purposes the operator of the platform is treated as having made the supply;

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allow non-resident suppliers and redeliverers of low value goods that are acquired by consumers and are brought to Australia to elect to be limited registration entities; and

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prevent double taxation by making importations non-taxable importations if they have had GST paid on them as low value goods supplies.

Human rights implications

1.185 This Schedule does not engage any of the applicable rights or freedoms. The amendments are broadly an integrity measure that ensures consumption of low value goods by Australian consumers are subject to comparable rates of taxation, regardless of where the supplier resides.

Conclusion

1.186 This Schedule is compatible with human rights as it does not raise any human rights issues.