THE GOVERNMENT has promised a review of the tax-free status of goods purchased over the internet from international retailers.

At the moment, goods purchased from online retailers that are worth less than $1000 are not subject to the goods and services tax.

Expensive … internet shopping may be taxed according to local GST rates.
Source: News Limited

New Assistant Treasurer Josh Frydenberg said the issue will be raised in the context of the government’s tax white paper process in the new year in a bid to protect retailing jobs.

“I see this issue very much in the context of local jobs,” he said.

“You do want a relatively level playing field … [and] my sense is that we are seeing local retailers with one hand tied behind their backs.”

Local jobs … Assistant Treasurer Josh Frydenberg says the review aims to protect local retailers.
Source: News Limited

Australian retailers say the GST loophole gives their overseas counterparts an unfair price advantage and have been lobbying state and federal governments to reduce the tax-free threshold