GST delay for online purchases under $1K

AUSTRALIANS have been spared for another year from being slugged with GST for products bought online.

The Federal Government wants online retailers to collect GST on goods less than $1000 bought by Australians online, which has been estimated to net $300 million revenue over three years.

Online giants like eBay had warned that Aussies could be blocked from using their sites if the controversial legislation passed, while local retail groups argue its necessary for fair competition.

The Senate supported the law yesterday, but with amendments which will delay its implementation until July 1 next year.

It will also be reviewed by the productivity commission, which will look at how best to collect the tax from overseas sellers.

Representatives of Amazon, eBay, Etsy and Alibaba appeared before a Senate committee earlier this year to warn it would be costly and almost impossible for them to implement, with eBay saying they may be forced to simply block Australians from using their sites.

Yesterday a spokesman for eBay said it welcomed the productivity commission review and it would work with the Government.

National Retail Association boss Dominique Lamb (above) said the delay was disheartening but understandable as details around how the cash would be collected needed to be sorted out.

“If we don’t see these changes it’s going to mean we are less competitive than other retailers around the world,” she said.

“But it would be far worse if there’s a premature roll out.”