But the report details how complicated it would be for GST to be collected. This includes reconfiguring computer systems to capture data and clearance processes, requiring Australia Post to be responsible for collecting revenue and making changes to cater for more GST deferrals.
Other recommendations even included having third parties collect GST, which would mean offshore websites would be responsible for collecting that extra tax.
“To streamline revenue collection, legislative arrangements could be amended to enable and encourage appropriately regulated overseas suppliers to collect GST from purchasers of low value goods at the time of purchase,” it says.
The report discusses the viability of each of these recommendations and several others.
It also admits that the potential impacts of this reform on the digital economy are “difficult to assess”.
But it also says a benefit of lowering the threshold would mean the industry would have to adapt to the large number of parcels it’s already receiving.
“Any change to the flow of cargo is a major issue for express carriers, other freight forwarders and Australia Post, given that their business models are geared to fast movement of goods through the border process.”
“The proposed reform seeks to ensure as far as possible, service delivery is not degraded. However, changing the threshold for low value goods is likely to increase the volume of non-account customers, increasing costs to administration, storage and invoicing.”
Despite the complications, Zimmerman says action needs to be taken, given the $200 million of potential revenue for states.
“I think the government will be forced to do something about it. I don’t think they can sit back and wait…the volume in the parcel industry is increasing dramatically.”
“The first place to look is the postal industry and delivery services.”
