By 2014, the online shopping rates will carry GST on overseas buys which is believed to be about $20. The current threshold for GST free transaction is $1000. After discussion with the Treasurer and the state treasurers in Canberra, Mrs Osmond revealed that the state and the federal government have agreed upon this decision.
Effect of GST
If GST taxes are imposed on online shopping, the state governments could share about one billion dollars or even more, in GST funds. According to the NSW Treasurer, there was a positive discussion and a lot consensus across the hall.
Meeting in March
The state and the federal government will be again meeting March to discuss about the amount of levy to be imposed. Hockey informed that the collection cost would be more than the revenue. However, Mrs Osmond predicted that the collection cost would be 34 million dollars and the revenue would be 997 million dollars.
As of now, the information known is that the tax is about to get bigger next year. The domestic and international online stores have a 20% increase in sales due to Christmas and next year one of them will have GST tax attached to the invoice. According to Ms. Osmond, it is like closing a tax loophole that was noticed long back because the online shopping was not very intense in the past.