GST on low-value imports given all clear

The Productivity Commission has given the all-clear for GST to be imposed on low-value imports even the collection is imperfect.

The Productivity Commission believes the federal parliament should go ahead with its legislated plan to impose GST on low value imported goods.

It says while the way it will be collected is imperfect, waiting for alternatives will not necessarily prove fruitful.

From July 2018, consumers will have to pay GST on imported goods worth less than $1000 - having been previously GST-free - with the responsibility placed on foreign suppliers to assess, collect and remit the tax.