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Qld backs bid to tax more online purchases

Queensland says the GST should apply to more online purchases from overseas because it will boost state coffers.

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Source: AAP


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The Queensland treasurer is backing a push for the GST to apply to more goods bought online from overseas.

Tim Nicholls says the GST should apply to smaller purchases because it would help Australian retailers and generate more revenue for the states.

Currently the GST only applies to online purchases from overseas of $1000 or more, but Mr Nicholls says that threshold is too high.

He says state treasurers asked the former Labor government to consider a change eight months ago, but it put the issue in the too hard basket.

Federal Treasurer Joe Hockey has indicated he's "very willing" to discuss the issue, and that will happen during a meeting with state treasurers this week.

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"What we're saying is that it really does disadvantage Australian retailers and suppliers, because if you want to buy here in Australia you have to pay the GST irrespective of price," Mr Nicholls told ABC radio on Tuesday.

"Most other countries have a much lower threshold."

He said a change would make Australian retailers more competitive.

"And secondly it does support the revenue bases of the states."

But he said there could be some issues around the cost of collecting the tax from overseas companies.

"We've got to understand whether it costs more to collect than it raises," he said.


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