Collection Models for GST on Low Value Imported Goods - Report no. 86 - Inquiry report submission and inquiry terms

Sep 4, 2026

Collection Models for GST on Low Value Imported Goods presents the Productivity Commission’s inquiry into how GST should be collected on low value imported goods. The report explains the background to removing the historical GST exemption, the government’s legislated vendor collection model commencing 1 July 2018, and the inquiry scope covering amendment effectiveness and alternative offshore collection models. It outlines the assessment framework, consultation process, required recommendations, and the timeline for delivery to the Treasurer.

LanguageEnglish

CategoryPresentations

FormatDOCX

Pages152

Reading Time53 min

AccessFree to download

Terms of reference

Overview

Setting the scene

The legislated model

Is there a superior collection model?

The way ahead

Conclusions and recommendation

1 Setting the scene

The drive to apply GST to low value imports

The importance of online retailing

The online goods importation system and models for collecting GST

The inquiry

2 The Commission’s assessment framework

Fiscal performance

Extent of compliance and collection

Business compliance costs

Consumer burdens and disruption

Compatibility with treaty obligations

3 The legislated model

How the legislated model works

The Government’s revenue and costs estimates

Compliance and enforcement issues

Collection Models for GST on Low Value Imported Goods Productivity Commission Inquiry Report no. 86 SYMBOL 227 \f "Symbol" Commonwealth of Australia 2017 ISSN 1447-1337 (online) ISSN 1447-1329 (print) ISBN 978-1-74037-648-8 (online) ISBN 978-1-74037-647-1 (print) Except for the Commonwealth Coat of Arms and content supplied by third parties, this copyright work is licensed under a Creative Commons Attribution 3.0 Australia licence. To view a copy of this licence, visit HYPERLINK "http://creativecommons.org/licenses/by/3.0/au" HYPERLINK "http://creativecommons.org/licenses/by/3.0/au" http://creativecommons.org/licenses/by/3.0/au. In essence, you are free to copy, communicate and adapt the work, as long as you attribute the work to the Productivity Commission (but not in any way that suggests the Commission endorses you or your use) and abide by the other licence terms. Use of the Commonwealth Coat of Arms Terms of use for the Coat of Arms are available from the Department of the Prime Minister and Cabinet’s website: HYPERLINK "https://www.pmc.gov.au/government/commonwealth-coat-arms" https://www.pmc.gov.au/government/commonwealth-coat-arms Third party copyright Wherever a third party holds copyright in this material, the copyright remains with that party. Their permission may be required to use the material, please contact them directly. Attribution This work should be attributed as follows, Source: Productivity Commission, 2017, Collection Models for GST on Low Value Imported Goods, Inquiry Report. If you have adapted, modified or transformed this work in anyway, please use the following, Source: based on Productivity Commission data, Collection Models for GST on Low Value Imported Goods, Inquiry Report. An appropriate reference for this publication is: Productivity Commission 2017, Collection Models for GST on Low Value Imported Goods, Report no. 86, Canberra. Publications enquiries Media and Publications, phone: (03) 9653 2244 or email: maps@pc.gov.au The Productivity Commission The Productivity Commission is the Australian Government’s independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians. Its role, expressed most simply, is to help governments make better policies, in the long term interest of the Australian community. The Commission’s independence is underpinned by an Act of Parliament. Its processes and outputs are open to public scrutiny and are driven by concern for the wellbeing of the community as a whole. Further information on the Productivity Commission can be obtained from the Commission’s website ( HYPERLINK "http://www.pc.gov.au/" www.pc.gov.au). Canberra Office 4 National Circuit, Barton Canberra ACT 2601 GPO Box 1428 Canberra ACT 2601 Telephone 02 6240 3200 Facsimile 02 6240 3399 Melbourne Office Telephone 03 9653 2100 www.pc.gov.au 31 October 2017 The Hon Scott Morrison MP Treasurer Parliament House CANBERRA ACT 2600 Dear Treasurer In accordance with Section 11 of the Productivity Commission Act 1998, I have pleasure in submitting to you the Commission’s final report into Collection Models for GST on Low Value Imported Goods. Yours sincerely Jonathan CoppelPresiding Commissioner Terms of reference Collection Models for GST on Low Value Imported Goods I, Scott Morrison, Treasurer, pursuant to Parts 2 and 3 of the Productivity Commission Act 1998, hereby request that the Productivity Commission (the Commission) undertake an Inquiry into collection models for GST on low value imported goods. Background Historically, GST has not applied to the supply of low value imported goods, creating an uneven playing field. The Government is committed to addressing this and strengthening the integrity and fairness of our tax system. Legislation has been passed that will collect GST on low value imported goods from 1 July 2018. The legislation uses a vendor collection model, whereby vendors (including suppliers and online

FAQs

Why is GST being applied to low value imported goods?

GST has historically not applied to low value imported goods, creating an uneven playing field. The government is addressing this to strengthen the integrity and fairness of the tax system.

What is the legislated vendor collection model that starts on 1 July 2018?

The model requires vendors, including suppliers and online marketplaces, to collect GST on low value imported goods at the time of sale.

What does the inquiry scope cover?

The inquiry considers the amendments to the GST law for collecting GST on low value imported goods, including the amendments’ effectiveness, the suitability of other offshore collection models, and impacts on Australian small businesses and consumers.

Sep 4, 2026

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