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High tax-free threshold for Australian online retailers 'unjust'

31 March, 2014

The Australian Made Campaign has expressed extreme concern at the decision by state and federal government treasurers to defer dealing with the issue of GST not applying to online purchases of imported goods costing less than $1000.

Australian Made Chief Executive, Ian Harrison, said the situation was unacceptable.

"This should not be a political issue," Harrison said.

"The $1000 threshold - below which GST is not payable on imported goods purchases online – is simply a case of Australian taxation law discriminating against Australian retailers, and through that, Australian manufacturers."

"It is a ridiculous and unsustainable policy position to maintain," Harrison said.

"State vs federal politics should not be allowed to interfere with the urgent need to remove this unfair and unjust impost on Australian businesses."

Australian Made has been calling for the abolition or reduction of the tax-free threshold since 2012.

State and federal governments met last week to deal with the issue, but were unable to agree on a way to extend the reach of the GST.