Support for the new Australian GST changes when sending goods to Australia

As you will be aware, Australia has introduced goods and services tax (GST) legislation relating to ‘low value’ imported goods and services.

From 1 July 2018, you may be required to pay GST on ‘low value imported goods’ (LVG are valued under A$1000) when shipping to Australia.

Previously, any goods below the $1000 threshold were exempt from GST, however if you are an eCommerce business selling to consumers in Australia, chances are you are now required to pay GST.

 According to the NZTE website:
“..the party responsible for the sale will need to calculate, collect and remit the GST properly to avoid recovery actions, penalties and interest. The obligation falls to different persons depending on the transaction….When advertising goods for sale in New Zealand, exporters will need to identify the GST charges payable if the goods are being sent to Australia, which may require adjustment of ‘online price calculators.”  Check out the full article on NZTE’s website.   

 If you are selling less than $75k, you may still need to pay GST and remit this to the ATO; we recommend that you check what your specific GST requirements are with your accountant.

 If you are selling more then $75k you must register for GST, and in doing so will get an ABN number.

  You will then need to pass this ABN number with your shipping consignments.
StarShipIT supports new GST obligations
How does this new tax affect your shipping and what has StarShipIT done to support these changes?

The good news is that you can now easily provide your ABN number with all of your shipping consignments.  We now have support for both DHL and NZ Post shipments.

StarShipIT has made some changes to the Settings to support this new GST legislation as follows:

In the Settings for NZ Post and DHL, we have added in a new field; Settings>Courier>DHL/NZ Post Settings>Advanced. This new field is named Sender ABN number.

This field needs to be completed with the ABN or the ARN number of your company if you send more than 75K of merchandise.

NZPost :

GST screens

DHL

StarShipIT supports new GST tax requirements

 

Please note:  If you are exporting goods to Australia and would like to discuss these issues further, we recommend you speak to your accountant, your NZTE Customer Manager if you have one,  or Business Development Manager based in Australia.  StarShipIT is not providing legal or tax advice, but providing publicly available information to help our customers access the information they need.