Retailers' offshore GST exemption claims queried

Friday 1 April 2011 @ 10.16 a.m. | Taxation

The Productivity Commission has called into doubt the foundation of Big Retail's campaign against the GST exemption for consumers who buy from overseas using the internet.

In a paper released yesterday, the commission said that even a ''large reduction'' in the GST-free threshold of $1000 might not make a ''significant impact'' on the number of parcels caught up in the tax net.

This was because preliminary data from Customs showed the average value of parcels claiming the GST exemption was ''less than $100'', the commission said.

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