Australian GST Reform: Cross-Border Transactions


The Australian Government has announced three GST reform measures impacting cross-border transactions, and most particularly inbound supplies made from outside Australia. If enacted, the reforms will address the following:

  • Measure 1: Extend GST to cover inbound intangible supplies made by non-resident suppliers to "Australian Consumers" (often cited in the media as the "Netflix Tax").
  • Measure 2: Reduce the need for non-residents to register for GST in Australia (to either remit GST or claim credits) as a result of business-to-business transactions which are ultimately revenue neutral.
  • Measure 3: Extend GST to cover sales by non-resident and Australian suppliers of low value goods (less than AU$1,000) which are imported via parcel. This is particularly relevant for goods sold online from outside of Australia (including sales by Australian based retailers).

Each of these measures is canvassed in detail in the below Bloomberg article. If you are interested in exploring the implications of these measures for your business, please contact us to discuss.