The Australian Traders Group (ATG) is calling on all sides of politics to commit to reducing the Low Value Import Threshold (LVIT) from the current $1000 limit after the federal election in September.
Spokesperson for the group and Australian Retailers Association (ARA) executive director, Russell Zimmerman, said the continued delays in reducing the threshold are impacting jobs and state government revenue.
“The Government has delayed a final decision on LVIT to after the September 14 election with the final Customs and Australia Post business cases not expected until that date,” Zimmerman said.
“Industry groups are calling for whoever is in Government to make the decision as soon as the costing reports are handed to them by the end of September.”
ATG supports NSW treasurer, Mike Baird, and Victorian treasurer, Michael O’Brien, in their calls for the LVIT issue to be fixed in the face of falling GST revenue and struggling service delivery in the states, along with struggling local retail sectors.
The group says that if a reduction to $20 in the threshold from the current $1000 collection rate begins as soon as the election is over, anywhere from $500,000 to $1 billion GST could be collected in the 2014-15 financial year, rapidly growing to well over $1 billion in the following few years.
“The ATG acknowledges the costs for collecting GST on overseas good is significant, but with the work currently being undertaken by Customs and Australia Post to reduce those costs, we are certain state governments will be in a position to meet those costs, as they will benefit from the extra revenue,” Zimmerman said.
ATG represents 11 retail industry associations, including the Australian Retailers Association, Australian Booksellers Association, Bicycle Industries Australia, Photo Marketing Association, Australian Music Association, Photo Imaging Council of Australia, Retail Cycle Traders Australia (Inc), Australian Toy Association, Australian Sporting Goods Association, Franchise Council of Australia and Snowsports Industries of Australia.
