Items purchased online from international retailers may be hit with GST

ONLINE shoppers beware: buying goods online may become more expensive as the government prepares to review GST exemption on items under $1000.

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THE GOVERNMENT has promised a review of the tax-free status of goods purchased over the internet from international retailers.

At the moment, goods purchased from online retailers that are worth less than $1000 are not subject to the goods and services tax.

Expensive ... internet shopping may be taxed according to local GST rates.

New Assistant Treasurer Josh Frydenberg said the issue will be raised in the context of the government’s tax white paper process in the new year in a bid to protect retailing jobs.

“I see this issue very much in the context of local jobs,” he said.

“You do want a relatively level playing field ... [and] my sense is that we are seeing local retailers with one hand tied behind their backs.”

Local jobs ... Assistant Treasurer Josh Frydenberg says the review aims to protect local retailers. Picture: Jonathan Miller

Australian retailers say the GST loophole gives their overseas counterparts an unfair price advantage and have been lobbying state and federal governments to reduce the tax-free threshold