The Federal Government is backing a push for GST to apply to all online purchases. But their Tax Reform discussion paper infers that GST may not be able to sustain our tax system in a modern world. Is this an exercise in duplicity? I think not - it highlights the inevitability that taxes on consumption will become an ever-increasing part of the tax mix as more commerce heads into the cloud
Internet shoppers have enjoyed tax exempt status for purchases less than $1,000. The Government has been pushing for the GST threshold to be dramatically lowered to $20, arguing that would bring Australia in line with the United Kingdom, Canada and the United States.Now Mr Hockey has said the threshold could be removed completely.