New GST obligations for NZ businesses selling in Australia

Date: 13th March 2017

Do you sell goods to Australia? If so, you may be affected by new Australian tax rules. At present, goods valued under AUD$1,000 do not generally have Australian GST applied to them where they are sold into Australia directly to the end customer. This looks set to change.

man packaging parcel at desk

New Australian GST Rules

New rules will now apply from 1 July 2017 to impose Australian GST on goods valued at $1,000 or less (‘low value goods’), where the supplier’s GST turnover (on low value goods sold into Australia) in a given year exceeds the threshold ($75,000 for most entities and $150,000 for non-profit bodies).

Registering for GST in Australia

If this applies to your business, you will be required to register for Australian GST, charging Australian GST (currently 10%) and remitting it to the Australian tax system. This applies whether your customers purchase goods from you online, over the phone or in person in a retail outlet here where your business ships the goods over to Australia. It applies whether the goods are physically here in New Zealand or sourced elsewhere overseas.

For New Zealand businesses exporting low value goods to Australia, the Australian Taxation Office (ATO) is talking about a GST registration process whereby you elect to be a ‘limited registration entity’ and return GST that way.

Record keeping

Along with registering for GST, you will need to look at how your software and record systems are set up and rethink your pricing and marketing.

Read more about how to account for sales to Australia in Xero or contact us for more help.

Changes coming

The Bill hasn’t been passed yet but it looks as if it will. So if you sell low value goods to Australia and your GST turnover of low value goods sold into Australia is over or close to $75,000, please contact us to talk about how this might affect your business.

More about recent GST changes in NZ

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‘Netflix Tax’: GST on online purchases from 1st October

One click GST filing from Xero is now here!



Posted in: Alexandra, Latest News, Queenstown, Wanaka