The Australian Government has passed a law that extends the goods and services tax (currently reserved for $1000 or greater) to most low value imports starting on July 1, 2018. Exceptions to the tax include perishable goods and health aids.
Note that the impact is to taxes only (not duties) and will not vary by region. No action is required by you from a technical standpoint as Pitney Bowes is handling adding tax at checkout and all requirements to file and pay this new line item to the Australia Tax Office. Managing this change process is part of the value that Pitney Bowes brings to your international business.
We are also running campaigns this June to drive more Australian traffic to Borderfree.com, to help drive sales for all of our clients ahead of the tax increase.
What Can You Do to Prepare?
We recommend considering incorporating the change into your marketing tactics. Here are a couple of marketing promotions to consider to counter any potential impact to volume:
- Run a sale through June with a sense of urgency, such as “Shop Before Tax Goes Up on 7/1”
- Offer a 10% tax discount through the end of 2018