SCOTT Morrison is planning his own Mike Baird-style lockout laws by blocking Aussie shoppers access to overseas retailers that fail to collect tax revenue for the government.
From as early as July 2017, Australians may find themselves unable to access the websites of a number of their favourite overseas stores under a plan being considered by Treasury, consumer group Choice has warned.
Under the new tax regulations coming into effect next year, overseas businesses with an annual turnover of $75,000 or more will be required under Australian law to register with the ATO to collect GST on all goods sold, including purchases under the current low-value threshold of $1000.
The Federal Government is exploring the option of blocking websites that fail to co-operate using powers under section 313(3) of the Telecommunications Act 1997. The act, which allows the government and its agencies to block websites that breach Australian law, contains provisions for the protection of revenue
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“Being able to access overseas websites allows consumers to purchase products not available in Australia, making up for the failings of some domestic retailers,” Choice spokesman Tom Godfrey said.
“Blocking these sites will disadvantage Australian consumers while providing absolutely no benefit to the local economy.
“When these tax changes are implemented, consumers who rely on these stores could be denied access to niche retailers who fail to voluntarily collect GST and send it to the Australian government.”
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“This policy change threatens to get very messy very quickly,” he said.
“Overseas retailers have no obligation to comply with Australian tax laws, and we all remember ASIC’s attempt to block a handful of websites in 2014, when it accidentally took down over 250,000 sites.”
Mr Godfrey said there had been no modelling or information released by Treasury about the expected impact of changes to the low-value threshold. “There is no guarantee of economic benefit to Australia but it looks like inevitable loss for consumers,” he said.
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