Online shopping tax under consideration

22 March 2018

Online shopping tax under consideration

Image credit: Elaine Smith (Flickr)

The Federal Government is considering introducing a $2-$7 tax on overseas products bought online, according to the ABC, in a proposal spearheaded by the Department of Home Affairs.

Australians are buying more and more goods online which is increasing number of packages that require screening. The tax will supposedly balance out the cost of checking the items. The tax is already in place for products over $1000.

Approximately 40 million low-value parcels arrived in Australia last financial year which has elevated the costs associated with biosecurity, cargo and trade border activities.

“Existing cost recovery arrangements are no longer sustainable and will not support Australia’s future trading environment,” a discussion paper says, as cited by ABC.

However, not everyone supports the proposal. Liberal Democrat senator David Leyonhjelm says the tax is unnecessary.

He said: “This Government seems to have an endless capacity to come up with new taxes and increase existing taxes. We’re already extremely highly taxed and I despair at the idea that we’ll ever end up with any of our own money in our own pockets. It’s just terrible.”