Regulation Impact Statement – Department of the Treasury
On 10 February 2016, the Government introduced the Tax Laws Amendment (Tax Integrity: GST and Digital Products) Bill 2015. Among other matters, the Bill extends the application of the Goods and Services Tax (GST) to digital products and services imported by consumers. Examples of the digital products and services that are currently exempt from the GST include:
- consultancy, accountancy and legal services;
- financial and insurance services;
- telecommunications and broadcasting services;
- online supplies of software and software maintenance; online supplies of digital content;
- digital data storage; and
- online gaming.
The measure introduces a vendor declaration system where overseas vendors will be required to register for, collect and remit GST on the digital services they sell to Australian consumers. A Regulation Impact Statement (RIS) prepared by the Department of the Treasury has been assessed as compliant and consistent with best practice by the Office of Best Practice Regulation. The RIS estimates the average annual regulatory cost on vendors at about $600,000 per annum. The OBPR has agreed to the regulatory burden estimate and associated offset.
- RIS – [
69KB] - RIS – [
223KB] - OBPR Assessment Advice – [ 151KB]
- OBPR Assessment Advice – [ 64KB]
- Deputy Secretary Certification Letter – [ 250KB]
- Deputy Secretary Certification Letter – [ 143KB]