The Government has released exposure draft legislation to amend the GST law to ensure products and services provided to Australian consumers are treated equivalently for GST purposes, whether they are provided by Australian entities or foreign entities.  We will continue to monitor the progress of the exposure draft legislation.

Following the release of the Federal Budget, Treasury has released anExposure Draft Tax Law Amendment (Tax Integrity: GST and Digital Products) Bill 2015 (Exposure Draft Bill).

According to the Explanatory Material, the Exposure Draft Bill will ensure that digital products and other imported services supplied to Australian consumers by foreign entities are subject to GST in a similar way to equivalent supplies made by Australian entities.

The proposed amendments:

  • make the supply of anything other than goods or real property to an entity that is not registered or required to be registered for GST potentially subject to GST if that entity is an Australian resident;
  • provide that the GST will be payable on certain electronic supplies to which the above applies, by the operator of the service through which the supply is made to the consumer rather than the actual supplier; and
  • allow for the making of regulations to provide simplified rules for registration, tax periods and GST returns for entities to which the proposed amendments apply.

Submissions on the Exposure Draft Bill close on 7 July 2015.

See Treasury media release on 12 May 2015.