With Sinclair Davidson
Introduction: The Productivity Commission (PC) Discussion Paper, Collection Models of a GST on Low Value Imported Goods, suggests that the inquiry that the PC has been directed to pursue is somewhat of a fait accompli. The legislation enacting this policy change (Treasury Laws Amendment (GST Low Value Goods) Bill 2017) has already passed the parliament with broad parliamentary support.
However, the parliament’s decision to delay the implementation of this policy by one year (the original legislation introduced to parliament was scheduled to begin in July 2017) provides an opportunity for the PC to make clear the practical and philosophical problems with the legislated scheme. A clear statement that this scheme is not in the interest of consumers, is unlikely to be effective, threatens Australia’s participation in the global internet commerce economy, and casts Australia as a bad global actor in international taxation, would, in our view, have a concrete public policy impact. The parliament is capable of amending the legislation in response to this investigation, and the government has significant discretionary power to adjust or mollify its implementation.