In essence NZ Customs suggests allowing more low value goods to be imported without GST or other customs charges applying.
This is interesting timing given Australia is reviewing whether they should be tightening the rules for duty free imports to protect domestic retailers who say they are unfairly prejudiced by the ability of consumers to buy low value products from offshore internet sites like Amazon etc.
From a simplicity perspective the NZ Customs proposal is appealing. The current threshold works in an unnecessarily complicated way.
Nevertheless, as consumers make greater use of the ability to buy goods directly from overseas I can well imagine rising pressure from our retailers to remove or at least reduce the threshold here.
Barrister, Director and Consultant specialising in tax, family enterprise governance and succession, helping start ups and entrepreneurial enterprises grow safely and international expert on value added tax policy and implementation.