Changes are coming to GST and food labelling – make sure your business is ready from 1 July 2018!
Changes are coming to GST
From 1 July 2018, the goods and services tax (GST) will apply to retail sales of low value physical goods ($1000 or less) that have been imported to Australia and sold to consumers. The existing processes to collect GST on imports above $1000 at the border are unchanged.
What does this mean for my business?
If your business meets the $75,000 GST registration threshold and sells low value physical goods that have been imported, you’ll need to:
- ensure you are registered for GST
- charge GST to customers on low value imported goods (unless they are GST-free)
- lodge a return to the Australian Tax Office (ATO).
Is your business prepared for the food product labelling changes?
The new Country of Origin Labelling requirements come into play in less than 12 months – make sure you’re prepared!
Do you grow, produce, manufacture, distribute, import or sell food products? If so, your business has less than 12 months to comply with the new Country of Origin food Labelling requirements.
The two-year transition period commenced in July 2016 and the new labelling requirements are mandatory from 1 July 2018.
What do the new labels mean for your business?
The laws mean:
- Food products sold in Australian supermarkets and other retail outlets must display a label which clearly identifies where the food comes from.
- Labels on most foods grown, produced or made in Australia need to feature the symbol of a kangaroo in a triangle and indicate the percentage of ingredients that are Australian.
- Requirements for using claims like ‘Product of’, ‘Made in’ and ‘Packed in’ have been made clearer.
Resources to help you get it right
There are plenty of tools and information available to help you understand and use the new labels correctly. To help you get it right, you can:
- use the Country of Origin Labelling online tool to help you work out if you need a new label and customise your label
- access the resources available on the Country of Origin food Labelling page including the Style Guide
- go to the Country of Origin Label library to download labels for your food products
- watch the Country of Origin food Labelling tips and traps webinar series from the Australian Competition and Consumer Commission (ACCC).
These articles first appeared on business.gov.au.