The Australian Retail Association (ARA) is pushing the importance of a GST extension to benefit local retailers.
The organisation is encouraging the government to slash the GST threshold on international purchases to zero.
It believes this would boost services in Australia and decrease benefits being reaped by international businesses in the domestic market.
The State Treasures' agreement to an extension of the GST proposes the inclusion of purchases made by global online retailers under $1000 to be discussed in Canberra this Friday.
ARA executive director Russell Zimmerman said that supporting the move will take pressure off of Australian retailers and businesses in an increasingly competitive environment.
“Extension of GST to international online purchases is crucial to the survival and growth of Australian retailers and the retail industry as a whole.
“This is about removing the anomaly and levelling the playing field for Australian-based retailers to ensure our local industry can thrive and compete effectively in what is now a global economy.”
Last month the State Premiers reportedly came to an in principle agreement to lower the Low Value Import Threshold (LVIT) below $1000.
Zimmerman has also urged the government not to hold off on making an agreement.
“The ARA considers the simplest method of collecting this sales tax is at the point of sale.
“Most international retailers already have mechanisms in place to be able to accept GST at the point of purchase, and we don’t envision that this would involve extra effort on their part, and will not incur any additional costs by the Government.
“While the ARA welcomes this long overdue extension of the GST, it is critical that the process does not stall.
“The agreeance of State Premiers must also be backed up by State Treasurers tomorrow.”