Within our industry we engage with specific industry bodies to stay abreast of governance and/or changes within our field across a vast array of topics.
Upon receipt of the below notice we believe it warrants notice to our importers and a reminder that deferred GST can be an important tool for cash flow management for all importers. To that end we supply the ATO link and encourage your financial teams to investigate for potential fiscal benefits.
Freight & Trade Alliance (FTA) has been working closely over the past 3 weeks with the ATO on the benefits provided to importers under the current Deferred GST (DGST) scheme and the potential for further enhancement as a COVID19 relief measure.While details of any enhanced arrangement are yet to be outlined and clearly require further government consideration, we urge our importer members to register NOW for DGST taking into consideration:
NOTE: In the current economic crisis, the ATO confirmed receipt of significantly increased number applications for DGST registration. We understand that the ATO have significantly increased automated capabilities, that should process up to 500 DGST applications per day.
Current benefits of DGST
Importers registered for DGST are required to lodge their Business Activity Statement (BAS) monthly and electronically. Once approved, the import GST otherwise payable at the border is deferred until the 21st of the following month. That is, importers registered under DGST will defer the payment of GST on any importation occurring throughout the month of April, until the 21st May. The payment of GST on any importation occurring in the month of May, will be deferred until the 21st of June. And so on, every month.
IMPORTANT: The ATO will allow importers to “opt in” for 3 months and then “opt out”
Should you have any further enquiries on this subject matter please do not hesitate to contact our office directly.