Aus Gov's Proposed Parcel Tax Might See You Paying an Extra $5 for Items Purchased Online

Online shopping in Australia could become a whole lot more expensive.

First, there was the dreaded Netflix tax. Now, a new beast is on the horizon and it's hungry for our (digital) wallets.

After successfully implementing the Netflix tax last year, the Government has been debating how to best tax all those parcels we've been purchasing through online sites like eBay, Amazon, ASOS and Book Depository.

This is due to the fact that costs for security screening these parcels has sky-rocketed in the past few years and is costing the government a pretty penny.

According to a discussion paper obtained by Fairfax, 38.7 million parcels that were under the value of $1,000 were imported into Australia last financial year. The Department of Home Affairs, which handles the screening of these parcels, believes this number will grow 31 per cent over the next four years. That's means an incoming 50 million parcels. Yikes.

The government has already proposed the Online Goods tax, which is likely to go into effect on 1 July 2018. This tax is an extension of the GST, to include goods purchased online from overseas sellers. But there is another tax they are considering sneaking in as well on this date: the parcel tax. Gasp.

So, what is the parcel tax?

The parcel tax would apply to all parcels under the value of $1,000 imported from overseas. According to Sydney Morning Herald, these will incur a flat fee of $5 per parcel to cover the costs of screening them.

At the moment, parcels that have a value of more than $1,000 incur a $90 fee.

The discussion paper outlined that this will offset the growing cost of biosecurity.

"As the volume of imported low-value consignments continues to grow, so too do the costs of biosecurity, cargo and trade border activities for those consignments," the paper read.

"Existing cost recovery arrangements are no longer sustainable and will not support Australia’s future trading environment."

When is this going to be put in law?

While this policy has not yet been formally announced, it's likely it will be revealed in the 2018 – 9 budget on 8 May.

Of course, it would still need to be passed in the Senate before it is passed into law. The earliest this could be done is 1 July.

Still, there is a solid chance that this could just be our life from now on.

Photo: iStock.com/simonkr