News.org.au – You can buy and resell medical supplies and equipment online, but there are limits.
The Australian Competition and Consumer Commission (ACCC) has warned the new Goods and Services Tax (GST) will make it harder for companies to get access to the world’s most popular medical goods.
The ACCC has said online transactions of medical products will be restricted under the GST regime.
Key points: The GST is expected to force online sales of medical goods and services online The ACCc has warned that the new regime will make the market for medical supplies more difficult, with online purchases becoming harder The ACCc said online purchases of medical supplies are not covered by the GST, but that medical equipment and equipment sold on the Internet is taxable.
The ACTs Health Minister Dr John Rau said the new rules would be a “major challenge” for Australian businesses.
“I think this is going to put a significant barrier to entry,” he said.
“If you’re going to be a large, large supplier of healthcare goods, then you need to make sure that the people who are buying that medical goods, you know, they’re not using it to buy other products, so you know they’re paying you for it.”
Health Minister Dr Rau has said the ACT is prepared to work with the Commonwealth and industry to make the GST system simpler for Australians.
Under the new system, the Australian Competition & Consumer Commission is to develop new regulations to allow companies to access the GST on online medical sales.
“The Australian Competition Commission will be able to develop rules for online transactions so that these transactions are covered by this new tax regime,” Mr Rau told ABC Radio.
“And I think we’re going, from a business perspective, to have to have a better understanding of the rules around that and we’re working with the ACCc and others to make those rules simpler for our businesses.”
The Commonwealth Government has confirmed the ACT will take over the role of acting ACCc.
However, it’s unclear when that will happen, and whether the ACT would be able or willing to implement GST rules on the new internet marketplace.
The ACCC will also be working with industry on how to deal with the impact of the GST.
ACCC chief executive commissioner Rod Sims said it was a significant challenge for Australian consumers.
“The current GST regime is designed to allow consumers to buy, sell and transfer goods and have those goods taxed at the same rate as other goods and they have done that for decades, and it’s time to change that,” he told Radio National.”GST will require changes in how businesses and individuals operate and they are working hard to understand what they will be required to do in the new environment.”
But it’s not clear whether the new GST regime will include any additional incentives to encourage online medical purchases, such as rebates or a discount.
