The Australian Government is to review current and future administrative arrangements for tourist shopping in Australia.
The main purpose of the review is to identify and analyse options for improving the delivery and administration of the tourist refund function and inwards and outwards duty-free shops (including sealed bag arrangements).
'Tourist shopping contributes significantly to the Australian economy and we believe in making the tourist refund system simpler for tourists and the Australian tourism industry. The Government remains committed to promoting Australia as the number one 'must see' destination and delivering all tourists a quality holiday experience, in which shopping plays a large role. I fully support initiatives that promote yield and dispersal across Australia within the tourism industry,' Minister for Small Business and Tourism, Fran Bailey said today.
'The review will seek to make the current arrangements more transparent, reduce unnecessary complexities and compliance costs for industry and administering authorities' Minister for Revenue and Assistant Treasurer, Mal Brough, said.
The Australian Government made a commitment in the Tourism White Paper to examine the potential outsourcing of the tourist refund function.
'The Government has decided it would be timely to conduct a broad review of the entire administrative arrangements for tourist shopping,' Ms Bailey said.
The review will be undertaken by an Interdepartmental Committee (IDC) that will report back to the Government by early 2006. The IDC has identified stakeholders with an interest in the review and has commenced a process of industry consultation.
As the Government has recently changed the level of passenger duty-free concessions, the review will not revisit these changes. The terms of reference for the review are attached.
Interested parties are invited to make written submissions by close of business on 23rd September 2005. Submissions may be emailed to drichardson@treasury.gov.au or sent to:
The Review of the Tourist Shopping Arrangements
Indirect Tax Division
The Treasury, Langton Crescent
PARKES ACT 2600
All submissions will be treated as "in-confidence" and will not be made publicly available.
Terms of Reference
Review of the Administrative Arrangements for Tourist Shopping in Australia
The review of tourist shopping arrangements will examine the current and future administrative arrangements for the Tourist Refund Scheme (TRS) and inwards and outwards duty free shops.
The TRS was introduced by the Australian Government as part of A New Tax System to enable overseas tourists and Australians travelling abroad to claim refunds of goods and services tax (GST) and wine equalisation tax (WET) paid on goods that they purchase in Australia and take with them.
In addition, 'inwards' duty-free shops are licensed to sell a limited range and quantity of goods duty free to travellers arriving in Australia on international flights. 'Outwards' duty-free shops can sell goods duty and tax-free to travellers leaving Australia.
Specifically, the review will identify and analyse options for improving the delivery and administration of the TRS and inwards and outwards duty free shops. The broad objective is to improve the well-being of Australian people through encouraging increased economic activity and reducing unnecessary complexity.
The review will consider, but not be limited to, the following:
- the economic benefits of tourist shopping and its relationship to Australia's attractiveness as a tourist destination;
- administrative effectiveness, efficiency and simplicity;
- utilisation of tourist shopping arrangements;
- transparency of arrangements;
- an examination of the threshold for eligibility for refunds under the TRS and potential for outsourcing;
- the scope of merchandise eligible for sale in inwards and outwards duty-free shops;
- potential impacts on Australian industry, including small to medium business;
- revenue effects; and
- international developments.
Consideration will also be given to any other matters related to tourist shopping that may arise during the review, including transitional issues that may emerge from a change from the present to any arrangements that are recommended.
Customs duty drawback arrangements and the Government's changes to the level of duty free concessions (announced on 18 September 2003) are excluded from the scope of the review.
The review will report back to the Government by early 2006 with an assessment of the options examined.