Liberals tussle over GST for imports

The Liberal Party has had a bunfight over moves to apply the GST to imported goods under $1000 at a meeting of its federal council.

The party narrowly passed a motion in Melbourne on Saturday urging the Abbott government to refrain from introducing the tax on all overseas online shopping purchases.

It was the most controversial of the 17 motions debated during the two day conference.

Victorian Young Liberal President Simon Breheny argued kneejerk scepticism should be the default position on tax increases.

"This is the lowest of the low hanging fruit," he said.

The nation's treasurers have been trying to thrash out an agreement to lower the $1000 threshold for several years with NSW spearheading the push to plug the leak in potential GST revenue.

Former NSW MP Michael Photios said there was majority support from state governments to make the change.

"Why should we discriminate against Australian goods in favour of overseas (goods)?" Mr Phototios said.

Local retailers want to see a more level playing field but consumer advocates fear the economy will suffer from the "internet tax".