ARA Executive director Russell Zimmerman said the move was necessary and overdue.
It was welcomed by traders in Midland and Morley.
Treasurer Joe Hockey announced the $1000 threshold would be dropped from July 1, 2017 in favour of a 10 per cent GST on all overseas purchases.
Long time campaigner for an equal playing field RC Models owner Brian Simpson said loopholes currently being exploited in products coming into Australia would be closed.
�Many international retailers get their products into Australia and escape paying fees.�
Mr Zimmerman said the new measures would not stop
�We are only trying to make it more competitive for Australian businesses as they can�t compete with overseas retailers without a GST on imported goods,� he said.
For Mr Simpson though the changes have come too late.
�I can�t survive another year like this,� he said.
Mr Zimmerman said the ARA would have liked the government to introduce the changes sooner.
However, he said �we look forward to working with the Government on its implementation over the coming years�.
Midland retailer Eddie Peters said that the Swan Chamber of Commerce had won the first stage of the GST threshold battle.
�This is very pleasing,� he said after working to get the Federal Government to listen to retailer concerns since 2010.
�Stage two is to help the Government work out how to collect it so we can get it happening sooner than July 1st 2017,� Mr Peters said.
The Honda dealer from Morrison Road said all local retailers and members of the chamber had contributed to getting stage one sorted and agreed upon.
Mr Peters said stage two of the campaign was to help advise the government on how the collection on overseas purchases could work.
�I am sure we can get them to start it on the July 1, 2016, a year earlier so we need to work out the model to collect it.�