Government Moving to Remove (or substantially lower) GST-Free Threshold

Looks like the days of Australians getting something close to a decent deal on goods are coming to an end. The government has just announced today (on Boxing Day, naturally) that they're going to look at removing the $1000 GST-free "loophole" to "help" local retailers to "compete" with online sales:

http://www.dailymail.co.uk/news/article-2887248/Government-r…

Basically it means we the consumers get screwed over (yet again) simply because retailers are unwilling to be competitive and stop gouging us upwards of 50% more than our foreign cousins in the US and UK.

The sticking point is that they don't yet have a way of collecting the GST without it costing more to collect than the revenue it would generate in the first place. So guess what. My bet is that it'll be US who have to pay for collecting it. In other words a $20 USD DVD would cost roughly $25 AUD at the current exchange rate + the cost of shipping + 10% on the total + the cost of collecting the GST (which could be anywhere from $5-30 or more). So suddenly that $20USD DVD ends up costing something like $40-50 AUD.

Comments

  • This is how you teach Canberra a lesson in not listening to the majority.

    "PRIME Minister Tony Abbott would lead the Liberal Party to a historic defeat that would deliver a primary vote of just 36 per cent and terminate the careers of more than 40 Coalition MPs if an election was held today.

    In a poll that will send shock waves through the Coalition party room, support for the Abbott government has plunged to 57-43 on a two party preferred basis, according to a new Galaxy poll."

    The worst first term prime minister far worse than Rudd even Gillard did better as a first term prime minister.

    Queensland state election have shown if you don't listen to the majority, you will be punished. A premier that lost his own seat and an opposition with only 9 seats regained over 30 seats back.

    Let that be a warning.

  • well it looks like once again this is being deferred … too hard basket maybe?

  • +1

    Too hard basket is wishful thinking. Deferred only means til after the 2016 election. They expect to be re-elected.

  • See:
    State treasurers will be asked to subject almost all imported parcels to goods and services tax under a dramatic proposal that would cut the GST-free threshold from $1000 to just $20.
    Read more: http://www.smh.com.au/federal-politics/political-news/gst-on…

    • There goes the Cree torches!!!

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