Retailers Launch GST on Imports Campaign

stanas on 04/01/2011 - 07:58
Last edited 04/01/2011 - 08:00

Saw this and Gerry and co are putting in print advertising to try and get GST on all goods imported (at the moment if it is under $1000 no GST) - also considering television advertising.

http://money.ninemsn.com.au/article.aspx?id=8191403

"Australian retailers will launch an advertising campaign urging the government to impose GST on all goods bought over the internet.

From Tuesday, major retailers including Myer, David Jones, Harvey Norman and Target will take out the print advertisements, The Australian reports."

Went looking and found something a few months earlier by Choice, particularly the logistics of introducing the tax. I would imagine the postage time would balloon massively if it was introduced, processing every single item to then put the GST on would be a nightmare.

http://news.ninemsn.com.au/article.aspx?id=8169144

General Discussion

Comments

  • Trance N Dance on 04/01/2011 - 08:46
    +13

    "If the government does not want to impose GST on internet purchases, which are free of GST and import duty if valued at less than $1000, it should not impose it on domestic purchases, the ads also claim."

    What a load of rubbish.
    Also agreed on processing every little item that comes through the mail is massive FAIL!

    And goddamn these companies are chucking a hissy fit. Like come on there's proof that you guys are just ripping us off and protecting your bottom pocket. Walk into any Harvey Norman store when there's a sale and it will be full of potential customers. You just need to get the damn price right not blame it on GST.
    Even if a GST was slapped onto some products it would still be miles cheaper than buying it locally. For example the Sony Dualshock3 Controller, can be had for roughly AUD$32 imported. Whack GST on that and it's $35 cheapest I've seen in Australia is $47. That's a $12 or a massive 25.5% savings even after GST is applied.
    Another example my earphones cost AUD$400 from USA, with GST that makes $440, quoted Australian price $550. A whooping $110 or 20% difference.

    It's time to take your damn heads out of your arse and look at the way you opperate. You no longer can afford those 100% profit margins anymore. Lower your price or suffer, regardless of GST or not. Cause if it ain't cheap or at a reasonable price we won't buy it anyway.

    • cwongtech on 04/01/2011 - 20:03

      I know right?
      Think Global not Local.

    • EnALup on 11/01/2011 - 02:59

      I think, you need to post it to today tonight or garrys facebook page to let them know, why customers are not happy.
      Gerry was like surprised to know, why people are unhappy :)
      he said , he is doing the right thing.

      • Trance N Dance on 11/01/2011 - 08:27
        +1

        If this keeps going, I'm sure one of us here on OB is going to be quoted sooner or later lol.
        Besides I feel like if I post it onto a hate page I'd be attacking him instead of just discussing how he's just ripping us off.

        • EnALup on 13/01/2011 - 05:28

          true :)

  • simonk83 on 04/01/2011 - 09:58
    +6

    Here's a crazy notion to fix all this. How about the Aussie retailers attempt to be competitive! Then perhaps we all wouldn't see the need to go overseas to get our stuff at a third of the price.

    Good luck Gerry, you'll need it.

  • blackwalnut on 04/01/2011 - 11:18
    +1

    good luck getting anything imported quickly should they change the rules. I agree, if the Harvey and the gang were actually competitive we wouldn't bother importing the stuff. But why pay double? Particularly when you look at PS3 and Xbox games. All half price overseas, even when you count the shipping !!

    • Trance N Dance on 04/01/2011 - 11:20

      Even if they introduce it, they won't do so until 1 July at the earliest, but if they do decide to do so looking more likely to be 1 January 2012 posibly 1 July 2012 you know how long governments drag their feet at changing policies.

      • EnALup on 13/01/2011 - 05:31

        I dont think, Govt will change the rule. I saw in news fews days back from a govt. rep, that collecting the tax from online sales is much very very difficult and govt has to spend more and get less.
        Govt. does not see the whats right or wrong, they see, where they can make profits. like the traffic cameras.

  • rack on 04/01/2011 - 12:52

    I think to counteract their move we buyers should suggest government impose some sort of maximum genuine RRP on products rather then over inflating them and then offering discounts on them. These companies sell stuff at really high prices compared to overseas suppliers and now they have a problem with us buying them overseas. Is 10% really going to make a difference.

  • retiredfeline on 04/01/2011 - 14:05
    +1

    Imposing a GST on imports < $1000 won't save them. When I was looking for a particular whitegood, I only had to do a web search and I right away found an Internet retailer in Australia that beat HN and BL prices.

    It's the last gasp of clunky retail dinosaurs. Hey Gerry, how about getting up to date with e-commerce?

  • Trance N Dance on 04/01/2011 - 18:05
    +6

    Mmmm just a thought, it's a multimillion dollar campaign (according to nine news). Did any of those stores think of saving those multimillions of dollars and giving us a price cut with it?

  • scotty on 04/01/2011 - 22:42
    +4

    SMH: Online tax push faces backlash — interesting read. And Xenophon's comment on them being "Goliath pretend he's David". Like what Trance N Dance has said — multimillion dollar campaign from all the rich mega-retailers to pretend victimised and cry poor?!

    Interestingly that SMH's article received 800+ comments and they already have to close commenting on that page a few hours after the article was published. Most comments (if not all) are one-sided, and it's not on Gerry's side.

  • Davo1111 on 04/01/2011 - 22:53
    +2

    +1 to what everyone above has said.

    Gerry Harvey is an idiot, first he complains that hes losing business to Kogan and now hes complaining about this import GST situation. He really needs to grow up, adjust his business plan, and realise that nobody needs to go and see a "sales assistant" to buy a $30 router… or a mouse. If borders have smartened up (DVDs are now online only), then why cant he? He's been digging his companies hole for a while. He should either change business plans, or just get out of the industry, because he obviously cant handle it.

    • scotty on 04/01/2011 - 23:17
      +1

      Haha. I won't call him an idiot. I think he just believe "any publicity is good publicity" and then try to make the most out of it. Like someone would say about, hmm, Paris Hilton?

      Just a conspiracy — maybe he actually teamed up with Ruslan Kogan with all these publicity stunt.

  • pauly on 05/01/2011 - 03:28
    +3

    Gerry Harvey is an idiot,

    LOL. If he is, he's a rich one. :)

    adjust his business plan

    Couldn't agree more. IMHO, this is the main problem for Gerry et. al. Their business models may be brilliant one or two decades ago when most consumers were demographically limited to the purchasing range/price of goods and finding a benchmark to compare prices was not easy.

    Given that ~80% of the AU population now have access to the Internet, our modern day consumers have the tools (and OzBargain!) to make better purchase decisions on brand/quality/price of goods. These old-school retailers need to adjust with times if they want to be in the game for the long term. A good starting point would be pricing. :)

    Even if a GST was slapped onto some products it would still be miles cheaper than buying it locally … That’s a $12 or a massive 25.5% savings even after GST is applied.

    While the savings factor is definitely what I and many other consumers prioritise, I suspect there are additional motives behind their push for the government to impose GST on overseas purchases. For example if the government implements this, then there would probably be increased wait times + hassle of GST clearance before an item reaches you. The inconvenience factor is probably what the bigger retailers are hoping for as a deterrent for people to be buying from overseas.

    it’s a multimillion dollar campaign (according to nine news). Did any of those stores think of saving those multimillions of dollars and giving us a price cut with it?

    From a business perspective, I can see the reasoning behind their multimillion dollar campaign for long term benefits. But whether this would have a positive outcome for them, we shall see. Personally, I don't think the bigger retailers would make any difference to their sales figures if they don't adjust their pricing models to compete with other retailers, in Australia or abroad.

    I think he just believe “any publicity is good publicity” and then try to make the most out of it.

    +1. Let's hope this backfires and end up in a vodafail.com type publicity. Actually someone should start a similar website specifically to target retailers that claim 'lowest price guaranteed', but then refuse to honour price matching. If it gets any media attention, then it would probably pressure the ACCC to take interest. :)

  • retiredfeline on 06/01/2011 - 09:15

    Hahaha, I am enjoying watching those morons getting lambasted in the press and popular opinion at the moment. And they have the cheek to tell us we don't get it. Epic fail, morons.

  • inherentchoice on 06/01/2011 - 09:41

    These monopolising retailers are merely looking out for their bottom line.

    As I said in the other thread, plenty of online sales are actually from Australian websites who do include GST in the price! The propaganda they're spreading about the effects on the economy is a lame excuse that doesn't amount to much more than rhetoric.

    Seriously, even if there was GST on the cheaper goods that are posted from Hong Kong and China, Gerry Harvey's chain still wouldn't be competing with those kind of prices, so the argument is moot anyway. To regulate this kind of thing is way over the top. Keep the threshold at $1000 please.

    The world is getting smaller and the internet is presenting new opportunities. Big deal. The traditional retail chains who whinge about it should get with the times.

    GST is hardly an issue here, and we shouldn’t be trying to protect Myer’s extortionate mark-ups, nor these big companies share prices.

    Let's hope that common-sense will prevail here and these inefficient profiteers don't get their way.

    http://www.ozbargain.com.au/node/36488#comment-340301

  • padfoot07 on 06/01/2011 - 21:41

    Most people buy online because it is cheaper, so instead of complaining, Gerry Harvey, lower your prices or shut up! Smaller, local stores have always had it bad when trying to compete with the giants such as Harvey Norman, but no one ever gave a crap about them, and now that a similar thing is happening, the giants are complaining. Get over it!

    • pauly on 06/01/2011 - 22:31
      +1

      According to Gerry, you're also unAustralian if you buy goods overseas. I guess that makes most of us on OzBargain unAustralian in one way or another. LOL

      So pretty much he wants us to sacrifice financially and pay more to buy Australian goods (which are mostly imported) at knowingly much higher prices. Who does he think we are, charity? Quite contradicting really, considering he is oppose to the idea of charity himself.

      If he really wants to be a true Australian, he is more than welcome to minimize his profit margins to help Australians especially at times when most people are tightening their belts. From reading public views from various forum posts, I think most people are not expecting him to give money away, but merely asking that big retailers like him to lower their prices and remain competitive with the global and local market. HN did after all reported a $231.41 million net profit this financial year, so IMHO that makes him to be in a better position to make some financial sacrifices instead of putting that expectation on the Australian public.

      He's expecting us to do something for Australians, but the way I see it, the question should be what Gerry can do for Australians. Afterall, he's the one with the billion$, not us.

      • scotty on 07/01/2011 - 07:32
        +5

        Buying Australian?

        First of all, most electronic goods sold in Harvey Norman are produced… overseas! It is either consumers import them ourselves, or we pay a huge margin for our "Australian" retailers to import them for us.

        And then in this interview with ABC the other day (you gotta listen to the MP3 file), Gerry's wife was shopping… in New York! That's not very Australia is it, according to Gerry's standard.

        • padfoot07 on 07/01/2011 - 09:55

          That guy needs to shut his mouth. In the paper today it said something about him backing down because of new groups on facebook that plan to boycott Harvey Norman.

          At the end of the day, my money will be going to the place where i find the product i want, at the price i want, because it is my money, so i'll do what i want with it.

        • [Deactivated] on 07/01/2011 - 11:41

          Scotty - Probably the best report I have seen on this yet. But in fairness Gerry was the one who said it, and didn't say that his wife did buy anything, it was just a discussion a with the store owner/manager about Aussies buying.

          That said Gerry is getting rattled, to even mention it was foolish. This group he is with is using a PR agency to get its message across, with his mates Singleton and his political connections the groups PR agency has probably used the same focus groups as the ALP did in the last campaign, and we know how effective those groups were in judging Australians sentiments

  • [Deactivated] on 07/01/2011 - 07:08

    As seen on whirlpool this makes a lot more sense

    "Well Gerry has now admitted that he maybe got it wrong, he is eating humble pie. What an idiot, he’s been out of touch for ages and this just proves it.

    He spends millions on promoting buy now pay in 300,350, 400 days. How often do we see the same dressed up campaigns ad nausem for HN Domayne JM telling us to buy now and never a price in any of them,

    That’s been his market for ages, his customers have no idea of value, they will pay any price to get it now, so the 10% GST and weeks wait for an OS purchase, they they have to pay for NOW, doesn’t appeal to them, so where’s his loss??"

    http://www.theage.com.au/business/gerry-harvey-beats-a-retre…

  • Davo1111 on 07/01/2011 - 11:30
    +1

    oh wow

    GERRY Harvey has declared he will step back from the big retailers' campaign to have the GST imposed on overseas online purchases, **saying he is hurt by an avalanche of criticism **directed at him and feels that getting involved was ''suicidal''.

    http://www.theage.com.au/business/gerry-harvey-beats-a-retre…

    hmmm so i wont need to send my letter (attached with a fast food application) afterall.

  • Davo1111 on 07/01/2011 - 11:32
    +2

    Oh wow, interesting poll there.

    Poll: Will the raging debate about taxes on purchases from overseas websites and the comments of some of the nation's biggest retail figures
    1) Make you more inclined to shop at a bricks-and-mortar store (1%)
    2) Make you more inclined to buy online (49)
    3) Make little difference. I've always sought the best deal anyway (50%)

    18613 votes so far

  • Trance N Dance on 07/01/2011 - 21:02

    The nerve on Gerry….
    He has the bloody nerve to go on national television (is today tonight national?) and insult his potential customers. No wonder there's a MASSIVE hate storm against him.

    Quote from Today Tonight aired on 7/01/2011
    "a pack of filthy filthy dogs"

    • Davo1111 on 07/01/2011 - 21:50

      i think a comment on this hitler parody of gerry harvey summed it up well

      @2:08

      "he has been a media tart for many years"

      • padfoot07 on 08/01/2011 - 11:00

        The video has gone :(
        Is there another link?

        • Davo1111 on 08/01/2011 - 11:40

          mmmm sorry there doesnt seem to be another one. It was a good hitler parody too :(

        • retiredfeline on 08/01/2011 - 11:44

          Was that the segment from Downfall mashed up with new subtitles? In that case we just need a post of the subtitles. :) Pity that isn't online anymore.

        • Davo1111 on 08/01/2011 - 11:58

          mmm yes, downfall. Just watched the original last week for the first time :)

        • andy19363 on 08/01/2011 - 12:55

          excellent movie…

    • stanas on 07/01/2011 - 21:59

      He appeared on ACA as well. Don't remember much expect that he was right but did no convey the message well. He did not say he was giving up the fight, but would stay in the background now to support the "small" retailers. Maybe small like Myer and DJs.

      • Trance N Dance on 07/01/2011 - 23:12

        Also he goes
        "I'm right" and then something along the lines of, just because your right it doesn't mean it's "right" to everyone else or somthing.
        So he admits defeat but doesn't….

  • gstfree on 11/01/2011 - 09:51

    It's not possible to impose GST on imported goods for value less than $1000
    Simply because if GST is levied on imported goods, that means

    • gifts from overseass is subject to GST
    • business samples is subject to GST
    • Any imported small boxes will be screened any checked for its value
    • Disputes will be dreamatically increase
    • Not value added for our economy, society
    • Government will increase un-necessarily enforcing costs, residents will increase un-uncessarily complying costs

    Gov won't change GST bill.

  • jakkas7 on 11/01/2011 - 13:09

    OFFICIAL BOYCOTT HARVEY NORMAN T SHIRT ;)

    http://cgi.ebay.com.au/ws/eBayISAPI.dll?ViewItem&Item=260718…

    • Trance N Dance on 11/01/2011 - 13:58

      too bad it's a one off

    • scotty on 11/01/2011 - 23:51
      +1

      $21.50 + $10 postage for an ugly T-shirt? Not a bargain! :) Could have got one from Threadless!

      • andy19363 on 12/01/2011 - 00:26

        all proceeds going to the Queensland Flood Relief Appeal.

        apparently….

      • Davo1111 on 12/01/2011 - 11:41

        scotty - i see what you did there :P

  • infernal_max on 12/01/2011 - 00:03

    Wonder if hn Qv will mind if I stand outside the store and greet customers lol

    • marcusv on 13/01/2011 - 09:01

      I noticed the other day that HN QV had a security guard standing out the front. Do they usually have one, or is it just since Gerry's recent kerfuffle?

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