Online shopping + Overseas = GST now

Well the Review has finally been completed and the government is looking for ways to charge GST on all online shopping from overseas. The federal Government has set up a task force to examine lowering the threshold for GST on online purchases from overseas.

All this is inspite of the Productivity Commission issuing its report on Australia’s retail industry, which said the lack of GST on foreign-purchased goods was “a minor part of the competitive disadvantage faced by retailers”.

7 news has also reported that the task force will look for ways to charge GST on all online purchases.
Time to get rid of this useless government? Dont they know we will continue to shop online n overseas

More info here

http://www.abc.net.au/news/2011-12-09/commission-want-change…

http://www.canberratimes.com.au/news/national/national/gener…

Comments

  • That’s because it has nothing to do with the “competitive disadvantage faced by retailers”. It’s purely and simply a way of getting more tax. The only way they can catch it is to drop the current $1000 threshold on goods going through customs. That’s going to mean that we not only get stuck with and extra 10% but the customs fees as well. The last time I got a $1500 package form OS it cost me $150 in GST, $50 in customs fees and $200 in fees from a customs broker because I didn’t want to wait the 6 weeks customs said it would take for them to look at if I went direct.

    • It has EVERYTHING to do with the retailers. The government will only lose money through the overheads and they know this. The retailers want to make online shopping to hard so they can go back to not having to compete internationally. They make lots of money, so they have LOTS of sway with the government.

  • some1 please tell me what has this governmnet done other than introduce tax after tax?

    Carbon tax
    Mining tax
    Now GST threshold

    We must remember that GST in actual fact is double taxation. First u pay incom tax. then u pay from ur post tax $ you pay GST.

    • This post is so poorly informed I don't even know where to start. Probably mostly, we have always had a dual taxation system, one for income one for sales, GST merely unified and simplified a series of other taxes/tariffs.

      http://en.wikipedia.org/wiki/Goods_and_Services_Tax_(Australia)

      • whats poorly informed? that GST is double taxation? the fact that its been around for a while doesnt make it right. Whats misinformed is ur post. it hasnt been around always as you say. it was introduced in 2000 by the howard government. And if u like the GST so much, lets see how much u like it when close to 50% of ur income goes on taxes. Incom tax +carbon tax +flood levi+ medicare levi+GST +whichever other tax they introduce. And if things get worse like they did in europe expect the government to raise the GST from 10% to 20-25%. Thats exactly what happened in europe. VAT went from 10 to 20%/25%

      • Indeed Goods and Services Tax is just a form of consumption tax, which when introduced it was aimed to do away with other consumption tax (rather than income tax).

        It did well but not all that successful. Still, 10% is still better than VAT or MwSt in UK/EU countries though.

        • Yes Scotty. The problem is that with economic conditions worsening nothing stops them from increasing the GST from 10% to 25%. Just look at Greece and Portugal. And the government saying that they will not increase the GST has almost no value. Go back to Julia Gillard saying there will be no carbon tax.

          What i really am trying to say is that the Australian retailers have had a good time so far. With ripping us off. Mostly because they want to pay their CEO's so much. Now that we have found cheaper options overseas the government is looking to make that less favorable. I would have thought that when people are struggling so much the government would be happy they have found ways to reduce their cost of living. Instead they should be going after Australian retailers and management salaries.
          And im not even going to get started on how the government has promoted investing in housing and property that has forced up cost of living and rents for both residential and Commercial. Higher commercial rent +higher electricity+ carbon tax+petrol prices have forced cost to go up.

  • -1

    don't the government have better things to do, seriously ?

    like addressing our health infrastructure ?

    retailers obviously are hurting from online shopping but that's only cos they're not earning the 200% profit on items they used to ! suck it up.

    is there anything we can do to oppose this ?

    • counting down for the current governemnt

    • Yes, write letters. Seriously. The government does not want to do this and they know it is unpopular. They may have to concede to the powerful retail players, but the more clear opposition the easier it will be for them to stop it.

      If you write to a minister you almost always get a response, and often not just a form letter, try it out.

      • Bruce,
        You must be joking with this Labor government.
        You can write, you can protect, and even get a "response", but nothing will change!!!

        It'd done"nothing", except spending and introducing taxes, and blame the opposition!
        Can't agree more with JoannaTan: counting down for the current governemnt

  • don't vote Labor, Greens & Independents at the next election

    • +2

      What's the alternative? Don't get me wrong; I have nothing against voting for the Libs, but I can't imagine a Liberal govt being any better for the country.

  • I've got an idea. Want a level playing field for Australian retailers? Get rid of the GST.

    • +1

      i agree whith that, however the goovernment wont get rid of its cash cow.

  • +1

    They are Not addressing the problem. The problem is the wholesale price are more expensive in Austaralia, than US, UK and Hong Kong. Even Australia is a small market, the trade barriers that push up the price are enormous!

    And the postage are more expensive here! It is cheaper to post the same thing via airmail via HK or Singapore, than post it thru Austalian post to Australia!

    • as you may be aware that australian labor is not efficient. thats why attract higher cost + the union that got mindset in 1800's, they want the good of oldies and doesn't want to accept that the world has changing a lot in the last 200 years.

      • +1

        our australian unions have ensured that we have rights then ensure we stay quiet inefficient by doing very little and still get paid a lot. retail pays $8/hr in the US. In australia its more like $17/hr.
        We really need to increase productivity in this country to decrease labour cost.

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