ChatterBox
On the way to work this morning, heard this on the radio. Might be time to stock up on those English imports before they reduce the $1000 tax free threshold.
From Online shoppers could be hit with GST on imported goods | News.com.au
ONLINE shopping could be set to get more expensive after a review recommended new tax levels for cheap imported parcels.
Under current mail arrangements, GST is generally only charged for overseas packages worth $1000 or more, because the amount of money spent recovering tax on cheaper goods was thought to outweigh revenue collected.
But a government taskforce recommended the threshold be lowered, after finding that this could be a cost-effective way to raise money and even the field for domestic retailers.
The government has received the report and will now talk to the retail industry before outlining a response.
Shop owners have applauded the findings, after arguing that customers were flocking to the internet for cheaper prices that weren't taxed in the way domestic goods are.
The report by the low value parcel processing taskforce found that the number of parcels coming into Australia was "growing rapidly''.
"The number of parcels in international mail has more than doubled between 2006-07 and 2010-11 to more than 48 million,'' it says.
"Similarly the number of low value goods arriving as cargo was around 10.6 million in 2010-11, an increase of more than 58 per cent since 2008-09.''
The group's modelling found that charging tax on parcels under $100 was not cost effective, but it could be worth putting GST on higher value goods.
It recommended "the application of simplified GST assessment arrangements for low value imported goods between a separate low value GST threshold set above $0 and below $1,000''.
To do this, Australia Post and other mail handlers would have to be in charge of collecting money.
Assistant Treasurer David Bradbury said the government would discuss the findings with business groups before making a formal response.
"The Gillard Government is committed to working together with the sector to ensure a strong and prosperous future for retail in Australia,'' he said.
Master
Still will not affect people buying abroad when it's so much cheaper. As an example I needed a new Air compressor for my D3. Purchased a brand new genuine LR one from Paddocks in the UK. Cost was $500 delivered add on 10% GST and it's $550. But to buy one over here was over $950 and that did not include delivery!!! So even with the GST I still saved over $400.
Ivan
Wizard
Watch for the charges added on top to collect the tax.
Have had a number of parcels arrive here in the UK with VAT of a few pence due. Post Office has a handling fee of £8 to process the collecting of the tax.
I thought I had read recently that this was not going to happen due to the cost of collecting the extra tax outweighing the expected income?
[EDIT] I did. Treasury says "No"
ForumSage
IMHO, it would be a better idea to raise postage charges. That way, the money goes directly to Government coffers.. without the idiocy of being collected by one branch, then handled by others, before ending up in another gov't account. - with extra people employed doing nothing except sending many, many small amounts of money on round-robins.
Sounds more like 'appeasement'... better to reduce the government fingers in retailer's pies than mythical levelling of playing - fields.
Oh hang on! - Forgot about Australia Post being sold off eventually. - Of course it will be! - Aunty Julia will be running short of cash... again.
ChatterBox
Wow, so if Aussie post can charge a fee, I reckon I can. I collect GST and PAYG all the time for the ATO. I think my fee will be 10% just to keep it simple. Bit over paying an accountant to do the governments paper work for them.Originally Posted by 3toes
Jason
2010 130 TDCi
Super Moderator
The real issue now is that the State Governments are now jumping on the idea to increase state revenue (after all GST is a state tax collected by the Commonwealth). The problem will come about then there is differential taxation, e.g. we have a Free Trade Agreement with the US and Australia is not permitted to add a tax or tarff on US made goods more than any tax or tariff charged on the same goods in the US.
This is where the issues of assessment costs exceeding the revenue raised, calculating any duties, insurance costs, shipping knowing when to apply the GST to the VoTI and when it doesn't apply, particularly when items come on courier aircraft from multiple source countries at the same time.
You won't find me on: faceplant; Scipe; Infragam; LumpedIn; ShapCnat or Twitting. I'm just not that interesting.
ChatterBox
SubscriberMy question is from a different angle. Do the job gains in retail balance out against the job loses in couriers and handling staff? If you go from the current situation of thousand individuals importing parcels that need to be sorted and delivered nationwide(one link said 48million) to a major retailer importing containers to their stores what do all the small to mid size delivery people do?
Master
Did you check the date of the news story?
- Matt Johnston
- News Limited Network
- September 07, 2012 9:48AM
We in this country have been unaware for a long time as to what people around the world normally pay for stuff. Once Australians became aware via the internet, the wheel turned, so add a 10% GST and you will still save a heap.
A lot of Australian businesses have had a price picnic for a long time without consideration to their customers.
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