It might be a world market place but the tax man is trying to level the playing field :Thump:
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Example of Oz trader greed. As many of you know I used to import and resell machine shop supplies, engineer's cutting tools, etc. I was getting a lot of enquiry from restorers for a particular series of obsolete taps and dies. I decided there was sufficient demand to find some. I had to get them made in the USA. Machine shop quality in high speed steel. My principal competitor sold them and their prices were eye-watering. I thought "Well, I have always been able to beat their prices but never had to sell custom build stuff against them before". I had to order a minimum of 40 pieces each. Turned out I could sell handsomely at half their price. A nice little earner at half price too.
I read somewhere quite a long time ago that British Post was to collect the GST on behalf of Auatralia and were going to Charge a GBP20 surcharge as well as the GST.
This would make it uneconomical for small low value items that were posted from UK.
Regar s Philip A
Yep, Many Australian prices are so wildly over inflated and this push has been to make people pay the Australian prices and for some Australian retailers be relevant when they're forcing the community to not need them. It'll be interesting to see if the Australian prices for products which are typically imported go up by 10%. When you hear business owners say that they run as lean as they can, and then also say to charge whatever they can get for it, this is all really about getting people to buy products with the Australia tax on it. I think when I bought my HD axles/CVs they were $1150 imported and individually sent as opposed to $1900 locally (Australia) plus postage - shop local they cry as they price themselves into irrelevance. Yes we need Australian business, services notably, but we don't need to pay like fools.
This might be all well and good. Its simply laughable ...
Just like this badge:
https://www.aulro.com/afvb/images/im...018/06/188.jpg
Yeah sure ... I'll ring tomorrow and order a bonnet prop and see how i go ...
Here right now I have
A Rangie classic or two .... Actually parts for them are available from great vendors in Australia
1 x 1952 Traction Avant ................ Local suppliers .... er, ZERO.
1 x Citroen CX2500 GTi Turbo. Local suppliers .... er, ZERO
2 x '63 ID19s ... built in Australia. Local suppliers ......................... ZERO
My father has a Citroen 2cv .......... Local suppliers ............ ZERO.
My wifes poogoe 407. I can order anythign for it at the local dealer.... And wait many weeks for it to get here ( there is no stock in australia). The price is absolutely eye watering..................... Or I can jump on ebay.co.uk .... By the parts at litterally 10% of the asking price ... and its here in usually about 5days.
If this crap gets implemented. The overseas sellers will just tell me "we don't sell to australia". Which means all of my cars are now worthless crap I can't get a part for. Great right ?
Thanks for the reminder. I'm going to order in the Traction gearbox parts I need right now .... so they get here before July 1st. Or I may find I can't buy them :soapbox:
I have emailed LR direct to ask how they will handle it.
If and when I get a reply I will post it.
Regards Philip A
As I understand it the overseas suppliers were asked to collect GST on behalf of the ATO, this didn't work out hence there has been a 1 year delay until they implement GST on purchases under $1,000 (was planned for 2017).
A colleague received a letter from customs stating it will be charged in Australia. So whether Customs will get the declared value from the package and then send you an invoice or whether you're dobbed in to the ATO I'm not sure......
As to the Land Rover parts issue....with 'Series' parts you can buy locally in a blue box/bag or buy from overseas and get the same parts in the same blue box/bag. Typically I end up paying 30% more locally than buying & freighting from the UK. Yes there is the 'warranty issue' but so far I've had maybe 3 items that weren't faulty but were 'not suitable for use' in 3 or 4 consignments of just under $1000
Buying quality Series parts locally ? NOS maybe...... but otherwise they all source from the same couple of suppliers in the UK who get the parts made in India/China etc.
The blue box/bag company sources from India/China/UK etc. They supply to the blue box/bag importer in Australia. The Australian blue box/bag importer supplies to the local Land Rover shop. No wonder it starts to get expensive!
It's interesting that some of the LR specialists are importing direct from India to cut out numerous 'handling charges' (from a conversation with a supplier at Cooma).
Why is the tax being implemented ? I would guess due mainly from complaints from the retail sector where people buy clothes etc. online from overseas. Also it was always a loophole but now it's being closed.
If the local suppliers keep their prices constant then the gap has narrowed. The 'drop shippers' will have to either increase their prices or lose 10%.......
Additional:
A quick look at the ATO paperwork and it seems that if your consignment is over $1000 (excluding freight) the supplier doesn't have to charge GST, it's charged at the border. So maybe we now have to consolidate orders to make sure it's over $1000 (excluding freight) if the UK supplier isn't registered for GST ?
Clear as mud.......
Just got a reply from Paddocks. They are aware of the changes & currently processing all of the information.
Colin