topic Re: Is it a loophole? in Community Spirit

Is it a loophole?

donnashuggy — Wed, 27 Nov 2013 06:27:06 GMT

Good idea or not to lower the threshold??? Changes to the GST for online international purchases seems to be getting a push today in the media.

Re: Is it a loophole?

**meep** — Wed, 27 Nov 2013 06:33:37 GMT

I think it is a good idea....It should encourage Australian buyers to shop here rather than overseas. It won't be reviewed until March next year I think ??

Re: Is it a loophole?

donnashuggy — Wed, 27 Nov 2013 06:39:38 GMT

I am a bit green on the topic meep, I am not convinced that it will encourage people to shop here, you will still be able to shop in china for $1 with free postage. (just one example)

Re: Is it a loophole?

crosbystills — Wed, 27 Nov 2013 06:49:52 GMT

Terrible idea. It'll be a nightmare to administer, causing bottlenecks and delays to everyody's parcels.

It's unlikely to add only 10% to the cost of goods. A couple of years ago I imported a guitar that was just over the $1000 threshold and was charged an $89 quarantine fee and a $55 document handling fee (plus duty and GST). Imagine paying those kind of fees on everything you import.

For those who think the current threshold is high, consider that in 1985 it was $400. According to the Reserve Bank's inflation calculator, that's equivalent to $1030 in today's dollars, so it hasn't increased in real terms for the past 30-odd years.

Re: Is it a loophole?

lakeland27 — Wed, 27 Nov 2013 06:53:46 GMT

agreed. i doubt it can be made to work without costing more than it takes in, gerry harvey's lobbying someone somewhere.

Re: Is it a loophole?

**meep** — Wed, 27 Nov 2013 06:54:09 GMT

In recent weeks, Australian retailers and state premiers have increased calls for the threshold to be lowered significantly below the current $1000 threshold or abandoned altogether, saying it gives foreign retailers an unfair advantage over local retailers

The National Retail Association wants shoppers to be charged GST on overseas purchases worth more than $20.

Chief executive Trevor Evans said earlier this week that the current GST-free threshold of $1000 a parcel was introduced before online shopping became widespread.

http://www.smh.com.au/business/retail/no-gst-on-overseas-online-shopping-this-christmas-20131127-2y99z.html

Re: Is it a loophole?

margomeoz — Wed, 27 Nov 2013 07:15:20 GMT

They may not just be trying to catch the online buyers, there are a lot of sellers that are not even online who bring in less than $1000 worth of good 5 days a week.

It does not cost them any more for multiple freight because they pay by the kilo, but they have to pay nothing on GST or Duty if they do it that way.

Re: Is it a loophole?

spotweldersfriend — Wed, 27 Nov 2013 07:18:47 GMT

It still won't stop me from buying overseas because even with the GST it will still be cheaper.

Re: Is it a loophole?

newstart2380 — Wed, 27 Nov 2013 07:25:57 GMT

@lakeland27 wrote:
agreed. i doubt it can be made to work without costing more than it takes in, gerry harvey's lobbying someone somewhere.

I think this will be one fight Gerry will not win so he will just have to be more competitive and stop offering 2 year no interest payments for which you have to pay full price for the item/s and end up paying far more than is you pay cash or put it on your CC.

Me, if I can't pay for and get a discount for paying up front I don't buy it.

Re: Is it a loophole?

***super_nova*** — Wed, 27 Nov 2013 07:47:37 GMT

In UK the threshold is about 17pounds. If we would go as low as that it would mean that every time you buy something over that value it will have to be carded and when you go to collect it AP will have to get the money. That will be especially annoying to people who work and cannot get items sent to work. And it will mean lot more work for AP, and some POs are already so busy that there is always queue, from the morning till they close - like the one in South Yarra.

They say "substantially" reduce the threshold, well put it down to $500 would be substantial, and would not affect me at all.

Re: Is it a loophole?

donnashuggy — Wed, 27 Nov 2013 08:25:27 GMT

I think spot has hit the nail on the head, my teenage kids will still be able to shop cheaper overseas.

But, I guess the tax collected will be of some benefit - just administering it will be a challenge.

Not sure how it will work if they do it but I know as a seller on ebay that buyers do not like to pay duty and are often unaware of it - especially in the uk.

Re: Is it a loophole?

amber-eyed-girl — Wed, 27 Nov 2013 08:52:44 GMT

The taxes collected will vary depending on what you are buying, the customs website shows the rates for specific categories.

The payment will need to be collected by Australia Post, or handled by a customs broker, who willll charge a fee.

The charges will be, in many cases, a great deal more than purely the GST.

Before the 1000$ threshold, a 220$ dress from the U.S. cost 79$ to release from Australia Post, with GST and other tax.

That same dress was 2365$ in David Jones. I know that may be an extreme example, but I have not forgotten it.

People will still buy overseas, as long as the variety of goods is still so much more diverse, and still much, much cheaper.

Most overseas purchases I make are items unavailable here...

There are greater issues with the abandonment of local retail than saving GST on online shopping.

Re: Is it a loophole?

donnashuggy — Wed, 27 Nov 2013 08:56:43 GMT

Oh I agree with this There are greater issues with the abandonment of local retail than saving GST on online shopping

As if it is going to make a huge difference to their sales - I don't think so.

Re: Is it a loophole?

acacia_pycnantha — Wed, 27 Nov 2013 09:01:18 GMT

There has been a $1,000 import threshold (over which we pay GST and import duties and the clearance broker's fees) for many years now, and due to inflation that threshold figure should be increased not decreased as our today's $1,000 can but much less than our 1980's $1,000 ever could.

Re: Is it a loophole?

amber-eyed-girl — Wed, 27 Nov 2013 10:02:30 GMT

When I bought that dress, the threshold was 50$, it was just before the current 1000$ was introduced.

Parcels were selected apparently at random for the duty, with only a few taxed if it was directly mailed to you, and not handled by a broker.

If the idea is to tax every single parcel, which it is, Customs and Australia Post will be struggling to the point of extreme duress.

Australia Post can barely handle what they do now, let alone being full time Tax collectors.

Staff will need to be hired, which is not what they would want, so changes to the system will not work well at all for staff or customers.

Re: Is it a loophole?

acacia_pycnantha — Wed, 27 Nov 2013 10:52:42 GMT

You can do the paper-work yourself but it's so darn complicated that a broker is needed to get it right.

There's not much admin time spent by Australia Post, they just won't release the item until you front up with the necessary paper-work and the necessary cash.

Re: Is it a loophole?

acacia_pycnantha — Wed, 27 Nov 2013 10:55:23 GMT

What it means to me is that I can't buy stuff on ebay from overseas sellers if the item costs me more than $1,000 postage included, because of the extra charges.

Ebay needs to be on our side on this one cos it's limiting their sales.

Re: Is it a loophole?

amber-eyed-girl — Wed, 27 Nov 2013 10:57:24 GMT

It takes them time to find each parcel ... that will be the issue too. If it is for everything. My local post office hates the idea, they are under a lot of pressure.

Re: Is it a loophole?

cherples — Thu, 28 Nov 2013 00:47:27 GMT

@**meep** wrote:
I think it is a good idea....It should encourage Australian buyers to shop here rather than overseas. It won't be reviewed until March next year I think ??

Gerry Harvey and friends don't seem to understand that not all online shopping is from OS suppliers.

He should "fix" his business model instead of trying to "fix" the tax system to suit himself.

Re: Is it a loophole?

spotweldersfriend — Thu, 28 Nov 2013 01:58:58 GMT

Yes the government will rake in a bit if cash donna,but Gerry still won't get many more customers.In my case its also a matter of getting what I want quickly and not having to wait up to 8 weeks for it to be available.I pretty well just buy music and the discs I purchase OS are not in the racks here,and they are much dearer than the same product bought overseas even when the postage is included.Why does a cd OS cost $16,and the same dusc here is at least double that?