GST on all imports July 2018

[rapadaan]

Yes kicks in  this July  already talking an extra added  $5 security fee !

[brerrabbit585]

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@mineeo21 wrote:

That $2,500 medical device I am talking about is actually made in Australia. The USA also makes it now too, but for less.

I was told be a health practitioner that the reason they are expensive here is because of the Australian Government. In the USA it is offset by the USA Government whereas here that is not the case.

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How is it the Australian government's fault if the US government subsidises the cost for US citizens?  If the govt here subsidised it they'd just have to collect extra taxes some other way.

[digital*ghost]

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@mineeo21 wrote:

Then Japan has changed taxes as I lived there for 10 years.

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Sources: This and this

The only mention of a flat 6% rate is listed as a municipal rate in the first link, and that's stated as being paid in addition to national income tax (under the heading "When to pay taxes?"). 

If the US government are subsidising the cost of medical equipment, then the cost is likely comparable in real terms. Plus, when put into context of the kinds of medical benefits the Australian government subsidises, compared to what the American government subsidises, I think we are infinitely better off even if medical equipment does cost more (in other words, having a medical emergency in Australia is unlikely to send someone bankrupt, or put them into hundreds of thousands of dollars worth of debt for the rest of their life). 

[davewil1964]

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@digital*ghost wrote:

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@mineeo21 wrote:

Then Japan has changed taxes as I lived there for 10 years.

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Sources: This and this

The only mention of a flat 6% rate is listed as a municipal rate in the first link, and that's stated as being paid in addition to national income tax (under the heading "When to pay taxes?"). 

If the US government are subsidising the cost of medical equipment, then the cost is likely comparable in real terms. Plus, when put into context of the kinds of medical benefits the Australian government subsidises, compared to what the American government subsidises, I think we are infinitely better off even if medical equipment does cost more (in other words, having a medical emergency in Australia is unlikely to send someone bankrupt, or put them into hundreds of thousands of dollars worth of debt for the rest of their life). 

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That's provided they can find a hospital who will treat them without insurance before they die.

minee - If something is massively cheaper from the US now, it will be not-so-massively cheaper tomorrow. And now contributing SOMETHING to the Australian economy. Not that you seem concerned about that bit.

[caerwall]

I suspect that our 10% GST will only last at that rate until after the next election - too many tax give-aways on at the moment - they have to pick up some money from somewhere else - a GST hike is so obvious that it hurts.

[lyndal1838]

Only if all the states agree and how likely is that.

Then there will be a cat fight over the distribution of the GST to the states.....WA already thinks the eastern states get too much.

[caerwall]

Interesting - eBay has opted just to charge GST at purchase point where it cannot be avoided and the price is absolutley known. But there are exemptions from GST - will these be allowed on imports? Also goods bought second hand from private vendors in Australia are not charged GST - this is unlikely to be extended to private overseas vendors selling second hand goods to private Australian buyers.

[markac59]

Buying rom overseas ebay sellers usually means you are paying local taxes.  For instance, many items purchased on ebay UK have 20% VAT included.  Technically items exported from the UK should not have VAT included.  For small items its difficult for the small vendors to offer VAT exclusive prices.  Unfortunately many larger more expensive from ltems from larger vendors still have the VAT attached. Now with Australian GST being applied to overseas purchases by ebay users, it appears we are in the unenviable position of now having to pay GST on top of many of the VAT inclusive price on most purchases.

I have used buying from the UK as an example but it is probably the same when buying from most countries. The larger vendors in those countries are adding local GST, VAT or sales taxes to the price.  From today we have to pay GST on most overseas purchases.  This will in many instances amount to tax double dipping and seriously needs to be addressed.  Unfortunately ebay Australia's application of GST to most overseas purchases is very clumsy and invariably we will now be paying GST on top of another country's tax.  Most of us have probably turned a blind eye to paying other counttries taxes on purchases  as we weren't paying Australian GST but now we have to face the situation of paying our local GST on top of another tax, the situation becomes much less tolerable.

This blanket application of GST on overseas purchases from 1 cent upwards has been labelled the "Gerry Harvey" tax.  Rest assured Gerry isn't paying overseas VAT, GST etc. on items he procures overseas for Harvey Norman stores.

[quiffy123]

Just paid my first GST on a purchase from UK, it was listed and charged at payment only,it was shown seperate but the cost shown in my "purchases" does not show the GST portion

Ebay will forward the GST direct to ATO and overseas seller only receives and see,s the original cost minus the GST.

I am a buyer only but I think there will be a lot of worried AU sellers because GST on AU purchases delivered to AU adresses has to have the GST portion included in the sale price, this makes every seller a tax collector and tax payer! ATO will be able to monitor AU ebay sellers a bit easier now because all overseas purchases will have GST paid seperate. 

[k1ooo-slr-sales]

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@quiffy123 wrote:

Just paid my first GST on a purchase from UK, it was listed and charged at payment only,it was shown seperate but the cost shown in my "purchases" does not show the GST portion

Ebay will forward the GST direct to ATO and overseas seller only receives and see,s the original cost minus the GST.

I am a buyer only but I think there will be a lot of worried AU sellers because GST on AU purchases delivered to AU adresses has to have the GST portion included in the sale price, this makes every seller a tax collector and tax payer! ATO will be able to monitor AU ebay sellers a bit easier now because all overseas purchases will have GST paid seperate. 

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Aussie eBay sellers who are required to charge GST are already doing that.  They would have an ABN and would not notice any change in their eBay activity except that they will be just that little more price competitive with overseas sellers now.

Small time Aussie sellers on eBay will not be required to charge GST on sales to Australian buyers . . . . in fact, it is illegal for those not registered to collect GST to include GST on their items.

[davewil1964]

If a seller doesn't turn over $75,000 per year, they are not required (or allowed) to collect GST, nor do they have to remit the nonexistant funds to the ATO. Also, by law, ALL Australian sales are required to be GST inclusive. So the price you see is the price you pay. It is up to the seller to remit any GST portion to the ATO, remembering that the seller will normally have GST offsets, so the amount remitted won't be 10%. They also need to remit income tax.

eBay already reports all sellers with turnover of $10,000 or more per annum to the ATO, so they are already on to Australian sellers at a far lower threshold than the one for the GST.

The only thing that has changed is that GST is now being levied on low price imports. The rest of it is the same as it has been for the last 18 years.