GST threshold lowered

[masterstroke.eng]

The Gst threshold is about to be lowered from $1000 to just $20 Are the post office just going to collect the Gst and happily pass it on to the government or add a collection charge on top of it to cover their costs? With the falling dollar and lest an extra 10%+ (and that's been tipped to rise to 15% soon ) on I imported goods certainly going to slow things down .We can expect longer queues at the post office!

[harley_babes_hoard]

it's not about to be lowered, it is just a recommendation at the moment.

All states and territories have to agree to it first and at the moment some states don't want it changed.

[harley_babes_hoard]

http://www.dailytelegraph.com.au/news/nsw/gst-attack-on-online-purchases-under-1000-wont-help-aussie...

[masterstroke.eng]

Just read that article ,but the journalists calculations are somewhat simplistic ,they did not factoring shipping and handling costs which you are liable to pay Gst on . Also purchases over $1000 at the moment attract Gst component on total amount plus a formulae is applied and you are charged a this amount .Just heard on 3aw changes going through

[lyndal1838]

If you do have to pay import charges it is not just the GST charge......with all the charges taken into account the amount payable usually works out at between 20% and 25%.

At the moment I would  not be too worried about it coming into force too soon.....even logistics companies who would be most affected have not been told about it yet.

[harley_babes_hoard]

I think you heard wrong.

This has been on the cards for over 2 years. it's not going to change overnight.

[amber-eyed-girl]

You're right Lyn.

People are being told it is GST to level the playing field.

it can also be charges for a broker, additional charges for specific items, charges from customs for calculating the full charges and an AP handling fee might also add into it considering they keep saying that they are going broke.

from memory any charges I had to pay prior to the 1000$ threshold was in the range of 25-30 percent extra. AP didn't charge then for handling the payment.

[lyndal1838]

You are right Amber.  I was hit with charges a couple of times when the threshold was $400 and I paid closer to 30%.....it always seemed to end up at the higher end of the scale.

The GST was a minor part of the actual charges.  The brokers charges were usually the highest and was the part of the payment that could vary substantially.   If AP decides to go into the Broking business I suspect their charges will be very high.....they are not known for keeping their charges low.  And a handling fee would really open the flood gates.

[misterforgetfulsbooks]

Easiest method would be for Ebay to collect the GST on the item price from all items sold on its platform in Australia - level playing field.

[lyndal1838]

That can not happen unless the Government changes the law.   Ebay is a foreign registered company and cannot collect GST.