@teldrassilx wrote:
Hold up so the 10%+ GST only applies to things that have a shipping cost?
Edit: Who the ef is 'Gerry Harvey'?
teldrassilx, can you start your reply posts with “@userID” so we know who you are replying to. So, a reply to any of my posts would start with “@k1ooo” (you can use abbreviated IDs, just so long as we know who you are replying to).
I assume that your reply is to my post since I am the poster who first mentioned Gerry Harvey.
What I posted was:
So the GST will add 50c or less to the item cost of the things you usually buy (if the stuff you buy is from China then chances are it has free postage which will not attract any GST on shipping).
I’m not sure about your thought processes seeing as you have interpreted replies as saying that GST only applies to items with a shipping cost . . . . . . or, are you just winding us up?
I’ll assume that you are genuine in asking “so the 10%+ GST only applies to things that have a shipping cost?”. The short answer is NO.
Since 1st July, the GST now applies to ALL eBay items that are bought from overseas sellers. If the seller offers free shipping, as many Asian sellers do, then the GST is levied against the item cost. For an overseas item that has a postage charge then you pay GST on the {item + shipping} cost. If it is shipped using the Global Shipping Program (GSP) then you will likely be charged an import charge by Pitney Bowes, and this import charge is subject to GST.
Gerry Harvey (of Harvey Norman) did lobby the Coalition Government to have GST applied to imports purchased online as he argued that Australian business was disadvantaged as they had to charge GST and could not compete with overseas retailers whose items did not attract GST on items below A$1000 value.
@allpostersontheseboards
On these boards, many posters have laid the blame for the introduction of GST on low-cost imports squarely on Gerry Harvey. While he was the public face of retailers lobbying the government, he was not alone. I contest that people love to have an individual to blame, and Gerry fits the bill. Some years back he was on every TV network making the case for GST on all imports. He has made himself an easy target.
In my opinion, the blame lies with consumers (us) and Federal Governments (past and present). Consumers have embraced online shopping and hate changes that increase the cost of items (you never hear consumers complain when prices drop though). However, it is not entirely their fault as when the GST was introduced in 2000 there was very little, if any, online buying by ordinary citizens. One could hardly blame the Howard Coalition Government of 2000 for not anticipating the level of ecommerce in 2018 and the growth of online platforms such as eBay.
So, including online imports in the GST taxable items is just an evolution of the GST tax legislation. It is not fair to argue that the original GST legislation should apply for all time without change. All legislation should be subject to review and amendment as circumstances change.
As others have posted on other threads, we had it good for many years in being able to buy items GST tax free. It was inevitable that the GST would be extended to include imports to items valued at less than $1000. The removal of any tax-free threshold eliminates avenues for tax avoidance/evasion.
