Is it a loophole?

[donnashuggy]

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.

[**meep**]

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 ??

[donnashuggy]

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)

[crosbystills]

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.

[lakeland27]

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

[**meep**]

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-20131127-2y9...

[margomeoz]

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.

[spotweldersfriend · Accepted solution]

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

[newstart2380]

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@lakeland27 wrote:

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

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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.

[***super_nova***]

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.