New parcel tax coming

[stickerswa]

Just read this ..

"Aussie shoppers may soon have to pay a $5 tax on every parcel posted from overseas under a federal government plan to cover skyrocketing security screening costs."

It wont affect me as I dont buy from OS but I am sure this will affect a lot of people. Could be a good thing - might make folks stop (or slow down) purching from China and make local stuff more appealing.

I can see down sides too but for ebay sellers at least it could be a good thing .  

Thoughts !  

[kopenhagen5]

Agree, good for local business.

Also good if it funds for better screening processes.

Lets not forget these stringent security measures were not as necessary decades ago.

[clubesquire]

Call me the last standing cynic. $1.00 to improve screening measures. $4.00 to consolidated revenue.

Increased, or new taxes to me always indicate a Govco in need of padding out another black hole.

But yes, it could be good if allocated appropriately.

Melina.

[digital*ghost]

All I can see is an increase in sellers using bulk shipping methods to Aus, and then distributed once they are here (large sellers, anyway, maybe it will create new businesses for smaller sellers to take advantage of the same thing). 

eg 1 parcel containing 50+ packages nets $5 instead of $250+. 

[everard6920]

I'll believe it when I see it.

I'm sure most people here rememeber the fuss regarding last year's proposed GST on imports under $1000. Haven't heard anything about it since.

Unless they've come up with some revolutionary, cost-effective way to collect it, then it won't happen. AP stated last year that it was not cost-effective for them to collect the 10% GST on imports, so one can assume that it isn't cost-effective to collect $5.00 for every import, either.

eBay even threatened to pull out of Australia over last year's proposal. I imagine this proposal would have similar implications for them, if the government is planning a vendor-collects-it model.

[zanadoo_56]

That's bad news for collectors where the items simply aren't available in Oz.  Another dumb idea not thought out....as usual.

[tennis_sweetspot]

It is still coming July and ebay ect will be collecting it.

[imastawka]

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@everard6920wrote:

I'll believe it when I see it.

I'm sure most people here rememeber the fuss regarding last year's proposed GST on imports under $1000. Haven't heard anything about it since.

Unless they've come up with some revolutionary, cost-effective way to collect it, then it won't happen. AP stated last year that it was not cost-effective for them to collect the 10% GST on imports, so one can assume that it isn't cost-effective to collect $5.00 for every import, either.

eBay even threatened to pull out of Australia over last year's proposal. I imagine this proposal would have similar implications for them, if the government is planning a vendor-collects-it model.

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Legislation was passed in January for this tax.

https://www.ato.gov.au/General/New-legislation/In-detail/Indirect-taxes/GST/GST-on-low-value-importe...

[brerrabbit585]

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@clubesquirewrote:

Call me the last standing cynic. $1.00 to improve screening measures. $4.00 to consolidated revenue.

Increased, or new taxes to me always indicate a Govco in need of padding out another black hole.

But yes, it could be good if allocated appropriately.

Melina.

---

Nah, $4 for administrative costs, and it'd probably cost more than that. 

How many taxes have the govt stopped charging because too much of it was lost in administrative fees?  I remember one in the 90s for the maintenance of waterways etc  that was added to our rates and they stopped it after two or three years because a large percentage was going on admin costs to collect it.

[everard6920]

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@imastawkawrote:

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@everard6920wrote:

I'll believe it when I see it.

I'm sure most people here rememeber the fuss regarding last year's proposed GST on imports under $1000. Haven't heard anything about it since.

Unless they've come up with some revolutionary, cost-effective way to collect it, then it won't happen. AP stated last year that it was not cost-effective for them to collect the 10% GST on imports, so one can assume that it isn't cost-effective to collect $5.00 for every import, either.

eBay even threatened to pull out of Australia over last year's proposal. I imagine this proposal would have similar implications for them, if the government is planning a vendor-collects-it model.

---

Legislation was passed in January for this tax.

https://www.ato.gov.au/General/New-legislation/In-detail/Indirect-taxes/GST/GST-on-low-value-importe...

---

Indeed, but they STILL haven't explained:

1. How they're going to determine if an overseas vendor sells more than $75,000 per annum to Australian customers, which determines whether or not they have to charge the tax. Seeing as these vendors are based overseas, good luck with that.

2. What they're going to do if an overseas vendor simply doesn't do it. Block the site? There's still email, social media, etc from which the vendor can sell from. They can also use a range of addresses to import with. They can be running a lucrative business and still manage to make it look like my cousin, Joe, has sent me some stuff, and I won't have to pay. In effect, they'd need to keep a running tally of everything Joe has sent me throughout the year, in order to counter this. And then they have to do that for everyone else, too.

3. How much trying to make overseas vendors do this is going to cost. As per the legislation, documentation has to be supplied within the customs documentation, detailing the tax. That means examining every. single. package that comes into this country.

This idea was a mess last year, and it's a mess this year. That's why it was pushed back a year.