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Treasury flying blind on online shopping tax

Discussion in 'Living Room' started by Azazel, 22nd Aug, 2015.

  1. Azazel

    Azazel Well-Known Member

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    "Treasurer Joe Hockey has confirmed the GST will apply to all overseas online purchases from 1 July 2017"

    This is pretty suck-worthy, considering not every small online seller is going to register for GST and:

    “Under the same approach as the UK system, a $20 book purchased online from an unregistered business could end up costing an extra $2 in GST, plus $16.97 for the parcel pick-up tax."

    http://www.news.com.au/finance/mone...ine-shopping-tax/story-fnagkbpv-1227492504597
     
  2. jim1964

    jim1964 Well-Known Member Premium Member

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    "Hello, Amazon? Joe Hockey here. We're just wondering if you'd like to register for GST?" "HAHAHAHAHAHAHAHA*click*bzzzzzzzzz*" "Um. Hello?"
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Stupid policy pandering to retailers who feel hard done by as sub-$1k imports are GST free. An extra 10% will make little difference when prices at hardly normal are 40-50% above the Internet thingy.
     
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  4. proper_noobie

    proper_noobie Well-Known Member

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    So I'll just request all my purchases to be marked as a gift. Half of the Chinese sellers already do.

    "I'm a popular guy. All these people in Shenzen send me presents all the time"
     
  5. Bayview

    Bayview Well-Known Member

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    The problem is; the whinging is valid.

    Consumers don't seem to care that over the next 10 years, possibly 40% of retail jobs will disappear to online shopping....just my prediction; based on observation over a few years....it's all about the best price, and if it is from O/S through an online store; that's where the dollars are going.

    The oldies are still buying over the counter, but each generation of shoppers is becoming more internet savvy and conditioned. The writing is on the wall for many retailers around Aus - small and large....many will still be in business; but with a fraction of the staff.

    And here we all are; crying about the current unemployment rate. o_O

    It doesn't worry me personally, because folks still need their cars fixed, they need tyres on their cars (whether I supply the tyres or merely charge them a fitting fee for the tyres they've bought online), and they still need to get their cars roadworthied. I can plod along with one staff and/or just me until I die most likely....would I like to employ 10, 20, 30 people? Sure...but the trend isn't there anymore.

    But I feel for all those jobs that have been there since I was a kid; providing jobs for teenagers working part-time in shops for extra pocket money, and housewives working a few hours during school hours, etc.
     
    Last edited: 23rd Aug, 2015
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes, I think it is a good thing.
     
  7. Chilliblue

    Chilliblue Well-Known Member

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    Why can't we now insist that imported products be of the same standard as required by Australian law for Australian businesses

    By that I mean imported food be grown, manufactured and of the same quality as that of the Australian one.
     
  8. Perthguy

    Perthguy Well-Known Member

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    Online sellers won't have to register for GST.
     
  9. Bargain Hunter

    Bargain Hunter Well-Known Member

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    The overseas online sellers not only avoid GST they have heavily reduced postage rates. At times they can sell and ship products for less than the postage costs for a local seller.
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Who are the OS freight forwarders screwing if they can get something delivered from OS for less than we can do it locally? The local component doesn't change AFAIK.
     
  11. Azazel

    Azazel Well-Known Member

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    No they won't have to. But if they aren't registered, Australia Post or the courier will have to assess the applicable GST. And as above, there will be a processing fee eg. $10 CD purchase + 10% GST of $1 plus a $16 processing/pickup fee so total cost $27. Awesome.
     
  12. Perthguy

    Perthguy Well-Known Member

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    Where are you getting the $16 processing/pickup fee from?
     
  13. Casteller

    Casteller Well-Known Member

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    Marking it as a "gift" doesn't make any difference. I just received one in Spain labelled gift, I had to pay 10 euro vat (my offer) plus 18 euro processing fee. Same goes in Switzerland, but more expensive. The processing fee makes it usually not worth it.
     
  14. Be Developer

    Be Developer Property Developer Business Member

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    "We will send out officials to big retailers to get them registered for GST"

    We don't see ATO offical coming to our door and say would you like file tax return?;)

    Why such a red carpet treatment??:rolleyes:

    Another great idea to abuse Travel Allowances!!
     
  15. skater

    skater Capitalist Premium Member

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    It certainly does change. I'm sketchy on the details, but Australia Post deliver thousands of items each day coming from China etc. A small (under 500g) parcel sent in Australia will cost $7.45 yet if you look on places like Ebay, you will find things 'free' postage coming out of China for much less than this. Similar, I''ve seen things (larger items) coming from the UK with the postage componant less than it costs me to send to Perth, from Sydney.

    It has to do with some kind of international treaty. Like I said, I'm sketchy on the details, but there is some kind of deal in place.
     
  16. Azazel

    Azazel Well-Known Member

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    From the linked news story that is also quoted in original post at the top of this page.

    "Smaller operators, if they choose not to register, would have to have their packages assessed for GST liability by Australia Post or a private cargo operator, which would incur a processing fee."
     
  17. Lizzie

    Lizzie Well-Known Member

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    That's going to happen regardless of online GST or not ... although ... for the very "jobs for teens" reason, I never use the self serv checkout even if I've only got a couple of items. A lot of other people in our area (young and old) seem to think the same way.
     
  18. Lizzie

    Lizzie Well-Known Member

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    I have bought things from China online, that retail for $1 including postage ... with no minimum order ... only thing is I normally buy 100 at once

    But hey - if Australia Post has to inspect every package that comes into the country - which I imagine is hundreds of thousands a day ... think of all the new job :D
     
  19. Azazel

    Azazel Well-Known Member

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    That's the thing - if that seller is not registered for GST in Australia, that $1 item could become a $17 item.
     
  20. Perthguy

    Perthguy Well-Known Member

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    I see. So we really have no idea how much the processing fee will be. Better hope it doesn't go through customs. They have a $50 processing fee per parcel! :eek:

    http://www.smh.com.au/business/reta...ers-win-online-tax-fight-20150618-ghqwbz.html

    Personally, I don't see what the fuss is all about. Online retailers operating out of many countries have registered for VAT so it does not have to be paid at point of entry. Bigger online retailers will do the same for GST. It will give them a competitive advantage and cut down point of entry processing. With the goods I buy from overseas (cycling parts), something might cost $650 locally but I can get the same thing shipped for $300. I would not care if they added $30 GST to that plus a processing fee of $16. I would still be miles ahead.
     
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