GST on Imports

[jimbur]

I notice there is talk about trying to levy GST on imports worth less than $1000 using the argument that it is bad for local business having to compete on unequal terms with overseas companies who sell on the internet.
Do Australian companies exporting send the goods GST free in the same way and, if so, is it levied by the overseas countries at their rate.
Are local businesses really suffering through the current GST policy on imports?
Any facts or thoughts?
Cheers,
Jim

[johnc]

GST is not charged on goods and services sent overseas, that includes overseas airfares. As for other countries tax regimes on imports that depends on that country.

There is an issue regarding those effectively operating online in Australia but based overseas using sites such as Ebay. These are operating at an advantage to a similar Australian based business and we all pay for this and shouldn't be.

As for the $1000 limit, I doubt eliminating that will make much difference, the cost of freight probably negates the gain, the real issue is the difference in base price which is often far greater than a 5% tarrif plus 10% GST. The cost of collecting such a tax on all people bringing in duty free from their trip or posting home would possibly be far greater than what they would collect, and much would still be missed unless we start opening all parcels as they arrive.

[snowyskiesau]

The perceived loss of sales to local retailers is purely due to the price saving by buying overseas. GST is not the issue - except perhaps for the government.
In most cases, even if we were forced to pay the GST on imported goods, we would come out well ahead.

If a local business is selling to an overseas buyer, then there is no GST payable. There may be a GST or VAT imposed by the buyers country but that is not the responsibility of the seller.

[Waldo]

It will happen no doubt, given we have a government who pander to the Left instead of getting on with real issues.

[johnc]

It will happen no doubt, given we have a government who pander to the Left instead of getting on with real issues.

Thats just showing your own political colours, the legislation was set in place by the blue team, and other than a few soothing noises there is absolutely no sign the red team intend changing anything. Lets not mistake casual words with anything resembling an intention to spring into action.

[Waldo]

Not quite, a look back at last nights Lateline Business will confirm that Labor are going to look into it.

Government considers GST on internet shopping - ABC News (Australian Broadcasting Corporation)

[Bob38S]

And all of this has come about because of poor old "Hardly Normal" who fears that someone else may be saving a $ and not buying from him at his inflated prices. The prices would have to be inflated as he buys from overseas at a better price than you or I could and he has to pay for those moronic, incessant, mind numbing, boring excuses for TV adverts. Let's face it, if he halved his advert budget the message would still get out [to those who may be slightly interested] and he could then afford to lower his prices so that he could compare more favourably with those buying in from overseas.

[Waldo]

if he halved his advert budget the message would still get out

Harvey keeps his advertising in-house and is the most desirable ad budgets in Australia, and every agency would love it if he outsourced it. His budget is the largest non-governemnt annual budget of $300,000,000 over Australia, Ireland, Slovenia, Singapore and Malaysia. $130,000,000 was the spend in Australia last year.

[silentC]

I wonder if he pays GST when he runs ads overseas?

[Bob38S]

Harvey keeps his advertising in-house and is the most desirable ad budgets in Australia, and every agency would love it if he outsourced it. His budget is the largest non-governemnt annual budget of $300,000,000 over Australia, Ireland, Slovenia, Singapore and Malaysia. $130,000,000 was the spend in Australia last year.

How nice it is to see that he spreads the wealth around.

However, if the adverts I have seen [when the mute or channel changing button are not quick enough] are an indicator of what this sort of money buys then I should feel sorry for him as he is being short changed. I wonder if he gets to write off his advert budget on his tax?

[jimbur]

However, if the adverts I have seen [when the mute or channel changing button are not quick enough] are an indicator of what this sort of money buys then I should feel sorry for him as he is being short changed. I wonder if he gets to write off his advert budget on his tax?

What frightens me is that there is a whole industry that does nothing else but think up that mind-numbing garbage and we are subsidising it to the extent of the tax deduction.
Cheers,
Jim

[bsrlee]

I'm with Bob38s.

Its just another 'have' trying to bash the 'wish they hads'.

Australian 'white goods' sellers are not affected in any meaningful fashion by sub-$1000 imports - how many people could really import a fridge or stove? OzPost won't handle anything more than 1 metre long.

Harvey Norman used to sell second rate products at a good price, they now sell third rate products at a considerable premium over Australian retail prices (e.g 1 Tb USB drive $149, sells elsewhere for $95) and the staff treat the customers like excrement. All Gerry and his ilk want is to make Australia into a 'company store' where you have no choice about where you shop & you have to pay inflated prices.

[TP1]

The issue of people buying goods overseas comes up from time to time and is a political, not a true economic issue. Australia suffers enough from the lack of proper competition and an attempt to restrict Internet buying is not warranted because as we know, the major retailers have not suffered at all, they just want to charge prices that are often the highest in the world. They can only do that without internet competition.

The rules for private importing were made under the previous government and the special interest groups failed to have things changed. They think that the Labor government may be persuaded to make things more difficult for Internet shoppers. They will dangle employment as an issue. It isn't of course because they only want to levy higher prices,

Let's hope they don't succeed.

[BobL]

Many years ago - ie well before the web - I ordered some "cheap" software on 5.25" floppies from Singapore. A week or so later I got a telephone call from the post office to come in an answer some question about a package that had arrived with my name on it. Terrified that someone had placed some white powder inside my package I went in where they asked me to open it which I did and all that was inside were a couple of dozen floppy discs. Several customs officials came to look at these strange items and ask me about them - one of them even held them up to the light and looked at them like they were film! They then asked me the value of the package which had no paperwork with it. Fortunately the company had sent me a receipt by snail mail so I went home to get it. I was then interviewed by a senior customs official who told me I was going to be charged duty on the floppies themselves - not the software because they had no schedule for software. Anyway it turned out that the amount was going to be $18.10c and as it was less than the point at which they started collecting ie $20 there would be no charge. All up I guess this took me 3 hours.

[acmegridley]

One of my last jobs before I retired was working for Hardly Normal I could tell you a few stories about their practices but legalities prevent it.Never purchased anything from them since.