GST for Online Purchases
 

It appears the the retailers are pressuring the government to impose GST on all online purchases.

In the news today

"The federal government is playing down reports it is considering applying GST on more imported goods in an attempt to help retailers struggling to compete against online shopping.

"There is no policy proposition about GST on online shopping," Assistant Treasurer Bill Shorten told ABC Television on Wednesday.

Local retailers want the government to help them as the rising Aussie dollar entices shoppers to access online sites overseas for the GST-exempt purchases.

Imported goods worth less than $1000 are exempt from the 10 per cent tax.

However, Mr Shorten acknowledged the concerns of retailers.

"We'll have to work something out to see if it's administratively feasible," he said.

The opposition accused Mr Shorten of creating unnecessary uncertainty for local consumers and business in the lead-up to Christmas.

"Yesterday, he was considering imposing GST ... Today's he's not," opposition frontbencher Mathias Cormann said.

"Shorten tax policy doesn't even last from dinner last night to breakfast today."

Senator Cormann said the government always was looking for an opportunity to impose more taxes.

Current GST arrangements on online purchases from overseas did not need to be changed, he said."


Warren

It will never happen unless they can find a way to actually take the GST. The overseas seller can not charge GST because they wont return it to the Aust Government. The only way i can see them doing it is by coming up with a way to do it through the credit card companies.

Maybe if the supply chain was reviewed they might be able to find where all the money is going for local purchases. It is funny that i can buy some things from America cheaper than a local retailer gets it wholesale.

Seems global trading is good for everyone except the local sellers. Dont get me wrong i do also understand the impact it has on our local ecomomy. But why would you pay double when you can wait a couple of days have it delivered to your door for half the price.

Money for nothing
 

Yesterday I was looking for a clutch for number 1 son, ran a local speed shop and I was quoted $1200.00, rang another and was quoted $1100.00.

I was suprised at the price and asked if that was the best they can do and he instantly dropped it to $717.00.

Pays to shop arround, even if it is overseas.

Phil

This issue craps me off, the local distributors and some retailers have been ripping us off in the conversion for years, and more so now, The crying retailers never pass on any of the benefit from the lower US$, maybe if they gave a bit, the consumer would give a bit.

I'd love to tell you a story about a mate importing an identical bike to mine (Yam WR450) and paying 5K less, but i'll cry and beat up my pc as i write it.

I'm looking at shocks at the moment, Koni 8212's in OZ $980, ex US $550 AU delivered, and the US guy is making his full margin on it anyway.

I would not be surprised if the retailers are being used as an excuse by the government to justify the claim, in order for them to recoup lost revenue through on-line trading.

Retailers can sell half as much and still make the same amount the way things currently stand. And for what its worth there are still plenty of people not buying on-line.

Perhaps I'm being cynical, but I smell a rat... a nice big bureaucratical one...

Best wishes to all,

PS:
It's not the GST that stops us from purchasing local.
Its the rip off prices - GST on US$550 is less than $60 bucks.
That's not enough to stop me from buying local but the $400 difference in mark up is unjustifiable.

As stated early in this thread, I am not sure if it is all mark up?

I recently purchased (well ordered still awaiting delivery) of a 1/8 scale race truggy.
http://www3.towerhobbies.com/cgi-bin/wti0001p?&I=LXYUN3
Listed price is $579us, well I also had a "discount voucher" (they send you these just for creating a user account) that entitled me to $125us off the retail price, with freight included and credit card charges it has cost me $539au delivered.

Before I hit the buy button I did contact a local guy who runs a hobby shop from home but is an agent for this brand (I went this brand so parts back up is not hard) and when I showed him the price he would need to get close to he said that was about $300 less than it would cost for him to buy through Australian warehouse.
Now I am not saying he told me the truth 100% but he did not even try to get a price as he knew his supplier could not match it.
Sadly he is thinking about closing up as he just can not compete with online prices.

Still 10% GST on my online buy price would still be no where near enough to "make" me buy local though.

You've only to look at tyre prices to see how we are being ripped off.
315 x 35 x 17" Sumos local $800 - Tirerack $96. Case closed your worship.


I heard Jerry Harvey,CEO of Harvey Norman winging on the radio last night about how retailers were really feeling the pressure because consumers were buying online instead of through retail stores. Well Jerry, I'm really sorry for you. Your profits might drop down into the 10's of millions now instead of the 100's of millions realised previously.

If your feeling the pinch, sell a few thor'oughbreds.


Baz

Heard a local LARGE retailer bleating today on the radio about how people would be unemployed, landlords would not get rents, the government doesn't care and he then went on to say that his wife and daughter both shop online O/S for clothes because of the great bargains to be had.
The retailers also claim back the GST

About to order wheels from US, better extract the digit.

Good point Baz,
He's been lobbying the government for the last two years about this.
Jeez, half my house has been furnished by Hardly Normal, well tvs, fridges etc

Dont talk to me about Harvey Norman.

I do like the Free Trade Agreement.

Boxhead,

Towerhobbies is a great store. I have bought all my radio control plane stuff from them and save heaps. They are very international friendly and packages arrive to sydney in about 4 or 5 days. Hobby shops here just charge way too much.

Strida, i bought my wheels from Wheelboyz in QLD. I priced getting them from the states and wheelboyz were only about $100 more without adding the duty and GST which i was uncertain on the amount.

Depending on what type of wheels you are after its worth calling them. I got a good price on custom offset American Racing wheels sent to sydney. I got the torq thrust wheels, but they also have a nice looking cobra wheel.

www.wheelboyz.com

Hi Zedn,

How long ago did you get your price from Wheelboyz?

I have just got of the phone with them and was surprised at the quote they gave me for a set of Cobra Wheels. I was looking at 15x7 and 15x10 and they quoted me $2240 to Adelaide. The same order from a US wheel supplier was $1175USD - granted at this stage I am waiting for shipping cost from US to South Aust. plus any duty payable due to the order being > $1000.00.

So if the freight and handling/duty charges are somewhat less that a $1000 then I think I will order from the US dealer.

What was the freight component/duties on your order?

Cheers

Roy

It was about 12 months ago. Price from America was $2080US plus duty and GST including postage with the dollar buying about US$0.90. WheelBoyz were around about $2200 including postage and GST. They would have worked out about the same so i went with the Australian company. That was for American Racing Torque thrust II polished wheels in 17x11 and 17x9 with custom offset on the rear and standard offset on the front.

PS you can budget for between $350-$400US for postage. That was the range of quotes i got. I think Vintage Wheels had cheap postage. Mind you that was to Sydney.

Thanks Zedn, I appreciate your feedback. Yes it may not be worthwhile buying from the US if the freight is that much.

Cheers.

Two things in life we can count on death and taxes. If there is smoke the is fire the tax is coming.

An Italian friend of mine buys all of his dried and packaged food pasta and tins etc from Italy 1/3rd the price of local supermarkets. Good stuff and delivered to his door by sea freight.

Jerry Harvey is a whinger...I bought a camera and lense package a couple of years ago from an internet dealer and the price is still lower than local Harvey Norman shops can match. The internet dealer is in Victoria !

That is the real point Rob. These guys are using their political influence with Labor and Liberal to try to get GST added on purchases below $1000. They say the 'cheap' US, online items are the problem that they face. However, the online goods here are the major competition in gross terms that they have and they should stop complaining and look to their marketing and cost structures.

Thats very true. I buy all my computer gear online from australian sources. Most of them have actual shop fronts as well so you cant say they dont have overheads.