GST on online shopping

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GST on online shopping

Post by Black Orchid on Fri Aug 21, 2015 7:30 am

It comes as state treasurers prepare to meet in Canberra today, where they are expected to sign off on lowering the low-value import threshold (LVIT), agreed to in principle by state premiers at last month’s COAG meeting.

Debate will centre around the proposed level of the new threshold. Treasurer Joe Hockey flagged last month that the online GST threshold “could be zero”. Assistant Treasurer Josh Frydenberg said “it was different in different parts of the world”. “We are making headway,” he told news.com.au.
“The breakthrough was at the COAG meeting.”

Mr Hockey told ABC radio he held preliminary discussions on Thursday night and there “appears to be a consensus” to create an equal playing field for Australian businesses.

If they agree, the Federal Government would then need to introduce legislation to push through the change. The retail industry has been pushing for the threshold to be lowered to “level the playing field”, arguing the tax-free purchases unfairly penalise Australian businesses.

Consumer group Choice warned on Thursday that changes to the threshold could lead to consumers paying a ‘parcel pick-up’ tax when buying goods from small online retailers not registered with the Australian Taxation Office to collect GST.

It argues at the same time, the US is heading in the opposite direction, with a bill introduced in the Senate to increase its LVIT from $US200 to $US800, bringing it roughly in line with Australia’s current level.

The government has been arguing that large online retailers such as Amazon and Book Depository already have the ability to add GST to purchases, but Choice argues consumers could be slugged with unexpected costs.

“If any change mirrors overseas measures, consumers would have to go to their local parcel pick-up, pay the GST and also pay a ‘parcel pick-up’ tax before they can get what they ordered,” said Choice’s director of campaigns and communications, Matt Levey.

“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.
“It would also throw online retail into chaos, as uncollected parcels ordered from unregistered businesses are left to clog up post offices across the country.

“Paying almost $17 in fees to collect $2 in tax would be crazy economic policy. It’s got nothing to do with raising revenue or removing a 10 per cent price difference — it’s about punishing consumers to protect local retailers from global competition.”

http://www.news.com.au/finance/money/treasury-flying-blind-on-online-shopping-tax/story-fnagkbpv-1227492504597


Parcel pickup tax?  Give me a break.


I have been trying to buy a snowboard online all week as they are SO much cheaper in the USA.  It's been an arduous task and I will be really peed off if they want to slug me for future purchases.


Why shouldn't we be able to buy cheaper goods?  
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Re: GST on online shopping

Post by Neferti on Fri Aug 21, 2015 10:15 am

Back in the dim dark ages when I was playing ADVENTURE games (those games that need a brain to figure out, not the mindless shoot ups), I rang Customs to check the Import situation regarding games as they were mostly only bought online in the USA.  At that stage I was told that I could "import" up to $500 worth of games before I got charged Import Duty.

I have no idea what the current position is and I don't buy much from "overseas" anyway.

Customs do check all incoming parcels.  I remember getting a Christmas gift from an American friend.  It was delivered with the box and wrapping and NOTHING inside but a note from Customs.  Customs had removed the "package chicken soup" (why would some Yank send me a packet of SOUP?) I don't blame them (Customs). Very Happy

Aussie goods are so much more expensive because our people get paid a LOT more than elsewhere.
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Re: GST on online shopping

Post by Black Orchid on Fri Aug 21, 2015 11:10 am

I buy a fair bit online.  I hate ordinary shopping.  I have also had quite a few packages sent to me from friends in the USA and none of them have been opened yet.  Luck of the draw I think.

My youngest spent weeks scrimping and saving all his pay to buy expensive snow boarding gear and took it out for the first time last weekend to Perisher. 3 hours later someone stole his board, bindings etc and I know I know "he should have done this" or "he shouldn't have done that" but he was remiss and learnt a very expensive lesson.  Some people are just scum imo.  I hate thieves.

Anyway, I am trying to replace the board for him and it is very hard as there are very few available in the size and colour he had.  If I can actually get one I will save over $500 IF I can track one down.

Most are sent by DHL or USPS from the US for around $100 but when I called DHL in Australia they wanted to charge me $480 just to send it.

If I can save that much by purchasing outside Australia I will continue to do so.
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Re: GST on online shopping

Post by Neferti on Sat Aug 22, 2015 9:53 am

I do a lot of online shopping but mostly in Australia. It is convenient and the delivery service in my area is excellent.

When I was "seriously" playing Adventure games (late 1990s/early 2000s) most of the games were only available from American sites.  I would buy maybe 5-6 games at a time. That's why my call to Customs was relevant. I was spending maybe $200 on a shipment.

The American guy who sent me the dried "chicken soup" (apparently similar to what the Military were eating in Iraq at the time?) .... maybe the sniffer dogs got excited .... has never sent me another "gift". LOL  It (the empty box) was delivered to my door by a Customs Agent. Maybe they thought they were on to some under-cover chicken-smelling-drug deal?  I roared with laughter and the Customs bloke said the "chicken soup" had been passed and I could have it for 40 bucks. ROFL.  I wasn't that keen on trying out Military-packaged food, so declined. LOL

PS.  Good luck with replacing the "snowboard".
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Re: GST on online shopping

Post by skippy on Mon Aug 24, 2015 9:01 am

i buy a lot online nowadays. Most of my wardrobe is bought online now. My son buys games online from overseas, Hong Kong and sometimes the states. 
I mostly buy online for the variety rather then the price although I have bought a lot of things much cheaper buying online. I recently bought a new pair of boots online that were 90 bucks including postage, in a local store around here the same boots were 215.00 dollars. I just think bricks and mortar retailers have to get smarter if they want our business.
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Re: GST on online shopping

Post by Neferti on Mon Aug 24, 2015 10:45 am

I tried the Ezybuy or whatever it was for clothing. FAIL. Had to return them as their measurements were screwed up, nothing fitted me it was all too big. 

Computer stuff, yes, I buy that online. Games via Steam.

I also buy from Myer online.  Delivered the next day or so.

I am not wanting a cheaper item but a quality item.
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Re: GST on online shopping

Post by Outlaw Yogi on Sat Dec 10, 2016 7:33 am

I'm fair bit behind the times.
While I have bought things from online, by sending a money order to them, I've never actually bought anything online.
The one exception being when I got a mate to use his credit card to obtain my laser sight, and compensated him by buying him one too.
I'm temped to get a PayPal account, but have been too paranoid to enter my bank details into the system, despite employers and probably the ATO already having done so.
 
Knew a bloke who got his debit card details swiped while walking down the street in Bundy. Soon after money was being withdrawn in the Philippines despite never having left the country.
Another bloke was on a Whitsunday Islands cruise. Checked his bank account balance via on-board WiFi and 2 hours later the bank rang him to ask if he'd bought anything in London?
 
Before GST I had a Sales Tax Exemption for my business. Sales tax was 20%, then went to 21.5%. Mag wheel repairs was a service to which sales tax didn't apply, and I rarely sold anything so hardly ever had to charge it to customers.
 
I wanted a set of 'Performance Machine' wheels for my bike (96 FXR Super-glide). Sent $5 for the catalogue and never got it. An aunt went to U$A, so I got her to go to the Performance Machine factory when in LA.
 
The wheels were US$400 each and OZ$ were near on parity (mid 90s) at the time. With sales tax [21.5%], import duty [30%] and freight the wheels wound up costing $800 each.
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Re: GST on online shopping

Post by Neferti on Tue Dec 20, 2016 9:23 am

I really do NOT need STUFF ....  I have more than I need anyway ... I shop at Myer Online to get the perfume and face cream stuff ... $300 a time or more.

I buy wine online too ...

I did buy several electrical items a few years ago from Appliances Online .... delivery the next morning.

https://www.appliancesonline.com.au/?gclid=CKCAh7OQgtECFYqTvQodgZ8Nqw
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