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Forums > General Discussion   Shooting the breeze...

GST on import ?

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Created by Macroscien > 9 months ago, 19 Sep 2012
Macroscien
QLD, 6809 posts
19 Sep 2012 9:36AM
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Are they going to to lower limit from existing $1000 to just $30 on every item brought from overseas (?)

I guess - re packer and valuer will be the most common look forward speciality now...

Mobydisc
NSW, 9029 posts
19 Sep 2012 11:09AM
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Last I heard GST is exempt for imported items worth less than $1000. Some prominant retailers complained but the relevant ministers said forget about it.

This will become more of an issue as the GST is raised. Its inevitable the rate of GST is raised as government will need more and more revenue. Unfortunately so much money is wasted by government. It doesn't matter if its Liberals or Labor, its the system.

evlPanda
NSW, 9207 posts
19 Sep 2012 11:46AM
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I doubt it because it will cost more money to manage than it will collect from the tax.
Won't happen.

kk
WA, 953 posts
19 Sep 2012 10:01AM
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^^^ Costing more to collect than it's worth = wasted money= standard goverment practice.

It will come down to more of a case of the lobbiest, unions and retail sector vs votes lost if they introduce it.

The political system has two goals; #1 to get elected #2 to extract as much money as possible from those that produce wealth (+gdp) to keep the ever increasing public sector (-gdp) happy

Gorgo
VIC, 5127 posts
19 Sep 2012 12:42PM
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GST on internet imports is proposed for two reasons:
1. to recoup the money lost to State governments
2. to reduce the price advantage of internet stores

You could probably do 1. by pushing the task onto the retailers.

2. would make no difference. Internet stores are often 50-70% cheaper than local stores, or have stock that local stores do not carry, or offer much better service than local stores. They are going to have to try much harder to compete other than forcing a 10% price rise on internet stores.

Macroscien
QLD, 6809 posts
19 Sep 2012 12:50PM
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lets do simple calculation

if the price in mortar retail for product is = $x now

how much it will be after introduction of this new tax on import ?

x ?


on another hand we could solve unemployment problem this way no wait.. they need to fire all posties that carry this now to your door...
if I look at the mountain of the junk I did imported this way recently: everything from electronic components $2 each to anemometer $80 I have no clue how they intend to verify each single parcel.

Kiting
77 posts
19 Sep 2012 11:09AM
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Macroscien, this is exactly how this gov operates.

Make reactionary policy decisions to whoever lobbies the loudest. Think about it later, discover the consequences later.

Macroscien
QLD, 6809 posts
19 Sep 2012 1:26PM
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Kiting said...

Macroscien, this is exactly how this gov operates.

Make reactionary policy decisions to whoever lobbies the loudest. Think about it later, discover the consequences later.




the loudest are appliance and furniture retailers! HN to name the leader..
If anybody ever bought queen size bed or washing machine overseas ?
$1000 is a lot of money, shipping cost is substantially more on big item
I am confused...

pweedas
WA, 4642 posts
19 Sep 2012 11:30AM
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Kiting said...

Macroscien, this is exactly how this gov operates.

Make reactionary policy decisions to whoever lobbies the loudest. Think about it later, discover the consequences later.




Ain't that the truth.

Macroscien
QLD, 6809 posts
19 Sep 2012 1:37PM
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I do shop on-line (eBay) predominantly for one reason:

I could find a product easy, the price is secondary.

If I could buy locally from Aus online dealer, I buy from him first. No brainier. Quicker and warranty onsite.

But many of our retail chains don't go online at all. Look Bunnings - my favourite !!

evlPanda
NSW, 9207 posts
19 Sep 2012 2:01PM
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^ That's a good point about Bunnings

Kiting said...

Macroscien, this is exactly how this gov operates.

Make reactionary policy decisions to whoever lobbies the loudest. Think about it later, discover the consequences later.



Except they don't? They haven't.
Where is this in legislation, or in proposed legislation, exactly?

I like facts.


Last year the Productivity Commission found that lowering the GST threshold to $20 on imported goods would raise in excess of $500 million in tax revenues, but the cost of parcel processing using the current system would jump by almost $1.6 billion - three times the additional revenue collected.

theconversation.com/new-gst-for-online-shoppers-unlikely-experts-say-9408


It's so obviously not going to work, which is the reason the $1,000 threshold exists, already. It's just Harvey and Co. jumping up and down and making noises.

Also, it could well be argued that Harvey's profit has dropped not because of internet competition but simply because the prices of the goods he is selling have dropped, and along with it his profit margin. Compare retail prices now to five years ago.

"If you don't sell on the internet you won't be in business" - 1995

Mobydisc
NSW, 9029 posts
19 Sep 2012 3:35PM
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If a financial cost/benefit analysis was done on all public sector activities possibly a number of activities would have to be questioned as to what they are actually doing. There could be some activities worked on by the public sector that have little to no impact on the life of any Australian citizen besides those pulling a good income and benefits from this activity.

This is all well and good in a country that has entrepreneural citizens and natural wealth to pay for the public sector and public goods. However as we are seeing in the USA today, even the richest and most powerful country in the world can become broke if it lives beyond its means.

gcdave
534 posts
19 Sep 2012 5:01PM
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Mobydisc said... However as we are seeing in the USA today, even the richest and most powerful country in the world can become broke if it lives beyond its means.


Just wait until the yanks again refinance 15 trillion bucks and the arab emirates establish a currency to buy oil in apart from the US dollar



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Forums > General Discussion   Shooting the breeze...


"GST on import ?" started by Macroscien