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...
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.
I doubt it because it will cost more money to manage than it will collect from the tax.
Won't happen.
^^^ 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
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.
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.
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.
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 !!![]()
^ That's a good point about Bunnings
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.