Phil's romantic notions on kite flying and GST

www.abc.net.au/news/2012-09-21/janda-democratising-tax-evasion/4272502

Take the time to read the above article on the gst by Peter Janda, it is in relation to why the Government is forcing you to buy your kites offshore.

Now my response is that maybe as avid kite flyers we would rather be Peter Pan than Pirate Mitt Romney Hook. Remember GST revenue goes to the states to fund Childrens Hospitals, just like the royalites from Peter Pan funds the Great Ormond St Hospital, as seen in the Olympics opening ceremony.

The consumer is not to blame for this, the retailer is not to blame, but 'the system' blows.

Are you serious? Perhaps not so much in kite boarding, were everything seems discounted anyway, but as far as electronics are concerned greed is very rampant.

I give you an example. Recently, a Harvey Norman store in Chatswood closed it's doors and had a closing down sale. They where selling Canon flash units at supposedly 30% off. When I checked the price I nearly laughed out loud. The price they asked was 5% below RRP.

A quick check showed that two camera stores in New York where selling the same flash for about 30% below RRP ex shipping. I then called a couple of Canon pro retailers in the Sydney CBD to get a quote for said flash. Both quoted me a price that was exactly the price the US based store quoted + GST + Shipping but with Australian warranty. All up I would have saved $54 by ordering in the US. But because I am GST registered I actually got it $4 cheaper here in Australia.

Harvey Norman obviously had a an original asking price that was 25% above recommended retail. A lala land price that might have worked 20 years ago but won't fly in today's global economy. I don't know what Harvey Norman's motivation is. Greed perhaps but let's be clear about this. The GST discussion has nothing to do with supporting a Childrens Hospital and all to do with local billionaires like Gerry Harvey trying to protect their old business models.

Wake up and don't be sucked in by the lobby group propaganda. I actually wonder if ThePhil is actually Gerry Harvey trolling internet forums.

Hi Gerry (sorry Phil) welcome to seabreeze . sorry to hear about the lousy service report in the media you must be disapointed .Now re GST my bro in law runs a very successful bricks and mortar and online reatil operation based right here in Oz and has a strong export market despite the strong aussie dollar .Yes its in an industry where many players are dropping like flies .Rather than bleating on about the GST impost and blaming others he is happily getting on with business and has a strong focus on service .People seem to like that .Also GST in a mixed business where there is GST on some things and not on others is far more of a pain in the buttola .my suspicion is that some business people in Australia are quick to blame others and would rather try to hang onto the good ol days and hang on to fat lazy profits and nice little "arrangements" that foster this . I would suggest that you lower your sights onto Aussie banks .they are a far greater impost on our economy than anything else .

Anybody who does any shopping on the internet knows that the GST argument is rubbish.

Internet prices are often 40-60% lower than shop prices. Add in the GST and internet prices would only be 4-6% higher and they would still be better than 30% cheaper.

My reasons for buying from the internet:
- cheaper prices
- better range of products
- better service
- safety (no questions refunds, PayPal buyer protection)
- ease

Reasons for supporting some local shops:
- Excellent service (just pop in and check stuff out)
- Loyalty (goes both ways)
- Small discount (as a reward for being a good customer and to be competitive)

Reasons for not supporting some shops:
- Stupid and arrogant staff
- Poor range
- Poor service
- High prices

I get 26%, please show me your figures;

1. Consumer costs when buying locally, if the retailer does it for free.
Wholesale $100
Add Duty 10% (clothes) $110
Add Imp Proc Chg say $5 $115
Add GST $126

That's 26% on cost that the consumer has paid to the Government.


2. Consumers cost when buying locally on a moderate mark up
Retailers cost inc charges $115
Add $20 retailers mark up $135
Add GST $149

3. Consumers cost when buying from overseas retailer
Wholesale $100
Add $20 retailers mark up $120

Hey I know kites are 5% duty, I just had this example ready. No idea what it is for electronics.

hi Phil

My point is that rather than bleating and complaining about things and blaming others there are people/businesses being innovative and pro active in this country getting on with it and doing well .personally I believe that adversity brings often brings out the best in people .

How would whatever industry you are involved in cope with a 26% handicap? (By the way you don't need to welcome me to seabreeze just check my profile for who I am)
All I want is some leadership, I'd rather one Prime Minister sacrifice themselves for 10,000 small businesses, than the other way around.

OK if anybody want to keep reading then check out the similar thread on the windsurfing forum.