[cruvon]

I guess this is going a bit too far, Gerry Harvey, be competitive..even if a GST was introduced on purchases <1000AUD I don't think that would stop anyone from buying overseas because things are still inflated to cost 100+% more at local stores and dealerships...so the only real answer is for local businesses to be reasonably priced v/s their online peers to effectively fend off global competition and if the goverment has to step in, then maybe they should just ease the tax and overheads burden on local businesses to help them be more competitive so lobby for that. Plus, if ones a business, GST can be claimed on overseas purchases anyway so why strangle the majority salaried population for small purchases they might want to make this Christmas?

http://www.smh.com.au/business/short...123-185op.html

Shorten considers taxing web shoppers

Jacob Saulwick
November 24, 2010

GST may hit web shoppers
The government is considering charging GST on items bought from overseas websites, amid claims Australian retailers are struggling.

THE government is considering applying GST on more imported goods in an attempt to help retailers struggling to compete against online shopping.

Gerry Harvey, the chairman of Harvey Norman, yesterday joined a chorus of retailers asking for government help in the face of a high dollar and the drift to online shopping. He predicted a bleak Christmas for many stores and said GST revenue lost to internet shopping would knock a $1 billion hole in tax collections.

''The government can't just ignore it,'' Mr Harvey said. ''They can't just say it is too hard, it is too much money … it is sending retailers broke.''

Imported goods worth less than $1000 are exempt from the GST. The government asked the independent Board of Taxation to examine the threshold early this year, but the board said reducing the threshold was not ''administratively feasible''.

However the Assistant Treasurer, Bill Shorten, told the Herald that the government would still consider doing something.

The ''government understands the concerns of retailers and other stakeholders about this issue, particularly in light of the high Australian dollar,'' Mr Shorten said. ''It deserves serious examination and, while the threshold is good for consumers, we need to balance that against the interests of retailers and the administrative burden on businesses.''

Speaking after his company's annual meeting, Mr Harvey admitted his estimate of $1 billion in lost GST revenue was plucked from the air. But he said the issue was not going away. ''No one's making a big noise about it, but they will be,'' he said.

Internet shopping is estimated to amount to about $12 billion a year, about 4 per cent of total retail sales.

The executive director of the Australian Retailers Association, Russell Zimmerman, said a survey of his members this week about the threshold received the largest response of any research the organisation had done.

''If we are not careful, then this year it might be $12 billion, next year it might be double that, the next year it might be double that,'' Mr Zimmerman said.

A spokesman for the consumer group Choice, Christopher Zinn, was sceptical about whether the government should step in, particularly as the dollar could easily decline in value.

[bcoz]

Michael Pascoe of the SMH sums it up best...

Poor Gerry Harvey - tell him he's dreaming
http://www.smh.com.au/business/poor-...124-186nm.html

[cruvon]

Originally Posted by bcoz

Michael Pascoe of the SMH sums it up best...

Poor Gerry Harvey - tell him he's dreaming
http://www.smh.com.au/business/poor-...124-186nm.html

lol, good one, the media were fast to catch on that story..is funny how the retailers spun it out to look like that if the GST is not introduced soon the governments coffers will go broke when it might just be the other way round with them looking at their own interests.

[V1_R]

Originally Posted by bcoz

Michael Pascoe of the SMH sums it up best...

Poor Gerry Harvey - tell him he's dreaming
http://www.smh.com.au/business/poor-...124-186nm.html

Fantastic write-up!!! I particularly like the last line "They weren't concerned about the cost to taxpayers of the cash splash"

F&CK Gerry Harvey... I'll refrain from shopping at Harvey Norman if I can now because of him. He's happy to wipe smaller shops out of business, but now that we're going elsewhere he is whinging...

on a side note, I spent $1200 buying a new camera and lens from online stores today.... something that I have been quoted over $1900 from local shops in Perth!!

[Durin's Bane]

It's not the GST that makes Oz expensive, it's the ridiculous mark ups.

I can purchase high end Nike cross trainers in the US for $80... same pair here costs $300.

I purchased Levis in the US earlier this year for $50, same pair in Sydney was $130.

Tag Heuer watch that I can purchase in the USA for $2500 is $5000 here.

And just take a look at car prices!!


My wife and I now purchase almost all of our clothes, shoes, smaller electronic items etc in the USA or Asia. Even when the dollar is at US75c it is cheaper to shop in the USA than Australia.

[cruvon]

Originally Posted by Durin's Bane

It's not the GST that makes Oz expensive, it's the ridiculous mark ups.

I can purchase high end Nike cross trainers in the US for $80... same pair here costs $300.

I purchased Levis in the US earlier this year for $50, same pair in Sydney was $130.

Tag Heuer watch that I can purchase in the USA for $2500 is $5000 here.

And just take a look at car prices!!


My wife and I now purchase almost all of our clothes, shoes, smaller electronic items etc in the USA or Asia. Even when the dollar is at US75c it is cheaper to shop in the USA than Australia.

very much true....makes those DFO outlets here stand out like a sore thumb. I wish we could also import a new US car in with no duty as a completely knocked down kit like BMW does in some countries and reassemble it here..then we would all be driving an M3 for or less than the starting price for a BMW 3 series here..but then we would have to change the side of the road we drive on too

btw have noticed local M3"s have already started falling drastically in value
http://www.m3post.com/forums/showthread.php?t=458515