Greens back retailers' online GST fight

Treasury have already said that the cost of collecting the GST would be higher than the revenue. Given that most of my overseas purchases are in the order of under $20 (books or digital-only such as books) I certainly agree. Already people circumvent GST over $1000 by marking items as 'gifts' when they certainly are not. I think it's unfortunate to lose out on this revenue, but I cannot see how we could make this work unless they're going to open every package coming into the country.

Xaria January 4th, 2011

And thus just lost my vote in the next election.

The Government is FOR THE PEOPLE not for large corporations that make millions every year, but hey follow the money i guess they pay more tax so their view counts.

kirbykia January 5th, 2011

I agree kirbykia, they have lost my vote too.

How about our retailers drop the price of items that we purchase cheaper overseas?
The amount of times I've been told it's more expensive here because they have to carry over the difference in price between the USA and AUS$.
In the current climate we have been nearly on par with the US$ for a while now shouldn't our prices be dropping to match?
How about you stop overcharging Australian's for everything and we will start purchasing products locally again.

dmnet1 January 5th, 2011

The Greens seem to hate all businesses, big and small. Perhaps they think we should only cosume lentils and nettle soup made from stuff from our backyards.

It's true that the local retailers have long blamed the dollar for their high prices. Now that the A$ is higher than the US$, they had to find another excuse, and guess what - the GST!

The dollar should have very little to do with the GST-on-imports argument, since the retailers and the private importers would pay about the same exchange rate.

gnome January 6th, 2011

Mr. Brown, who was it that imported cheap goods from overseas that sent our manufacturing industry and local shops to the wall and once local manufacturers and small retailers were gone, then raised their prices to maximise profits

Pretty similar to what supermarkets are now doing to our farmers - forcing down farm gate prices with the threat of imported fruit and vegies.
Mr. Brown you would be doing more for Australia if you fought to maintain our Agriculture Industry in the hands of Australian farmers than worring about a gang of retailers who say its fair competition to wipe out our Australian manufacturing industry and any local stoes that get in the way of their profits.

Jerry, you make me sick claiming its un- Australian to bypass you and your kind to get a fair priice on a product. I suspect the buying and selling policies of your gang of major retailers have put more Australians out of work than any online overseas purchase will.

visions1 January 7th, 2011

I think less of Bob Brown for saying this. It's pandering to retail interests without understanding the issue in depth.

The cost to the government of charging GST on online purchases under $1,000 is massive. The ATO ruled it out due to the compliance issues. It would cost more to collect than it is worth.

Aceyducey January 8th, 2011

GST does not explain the massive differences in price (100%) between Australia and the rest of the world. Examples from the purchases I made on my last trip:
- Panasonic wet/dry shaver. Target USA $149 (not sale price). Australian retailer $350.
- Panasonic electronic viewfinder for LX5 camera. B&H USA $125 (not sale price). Australian retailer $319 (WHAT?!?!!)

So, in the interests of a "free market" that can iron out the price gouging apparent in some part of the supply chain in getting things to the australian consumer, the government just needs to leave the current policy in place. Or even make it easier to import from overseas!

Somewhere along the line, someone is making a massive profit from Australian consumers. Hiding it behind increased government protection will just perpetuate it.

indulis January 10th, 2011