jimboss wrote:stanevelyn wrote:I don't drink.
And I would rather buy all my bike parts from overseas rather than here. After all it is my money, and I won't have business or anybody else tell me how and where to spend it. I know that businesses pass all their expenses on to the customer, including GST. I'm not denying anybody an income or profit, just that when mark ups on cycling goods are very high locally, I shop elsewhere. And if O/S is cheaper then there I will shop, GST or not.
You completely missed the point with GST - of course a shop will pass GST on. If not they are making less money. The point of GST is that it will be passed on.
While business can claim GST on input costs, the GST on sale price goes to the government. Sure it's near on zero sum for the business in terms of tax flow - it will either increase price or decrease profit.
As much as i hate to say it, retailers have a legitimate gripe that parcels under $1000 avoid tax. HOWEVER, many would be deluded to think that GST on imports would make them instantly competitive. Although I think the 'pain in the ass' factor may influence some people away from O/S stores.
End of the day, Australia is a much more expensive place to do business. Wages, property, etc are all much steeper than o/s. Let alone size of our market.
I understand and sympathise with your 'I shop local when it makes sense' and 'tacking GST onto imports wouldn't change my behaviour' sentiments but your first post really missed the mark.redned wrote:What I find odd is that during the tech-boom in 2000, which shortly became the tech-wrech, the internet-as-market model was being promoted as the new age answer to everyone's problems. Business and consumer were going to benefit by everything being on-line. Now that we are there, retailers are complaining that their old-fashioned business model doesn't work. Their problems are not caused by no-GST on low value items.
Coming into an election year, I wouldn't put it past the government extending GST to low value items, fudging the cost-benefit.
I would be super surprised if we saw the Gillard government introduce a new tax. The pressure from retailers would not outweigh the negative reaction from the wider electorate, or simply the 'big fat tax' fuel the liberals would gain.
Your'e right. I certainly hope that the Government makes wise decisions on this matter.