Closing shop - it's all the fault of GST

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RonK
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Re: Closing shop - it's all the fault of GST

Postby RonK » Thu Dec 12, 2013 11:29 am

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Re: Closing shop - it's all the fault of GST

Postby TREKKER_MIKE » Thu Dec 12, 2013 9:13 pm

I like my local bike shop, and i always try to buy local products and keep local jobs.

However in some cases, poor customer service has driven me to online sales. I bought some golf clubs, i asked for help in 4 stores, wouldnt really help me, tell me what the difference was, have a go in the nets was not offered........nothing !!, middle age bloke walks in, they swarm over him. Hand on heart i tried 4 stores with the same "dont waste my time" attitude.

So instead of buying a 500 dollar set of irons, i bought from America the same thing with shipping for under 200 Dollars. I felt horrible doing it, so much that i let the retailers association know about it. I was willing to buy a expensive set for a proper fitting, and easy returns if there is a problem, but they didn't deserve my hard earned money

They cant beat prices as the individual companies determine RRP in different countries, but after sales service, and a friendly smile when you walk in the door goes a long way.

Simple thing a shop could say to get a customer hooked
Golf - how did your last game go?
Cycling - what are you riding at the moment......nice one.........have you thought about one of these?

Engaging with the customer and asking how they are going is a great way to make a friend and a repeat customer.

I went to the bike barn in Parramatta to swap out some glasses that they didnt even supply (via the rep) and they were top class in service and a smile. And Park Bikes are always on the top of the game when it comes to helping

Just my thought on retail shopping
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Re: Closing shop - it's all the fault of GST

Postby DavidS » Sat Dec 14, 2013 6:25 pm

Just looked at that fact check article and it does show how complex this can be.

However, one of the comments really struck home with me. The large retailers, yes that means you Hardly Normal, are the ones who are bleating the loudest about this. But they are the same mob who were importing cheap goods from overseas not too many years ago and putting Australian furniture makers and the like out of business. Pot, meet kettle. With the advent of the internet consumers are directly doing to them what they did to others earlier. They reap what they sow.

I have no problem with lowering the threshold but the hypocrisy does piss me off. The threshold should only be lowered to the point where the revenue raised is more than the cost of collection. What this debate should lead to is some consideration of the retail and distributor model here so we get more competitive pricing. Attacking parallel imports is not attacking the real problems of gouging. When it costs double to purchase software off the 'net just because you reside in Australia (no delivery costs, no distributor etc) then there is a problem, and it has nothing to do with taxation.

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Ross
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Re: Closing shop - it's all the fault of GST

Postby Ross » Thu Feb 06, 2014 10:58 am

Online shoppers could face 37% GST slug


http://www.canberratimes.com.au/busines ... 321nw.html" onclick="window.open(this.href);return false;

Consumers could be slugged with a 37 per cent “internet tax” if the $1000 GST threshold on imported goods was lowered, says consumer group Choice.

The average overseas internet purchase of $38 would end up costing $56 if a UK-style tax processing fee is added on top of the 10 per cent GST, according to modelling by Choice.

This means most shoppers would end up paying more processing fee than GST because about three-quarters of all overseas internet purchases are worth less than $100.

Choice chief executive Alan Kirkland said it would act as a strong disincentive to shop at overseas online stores. The group estimates it could cost consumers $823 million if the GST-free threshold was reduced from its current $1000.

The local retail sector has long lobbied the federal government to reduce the threshold.

State treasurers, eyeing extra GST money, and federal Treasurer Joe Hockey will discuss proposals to lower the threshold at a meeting in March.

The sticking point has been how to collect the extra GST in a way that doesn’t cost more than it generates.

Choice argues in its pre-budget submission, where it details the modelling, that the federal government should not lower the threshold until it can prove the move would raise net revenue.

Treasury estimates that cutting the threshold for GST to zero would cost 66 per cent more than anything collected because authorities would have to check a lot of very low-value items.

Choice has modelled the cost to consumers of implementing part of the UK system where the tax is charged on imports worth more than £15 ($27.56) and the processing fee - Royal Mail charges users £8 ($14.70) - is passed onto consumers.

The retail lobby hit back at Choice, accusing the group of not understanding how the complete UK system works.

“I would reject (their conclusions) - it is premature to suggest that,” Australian National Retailers Association CEO Margy Osmond said.

“The Choice release illustrates how little they understand about how the UK system works.

“The vast bulk of packages in the UK have the tax collected by the online retailer.”

The association in its own pre-budget submission, argues for this type of system, where overseas retailers are made to collect GST for the government.

A similar regime was one recommendation in a federal Treasury taskforce on “low-value parcel processing”.

“This is a discussion about closing a loophole in the tax law that is a hangover from when nobody shopped online,” Ms Osmond said.

But Choice sees this proposal as another way to obstruct shoppers going online.

“There is a risk it involves excessive compliance costs in a way that prevents overseas businesses selling into Australia, thereby preventing consumers from enjoying the benefits that competition provides,” Mr Kirkland said.

“Any requirements we want to impose on overseas businesses end up acting like a tariff.

“Retailers are trying to not only impose additional costs but undermine the reason people shop online.

“Our research shows people like online shopping because the goods are delivered to the door. If that is undermined, then that’s a great way of pushing people into local stores.”

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Online shopping cost data

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Re: Closing shop - it's all the fault of GST

Postby AUbicycles » Sun Feb 09, 2014 2:35 pm

“I would reject (their conclusions) - it is premature to suggest that,” Australian National Retailers Association CEO Margy Osmond said.

“The Choice release illustrates how little they understand about how the UK system works.

“The vast bulk of packages in the UK have the tax collected by the online retailer.”
Thanks for sharing but this bit is a joke.

Does this retailer association seriously believe that retailers such as Wiggle or c r c would happily support this move to reduce the number of purchases by Australian's and also collect tax for the Australian Government.

Maybe they meant something else but it hasn't been clearly explained and as I understand it, even if the Australian goverment could force every single overseas retailer to collect tax, what would that cost to administrate?


To play their game, if there is an internet sales tax, wouldn't local business have to pay that as well. That would raise the cost of 90% of goods in shops and would really help to stop consumers spending, the government would like that.
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il padrone
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Re: Closing shop - it's all the fault of GST

Postby il padrone » Fri Apr 10, 2015 11:05 am

The Federal Government seems set to jump down the path of trying to apply GST on overseas purchases... at source?
The treasurers have also agreed to push ahead with plans to apply the GST to goods purchased online from overseas which are valued at less than $1000.

Gerry Harvey must be rubbing his hands with glee. Sadly (for him) this still will not persuade me to buy his crap.
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Re: Closing shop - it's all the fault of GST

Postby ldrcycles » Fri Apr 10, 2015 11:35 am

I couldn't care less either way, even if GST is applied to everything it will still be vastly cheaper to buy online in most instances.
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Re: Closing shop - it's all the fault of GST

Postby Calvin27 » Fri Apr 10, 2015 12:05 pm

The government has (either deliberately or not) done the right thing and just sat and done nothing. When the AUD normalizes, a lot of this will just sort itself out.

The worse outcome would be for them to implement some sort of system based on a online sales volume then to have to maintain the said system while online sales, and hence revenue, drops.
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Re: Closing shop - it's all the fault of GST

Postby Baalzamon » Fri Apr 10, 2015 10:06 pm

OOPs I just purchased a VPN montly subscription, now getting cheaper stuff off Amazon, steam, netflix etc etc and tax evasion!!!

Who wins there, consumer and companies that supply VPN.
There is no way the government can regulate the internet when consumers do that, they try and ban VPN's and companies would be up in arms over lack of security logging for remote users.
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Re: Closing shop - it's all the fault of GST

Postby AUbicycles » Sun Apr 12, 2015 8:13 pm

Apply tax at the source? The European Union recently went down this path and it was pretty messy, but the countries have agreements so from a taxation perspective can regulate and enforce.

Australia does not have the same type of relationship at with the EU (shared currency is a big plus, even though each country has a different tax rate.... and multiple tax rates depending on the type od foods).

In the US tax is handled on a state basis and is a mess, you are expected to declare online puchases in your tax return in some states. Collection and jurisdiction hasn't been resolved.

While is is technically possible to collect taxes and duty, it is an admin burden and the companies and countries have to play along.


Gerry Harvey got into trouble by the public for his possible (then set up an offshore online store... Huh?) and now chosed to stay out of the public eye for fear of a backlash however is currently actively pursuing and lobbying the Government to change the Low Value Threshhold.


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Re: Closing shop - it's all the fault of GST

Postby Top_Bhoy » Sun Apr 12, 2015 11:24 pm

I don't see how they can force the likes of wiggle and their ilk who are outside of australian company and financial regulation, to collect australian taxes. Possibly surcharge Australian credit cards and PayPal on international transactions could be undertaken to make up a defecit????

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