$1000 Import Threshold 2017 Idiotion

[fat and old]

A more effective approach would be the government reducing bureaucracy - the amount of superfluous administration and time consuming accounting to operate a small business is mind numbing.

I operate a small business (20 or less employees) and it's not actually. Maybe my industry is easy but my wife and I have no issues; this with 0 business experience prior.

Sorry about OT.... one of my peeves.

[uad782]

What would happen if Wiggle etc refused to collect the GST? Can the ATO reach that far?

[Ivanerrol]

Has anyone seen any estimates of how many e-commerce sites are expected to fall into the '$75k annual turnover in Australia' threshold? I'm assuming that someone somewhere did some modelling to come up with the $75K figure as the threshold amount. I searched but couldn't come up with anything...

It's the standard $75,000 yearly figure.

If you operate a business or a small operator with a annual turnover less than $75,000 then you do not need to register for GST.
Your invoices do not add the GST 10% amount on.
The entity receiving the goods or services cannot claim back the GST on their 3 monthly GST statement as GST was not paid.

There are many small business's or one person companies who apply for an ABN without GST compliance because they fall under the $75.000 rule. Pensioners doing small works come into this category.

One of the issues for the government and ebay etc is there are many local sellers who stick to the blow annual $75,000 turnover figure to avoid the GST.

[Ross]

So how would the AU$75K currency conversion figure be calculated? Currency value fluctuates every day, even hour to hour. Would they say base turnover figures on last financial year's turnover (nett or gross?) and at what point in time would they do the currency conversion to see if it is under or over the AU$75K threshold?

A business might only turnover $70K last year so under the threshold but have a bumper year the following year and make an extra $10K...or the opposite and currently turnover $75K but then have bad year (because a heap of Aussies can no longer be bothered buying from them anymore due to GST...) and only turnover $70K the next year...but have charged what few remaining Aussie customers they have left the 10% GST.

So does the business then have to track down all these customers at the end of the financial year (where a number of them have moved etc) and refund them the GST (that it has already given to the Australian govt)?

Seems to be a lot of unanswered questions about this, especially considering it is just over 2 months away from implementation.

[AUbicycles]

I operate a small business (20 or less employees) and it's not actually. Maybe my industry is easy but my wife and I have no issues;

Could be industry specific though my experience is spending more time on Tax and accounting than I feel is necessary so is a disproportionate drag on time and associated costs.

[Alex Simmons/RST]

Honestly, this will co ck up harder that Labor’s Pink Batts scheme. (source Google) As at 2015 there are 12-24 million eCommerce stores selling products online ... and Turnbull Inc wants each that generate in excess of 75k AUD annual turnover to collect tax for Australia! Lol, where do I start!

Has anyone seen any estimates of how many e-commerce sites are expected to fall into the '$75k annual turnover in Australia' threshold? I'm assuming that someone somewhere did some modelling to come up with the $75K figure as the threshold amount. I searched but couldn't come up with anything...

$75k is the income threshold figure for any business (including e.g. a sole trader) which needs to register and begin to collect GST. It's not something made up for this exercise. It's the tax law applicable to all businesses.
https://www.business.gov.au/info/plan-a ... to-pay-gst

[Shred11]

What about gifts? I sometimes receive birthday presents from overseas. Surely the sender should not pay GST on a gift.

So then, what's to stop an unscrupulous overseas vendor from simply declaring every parcel a gift to avoid paying the GST? This must already go on, because a number of overseas purchases arrive here with a tickbox on the shipping label for "Gift" - and it is ticked - even though it is not a gift.

Another is "trade sample". And what about a replacement part for a bike sent under warranty?

So many problems with this scheme to appease Gerry Harvey and his mates.

[ball bearing]

My USA made frame was assessed for 5% duty even though the box had a FTA Full Compliance certificate in a see through envelope on the box. I asked Border.gov why the frame was subject to the 5% and I received a reply that they are not allowed to give out information about individual items! They linked me to some very confusing docs without any explanation. Not sure it's worth the hassle of dealing with the faceless megalith bureaucracy to get my money back.

[eeksll]

What about gifts? I sometimes receive birthday presents from overseas. Surely the sender should not pay GST on a gift.

So then, what's to stop an unscrupulous overseas vendor from simply declaring every parcel a gift to avoid paying the GST? This must already go on, because a number of overseas purchases arrive here with a tickbox on the shipping label for "Gift" - and it is ticked - even though it is not a gift.

Another is "trade sample". And what about a replacement part for a bike sent under warranty?

So many problems with this scheme to appease Gerry Harvey and his mates.

not sure whats so important about a "gift". If I buy a gift for someone in Australia I can't claim back GST.

[biker jk]

My USA made frame was assessed for 5% duty even though the box had a FTA Full Compliance certificate in a see through envelope on the box. I asked Border.gov why the frame was subject to the 5% and I received a reply that they are not allowed to give out information about individual items! They linked me to some very confusing docs without any explanation. Not sure it's worth the hassle of dealing with the faceless megalith bureaucracy to get my money back.

The customs form should have included the code for exemption from the 5% duty due to a FTA. Who filled out the custom form?

[Warin]

What would happen if Wiggle etc refused to collect the GST? Can the ATO reach that far?

Well goods could be sized on entry. Recipient could then be approached to pay GST + seizure charges, if unpaid then goods auctioned off.

'Gifts' could be dealt with the same way! Though how they will tell what is a real gift and what is not ... other than the sender?

--------------------------
Gerry Harvey + co ... may get the message eventually .. even with a 30% rise in costs things will still be cheaper or more readily available to buy from os than through oz sources.

[ball bearing]

My USA made frame was assessed for 5% duty even though the box had a FTA Full Compliance certificate in a see through envelope on the box. I asked Border.gov why the frame was subject to the 5% and I received a reply that they are not allowed to give out information about individual items! They linked me to some very confusing docs without any explanation. Not sure it's worth the hassle of dealing with the faceless megalith bureaucracy to get my money back.

The customs form should have included the code for exemption from the 5% duty due to a FTA. Who filled out the custom form?

Yep, the relevant clause is cited and the form was very carefully filled out by Lynskey. I find it very odd that duty was levied despite having the proper paperwork plainly attached to the carton.

[Abby]

What about gifts? I sometimes receive birthday presents from overseas. Surely the sender should not pay GST on a gift.

So then, what's to stop an unscrupulous overseas vendor from simply declaring every parcel a gift to avoid paying the GST? This must already go on, because a number of overseas purchases arrive here with a tickbox on the shipping label for "Gift" - and it is ticked - even though it is not a gift.

Another is "trade sample". And what about a replacement part for a bike sent under warranty?

So many problems with this scheme to appease Gerry Harvey and his mates.

Because under the proposed model, the GST will be collected & paid at the point of sale, not when it arrives. So if Auntie Nora sends you a box if inner tubes as a birthday present then that's fine. But if you buy a box of inner tubes from Wiggle or Ebay or Amazon, then you will have already paid the GST at the time of purchase (so it doesn't matter what they label the parcel as)...

[Ross]

http://www.bicycleretailer.com/north-am ... QPCrNyLmUk

WASHINGTON (BRAIN) — Retail trade groups are applauding the re-introduction of federal legislation that would allow states to collect taxes on goods and services purchased by their residents online, even if the seller was out of state.

[AUbicycles]

Trade samples are tricky. There is s process for items that are then exported again, in short paying duties and then getting it back.

For a gift, they are not automatically excluded and sending a new expensive gift will capture the interest.... but if you want to try it... send me something expensive and I will tell you what happens.

[2wheels_mond]

A parliamentary committee has recommended the start date be pushed back to 1 July 2018:

http://www.aph.gov.au/Parliamentary_Bus ... ods/Report

[Top_Bhoy]

A parliamentary committee has recommended the start date be pushed back to 1 July 2018:

http://www.aph.gov.au/Parliamentary_Bus ... ods/Report

What happens if a company doesn't want to participate, have the political idiots in Canberra announced how they are going to 'force' overseas companies to collect this tax?

[Mulger bill]

A parliamentary committee has recommended the start date be pushed back to 1 July 2018:

http://www.aph.gov.au/Parliamentary_Bus ... ods/Report

What happens if a company doesn't want to participate, have the political idiots in Canberra announced how they are going to 'force' overseas companies to collect this tax?

At a guess, anything from a non compliant seller will probably be subject to the full customs rigmarole

[uad782]

Thanks for the link. It is interesting to note Wiggle made a submission. I wonder what they said.

[2wheels_mond]

Thanks for the link. It is interesting to note Wiggle made a submission. I wonder what they said.

It's listed here:

http://www.aph.gov.au/Parliamentary_Bus ... ubmissions

Number 15.

[1Rowdy1]

I will still shop overseas, with or without GST, better range overseas, and I rate most of the bike shops I have visited right along side used car salesmen.

[RonK]

What it boils fown to, is that eBay, Amazon, Etsy, Alibaba etc have told the senate committee that they are marketing platforms, not retailers, and they will not collect GST for the government. And since most merchants using the platform would have a turnover lower than the threshold, they would not be obliged to collect it either. So the major online marketplaces would ultimately yield very little in GST collections.

And they have gone further and said that if the goverment attempts to force them to collect, they will deny access to Australian customers. This kind of outcome could likely lead to a change of government.

So the implementation is to be delayed for a year and the government goes back to square one.

[Calvin27]

My suggestion however is for consumers to rebel order numerous super low priced items from overseas. 50 cent items and then if the government wants their 0.05 cent tax and $40 customs fee, let them keep it. When customs warehouses start filling with useless rubbish coupled with processing costs that gave not relation to the item value, then the government will be forced to rethink.

Two words:

Fidget. Spinner.

[Patt0]

What happens if a company doesn't want to participate, have the political idiots in Canberra announced how they are going to 'force' overseas companies to collect this tax?

Its all fixed. The gov are just gonna get the cash via the big four banks. This will just slide into oblivion like all their other stupid ideas.

[jacks1071]

Thanks for the link. It is interesting to note Wiggle made a submission. I wonder what they said.

It's listed here:

http://www.aph.gov.au/Parliamentary_Bus ... ubmissions

Number 15.

Wiggle worried about small competitors having an unfair advantage?