GST threshold for imports to be lowered

link1896

Mr Greenfield
If all state and territory premiers agree, it's looking likely that online purchases from overseas will pay GST on almost everything, with a $20 threshold instead of the current $1000 threshold. No doubt the 5% duty will be slugged too.

So buying a $500 AUD set of cranks:

purchase price $500
freight $25
duty on $500 at 5%= $25
gst at 10% on purchase + freight + duty= $55 ( yes, a tax on a tax!!!!!)

Total price is now $605. There will probably be a processing fee too.

This will help Australian retailers no doubt, probably still puts CRC cheaper then Australian wholesale on Shimano and SRAM?

So freight forwarding companies in the USA who rebox your goods and let you complete the price declaration yourself will boom.
 

pharmaboy

Eats Squid
The word "may" features prominently from the treasurer. No outrage, they'll think they can get away with it, and vice versa....

They should have a test - if said distribution wholesale in Australia is more expensive than retail overseas, then no deal.

Australian retail business have a degre in whining. Clarence st cyclery owner was on telly the other night complaining about overseas GST free sales hurting his business - not exactly a business known for great value offers - move with the times perhaps?
 

Boom King

downloaded a pic of moorey's bruised arse
Implementation will be a big issue. Where is the GST charged? Who collects it and passes it back to the ATO?

If that falls on Customs, nobody will be getting there overseas goods for months.
 

Calvin27

Eats Squid
Implementation will be a big issue. Where is the GST charged? Who collects it and passes it back to the ATO?

If that falls on Customs, nobody will be getting there overseas goods for months.
Only an issue for everyday Joes like you and me. Big Fat Joe with his cigar is laughing all the way to treasury.

I lot of people make the wrong assumption that taxes need to be efficient and effective. This one needs to be neither and only needs to piss consumers off enough to give local purchases a chance. I think treasury give little crap how long your XT brakes stay in customs also. This, unfortunately is the world we live in.
 

c3024446

Likes Bikes and Dirt
If this gets up, I see the big winners being the Aussie based online bike parts businesses, not so much for the LBS.

For CRC and wiggle – this can only be a bad thing. How big does everyone think their market is over here? If they opened their own online store based out of Australia – do they have to go through the Australian distributors (e.g. Monza) or do they get stuff from Shimano / SRAM directly?
 

ozzybmx

taking a shit with my boobs out
You would think that making a decision like this would have to be planned carefully and resourced to deal with the 10's of thousands of packages arriving here each day. Then again with the idiots we have making decisions, they'll not think of how it will work, just the dollar value attached.
 
Implementation will be a big issue. Where is the GST charged? Who collects it and passes it back to the ATO?

If that falls on Customs, nobody will be getting there overseas goods for months.
Gonna be the only way they will be able to collect it coz the business selling the stuff is not conducting business in Australia, thus the tax laws don't apply

it will be just like the duty they charge once over $1,000, you cough up or no goods for you.
 

Boom King

downloaded a pic of moorey's bruised arse
Gonna be the only way they will be able to collect it coz the business selling the stuff is not conducting business in Australia, thus the tax laws don't apply

it will be just like the duty they charge once over $1,000, you cough up or no goods for you.
That's a massive new workload for customs though.
 

ozzybmx

taking a shit with my boobs out
it will be just like the duty they charge once over $1,000, you cough up or no goods for you.
Theres going to be some jam packed PO's and warehouses around Australia holding all these $20 packages, waiting on their $2 tax to be paid. Currently delivered by contractors to our door, will be interesting to see how they plan to notify us that there is a package waiting and wont be delivered until the $2 is paid.
 

c3024446

Likes Bikes and Dirt
Theres going to be some jam packed PO's and warehouses around Australia holding all these $20 packages, waiting on their $2 tax to be paid. Currently delivered by contractors to our door, will be interesting to see how they plan to notify us that there is a package waiting and wont be delivered until the $2 is paid.
The UK has a low threshold for imports, I guess we will just have to put up with a similar system.
 

Ivan

Eats Squid
How will auspost collect the GST ?

Will it be like the UK, where your parcel takes weeks to process and your made to drive a long way to the collection hub and wait in a long line?

This is not about tax collection, this is about repaying the local retail political donors by making OS online purchases way more difficult.
 

ozzybmx

taking a shit with my boobs out
Looks like they are going to identify the retailers shipping to Aus and get them to add the GST to the price, then collect directly from them.
Its just a tax grab... disguised as adding GST to level the playing field. Sure it was only a 10% price difference anyway :crazy:
 
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Jim Junkie

Used to sell drugs, now he just takes them
Looks like they are going to identify the retailers shipping to Aus and get them to add the GST to the price, then collect directly from them.
Its just a tax grab... disguised as adding GST to level the playing field. Sure it was only a 10% price difference anyway :crazy:
Isn't there also talk about states raising the GST to 15% as well? Time to stock up on spares I guess.
 
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