Possible lowering of GST threshold on parcels

[CBratron]

You know how you would ship your pile of loot before the value of it reached AUD$1000? That could change to as low as $20

http://www.smh.com.au/federal-politics/political-news/gst-on-lowvalue-imported-parcels-moving-closer-20150721-gihfgy.html

[liegeprime]

say what now?
:eek:

[Sinnertwin]

I'm not concerned the slightest. We have an over abundance of regularly stocked new lines at Australian Retail.

[DELTAprime]

So how would you pay it? If Australia Post collects it I'll be pissed because my local post office refuses to do parcel pickups. If they just do it the American way of report it on your tax return then I won't be at all worried. ;)

[griffin]

I would imagine the easy/lazy way would be to have people keep a record of their foreign online purchases and voluntarily declare them on their tax-return, with the warning of stiff penalties if they are randomly audited by going through your bank statements (including Paypal) to see if you made any overseas purchases.

[Deonasis]

I'm not concerned the slightest. We have an over abundance of regularly stocked new lines at Australian Retail.

Ahahahahaha!

[Sharky]

this should only apply if the item is stocked on an Australian shelf.. I understand what they are trying to do by supporting retail and the high prices they think they can charge but if your importing something not even stocked in this country to claim a tax on that is messed up.

soon the government will be taking 100% of our wages and they will give everyone a house and a car and food vouchers

[Trent]

this should only apply if the item is stocked on an Australian shelf.. I understand what they are trying to do by supporting retail and the high prices they think they can charge but if your importing something not even stocked in this country to claim a tax on that is messed up.

soon the government will be taking 100% of our wages and they will give everyone a house and a car and food vouchers

Supporting retail is what you are being sold. There is revenue to be had.

[frozensage]

this should only apply if the item is stocked on an Australian shelf.. I understand what they are trying to do by supporting retail and the high prices they think they can charge but if your importing something not even stocked in this country to claim a tax on that is messed up.

soon the government will be taking 100% of our wages and they will give everyone a house and a car and food vouchers



"Supporting" retailer by slapping on a tax which means all the money just goes into the politician's coffa. It's never for the better of the people.

[BigTransformerTrev]

Oh man! I do 95% of my shopping from overseas online stores! I call shenaniigans on that! :mad::mad::mad::mad::mad:

[liegeprime]

Oh man! I do 95% of my shopping from overseas online stores! I call shenaniigans on that! :mad::mad::mad::mad::mad:

++++++++1 to that!!! total B^@%$&%$#!!!!:mad::mad:

[UltraMarginal]

The idea of the tax, apart from more money for the government is to make purchasing locally more attractive than purchasing internationally, which in turn improves local economy.

the down side is like many of us here, most of the stuff I buy overseas because I can't get it here. or it's such a niche market that I import myself because it's much cheaper than buying through a local importer (baseball gear).
Neither of these things is going to change with a 5 - 10 % increase.

[Burn]

Any parcels entering Australia will now have to have the value declared on the packing slip, at which point they'll charge you 10% of the value and invoice you accordingly.

Relying on you to declare it via your tax return or other methods simply will not work as people just won't declare.

What our politicians need to do is rather than looking at raising revenue, they should also be looking at ways to cut excess costs. *cough*travelexpenses*cough*lifetimepensions*cough *

[TAAUBlaster]

Didn't they do their own "report" on this a while ago that showed it would end up costing more to collect, than the amount they collected from the tax?

I can just see them slapping a "collection fee" on top of the tax too. If retailers here weren't so greedy, a lot more people would likely be buying locally. And like others have said, there is a lot of stuff that just isn't available here.

Not to mention how much the tax will add to US Ebay purchases :(

[SMHFConvoy]

Lovely, just lovely.

[Hursticon]

Didn't they do their own "report" on this a while ago that showed it would end up costing more to collect, than the amount they collected from the tax?

I can just see them slapping a "collection fee" on top of the tax too. If retailers here weren't so greedy, a lot more people would likely be buying locally. And like others have said, there is a lot of stuff that just isn't available here.

Not to mention how much the tax will add to US Ebay purchases :(

QFT!

Not forgetting that we already pay an "Australia Tax" on anything made outside of and bought within Australia (Which is everything at this point), but with the $AU actively being pushed further & further down in value...

I have stop there otherwise I'm going to get into a political rant and violate the board's rules.

Suffice it to say, a majority apparently voted for this.

[DarkHyren]

This is incredibly unfair! I really don't see how we can be called "the lucky country" anymore when everything is double the price of other countries and we're going to be charged even more.
Might be worthwhile using a shipping forwarder for everything from now on and setting the value at $19.95 :mad:

[5FDP]

This is a cash grab pure and simple ;) People were drawn to online purchasing because of cheaper prices (and better customer service) and the government want a slice of that pie. Just wait until they figure out how to tax the oxygen we breathe.

[griffin]

I have stop there otherwise I'm going to get into a political rant and violate the board's rules.

You can talk about politics, because it affects us all and impacts on our daily lives... as long as it is rational (identify the problem you have and give reasonable alternatives that the politicians are ignoring for self-serving reasons)... and if we don't talk about it, we the "common people" won't fully understand the process and specifics enough to improve things or get enough people support it (without ending up with a mob mentality of misguided opinions).
The rules just recommend not talking about political parties, or any other organisation that people grow up with or long-term loyalty to, as it can lead to dismissing or excusing poor decisions that are proven issues against that organisation... and can prompt others to target those people of a particular organisation for fun or sport.
Keeping it rational has a better chance of drawing in people from those organisations than making fun of them.

[Defcon]

This is pretty sad news, but with the declining dollar it has become much less attractive to purchase overseas orders anyway. Not saying lowering the threshold to $20 is right. I have been doing most of my shopping at retail, because it really works out cheaper or about the same for the stuff I want anyway. If and when a lower threshold comes into affect, I would actually be more worried about local retail prices going up, thus negating the point of the lower threshold to make an even playing field. The result is higher prices for everyone, for the sake of increasing government revenue :rolleyes:
Small businesses will be paying tax on importing even if they have small parcels, when they sell the item add gst as well, prices will go up :confused: and still be uncompetitive. This lowering of the threshold will net all the ones avoiding tax, to bad for individuals who just want to be hobby sellers.
Since Im not a small business Im just having an opinion, but dont see the benefits if there are any :cool:

[MayzaPrime]

Is this tax also going to happen on 2nd hand items? I have bought alot of Transformers from Transformerland and eBay, but I will be damned if I am going to pay GST on a 2nd hand item :mad:

[DarkHyren]

The way I understand it is that anything not marked as a gift (and even then I'm unsure) counts as imported merchandise and thus is subject to import taxes.
I'm with Mayza, no way am I paying tax on second hand goods or for that matter items that aren't or haven't been sold in this country.

[Demonac]

Am I too cynical to see this as a way to take a little more from those who aren't rich (let's face it, it isn't the people at the top of the pyramid that would be wasting their time importing stuff that is <$1000) to balance out tax cuts that mostly benefit those at the upper end?

[BigTransformerTrev]

Am I too cynical to see this as a way to take a little more from those who aren't rich (let's face it, it isn't the people at the top of the pyramid that would be wasting their time importing stuff that is <$1000) to balance out tax cuts that mostly benefit those at the upper end?

That's a damn good point! Instead of lowering it so the tax is effecting poor sods buying a $21 dollar item, how about they raise revenue by collecting a higher GST rate on people buying $20000+ items. Maybe the people importing sports cars and artworks could chip in a bit more instead of the average joe trying to save a couple of bucks by buying online.

I have no choice but to buy online as there aren't a lot of retail shops in the bush so this is going to hit people in rural areas extra hard :mad: - heck a lot of Aussie retailers don't even deliver to the bush or if they do they charge more in postage than it costs to get the item from America or Japan! Bet the pollies in the capitals didn't think of us since if you don't live in a big city you don't matter :(

[Demonac]

Let me grab my soapbox...
GST is an unfair tax that affects lower incomes more than higher incomes, as those in the lower brackets spend a greater percentage of their income than those that have higher incomes.

[Magnus]

Public works and services have to be funded somehow...

Anyway, I'm not happy about the prospect of such a low threshold either. I would've thought something like $500 would be more reasonable.

As I recall, the Productivity Commission did produce a report in 2012 concluding that it would be too expensive - costing more than revenue raised - to implement. I wonder what's changed?


That's a damn good point! Instead of lowering it so the tax is effecting poor sods buying a $21 dollar item, how about they raise revenue by collecting a higher GST rate on people buying $20000+ items. Maybe the people importing sports cars and artworks could chip in a bit more instead of the average joe trying to save a couple of bucks by buying online.


I'm pretty sure those things are already subject to import duties. Cars above a certain value are also subject to Luxury Car Tax.

[BigTransformerTrev]

I'm pretty sure those things are already subject to import duties. Cars above a certain value are also subject to Luxury Car Tax.

True but there are ways around it. Pop in a couple of kiddie car seats and it's a 'family wagon', fuzzy dice with big headlamps and a raccoon tail ariel adornment and it's a 'bush basher', purple leather seats and a white fur steering wheel cover and it's a 'pimpmobile'. Heck - chuck on a TF symbol and it's an 'Autobot'! Only 1 in every 7000 expensive cars imported gets actually classified as a 'luxury car'

[griffin]

GST is an unfair tax that affects lower incomes more than higher incomes, as those in the lower brackets spend a greater percentage of their income than those that have higher incomes.

It was easier for rich people to get their accountants to help them avoid regular taxes which included sales tax, which was the main argument or benefit of GST... so that at least the rich have to pay some tax (or pay 10% more tax than what they were getting away with before).
Unfortunately, the GST was meant to replace various state taxes, but the states got greedy and many state taxes were not abolished.
In the end, "vote-buying" spending of governments from both major parties, increased to the point that the GST and remaining state taxes & revenue are no longer enough to cover state budgets.

And of course, like the Federal Government, if you can't afford your spending, raise taxes instead cutting back on the spending. :rolleyes:

[griffin]

True but there are ways around it. Pop in a couple of kiddie car seats and it's a 'family wagon', fuzzy dice with big headlamps and a raccoon tail ariel adornment and it's a 'bush basher', purple leather seats and a white fur steering wheel cover and it's a 'pimpmobile'. Heck - chuck on a TF symbol and it's an 'Autobot'! Only 1 in every 7000 expensive cars imported gets actually classified as a 'luxury car'

That's what is so annoying about the loopholes that politicians put into things, to benefit themselves and their rich benefactors/donors.
It shouldn't matter the purpose... if you can afford a $50,000 sedan with all the trimmings and luxury items, you can afford paying the extra luxury tax.
The people who can most afford these taxes are the ones who know how to avoid them, with their high-priced accountants who are then tax-deductible (so we pay tax for them to find ways to not pay tax).

Ah, the lucky country... for the rich.

[Magnus]

True but there are ways around it. Pop in a couple of kiddie car seats and it's a 'family wagon', fuzzy dice with big headlamps and a raccoon tail ariel adornment and it's a 'bush basher', purple leather seats and a white fur steering wheel cover and it's a 'pimpmobile'. Heck - chuck on a TF symbol and it's an 'Autobot'! Only 1 in every 7000 expensive cars imported gets actually classified as a 'luxury car'

I'm pretty sure the application of LCT is related to the value of the vehicle, because there's a threshold: https://www.ato.gov.au/Business/Luxury-car-tax/ Intended usage of the car once you have it is another matter.

[BigTransformerTrev]

I'm pretty sure the application of LCT is related to the value of the vehicle, because there's a threshold: https://www.ato.gov.au/Business/Luxury-car-tax/ Intended usage of the car once you have it is another matter.

As someone who happens to be lucky enough to drive a '1998 Triton Utility' you will appreciate I am in a position to know a thing or two about luxury cars.

The modifications I speak of get installed pre-importation so the vehicle gets reclassified before it is shipped and therefore bypasses the luxury car sales tax, no matter it's value. In fact according to the department of 'Car Registration & Automobile Procurement' for every one 'luxury car' imported in 2014 there were over 70 thousand 'pimpmobiles' imported that bypassed the tax of which you speak.

The facts speak for themselves. And if you can't trust the department of C.R.A.P then you can't trust anyone in my humble opinion.

[Magnus]

As someone who happens to be lucky enough to drive a '1998 Triton Utility' you will appreciate I am in a position to know a thing or two about luxury cars.

The modifications I speak of get installed pre-importation so the vehicle gets reclassified before it is shipped and therefore bypasses the luxury car sales tax, no matter it's value. In fact according to the department of 'Car Registration & Automobile Procurement' for every one 'luxury car' imported in 2014 there were over 70 thousand 'pimpmobiles' imported that bypassed the tax of which you speak.

The facts speak for themselves. And if you can't trust the department of C.R.A.P then you can't trust anyone in my humble opinion.

Ok... I'm still not quite sure how modifying the car to change its 'classification' before importation would help it avoid a tax based on its value, though. :confused:

[BigTransformerTrev]

Ok... I'm still not quite sure how modifying the car to change its 'classification' before importation would help it avoid a tax based on its value, though. :confused:

Dude - the company I am quoting has the initials C R A P.

In other worlds - I'm citing pure crap as my source - pay me no heed :p

Sorry man, I thought when I was talking about how driving my 17 year old sh*tbox ute makes me a luxury car expert that would have been a good enough giveaway ;)

[Magnus]

Dude - the company I am quoting has the initials C R A P.

In other worlds - I'm citing pure crap as my source ;)

I was about to ask for a link, too! :o

I thought that abbreviation was too obvious and that there was more to it, in spite of the fact that the organisation you named doesn't exist upon searching. :rolleyes: Ugh. Must be tired. I will admit the reference to the Triton did elicit a raised eyebrow, though.

[llamatron]

As I recall, the Productivity Commission did produce a report in 2012 concluding that it would be too expensive - costing more than revenue raised - to implement. I wonder what's changed?


There was a fairly vague explanation of "advances in technology" making the threshold now viable at lower levels.

As we have a GST it seems reasonable to apply it to imported goods as well. I don't like it either, but thems the breaks!

[AJ_Prime]

Public works and services have to be funded somehow...

Those helicopter rides and trips to the opera won't fund themselves...

[BigTransformerTrev]

I was about to ask for a link, too! :o

I thought that abbreviation was too obvious and that there was more to it, in spite of the fact that the organisation you named doesn't exist upon searching. :rolleyes: Ugh. Must be tired. I will admit the reference to the Triton did elicit a raised eyebrow, though.

Heh - don't worry guy :D. I'm that full of BS that even I can't tell sometimes if I'm spouting bollocks or not :p - it's why I like to put in little clues for all concerned ;)

[PROVOST]

This proposal would require all states and territories to agree on it no?

[Sinnertwin]

This proposal would require all states and territories to agree on it no?

yes, i believe so

[Trent]

yes, i believe so

Once again, there's revenue to be had. They'll agree.

[Sinnertwin]

Once again, there's revenue to be had. They'll agree.

That is also true

[CBratron]

Finally! A voice of reason! (http://www.smh.com.au/business/retail/gst-on-online-imports-will-clog-up-deliveries-says-dhl-boss-20150818-gj1ht3.html)

For those that don't want to read the article. Gary Edstein, Chief Exec of DHL Express Oceania, said scrapping the $1000 tax-free threshold on online deliveries would clog up deliveries and that deliveries should be treated like airline passengers: duty free.

[Zippo]

Because Australia is looking into it, New Zealand is now following by trying to get GST (15% here) added to online digital services. Parcels are too hard at the moment.

If it was just about adding GST it might be ok, but as soon as tax is added on then 3 more taxes are added pushing a $60 GST bill to $120 - and then there is the 5 day wait for the "next business day" letter advising you how to pay your bill.

[griffin]

GST on online purchases will start 1st of July 2017... depending on if Federal Labor backs it, as the legislation would need to be passed before the next election. (so a change of government probably won't make a difference)

As expected, the men running the finances of the country decided against removing GST from specific feminine (health) products.

[BigTransformerTrev]

Well they have agreed on it :(:mad:

Looks like it is going to be on ALL online overseas purchases, regardless of cost. Not going to come in until the 2nd half of 2017 though.

http://www.gizmodo.com.au/2015/08/all-goods-bought-overseas-to-incur-10-per-cent-gst-charge/

[CBratron]

Oh FFS. I just read that gizmodo article and was about to post the link here.

[UltraMarginal]

eh, it's still not being enforced for another 18 months assuming it actually gets passed in parliament.

and seriously 10% hurts the wallet but not as much as a 30% drop in the dollar. if the dollar goes back to parity I'll still be buying a lot of stuff from overseas.

[BigTransformerTrev]

Oh FFS. I just read that gizmodo article and was about to post the link here.

I was busy writing mine and posting it while Griffin must have been posting his :o

[Tetsuwan Convoy]

Well they have agreed on it :(:mad:

Looks like it is going to be on ALL online overseas purchases, regardless of cost. Not going to come in until the 2nd half of 2017 though.

http://www.gizmodo.com.au/2015/08/all-goods-bought-overseas-to-incur-10-per-cent-gst-charge/

Order a bunch of 10cent items in single orders and make them waste their time :D

[G1Optimal]

http://www.gizmodo.com.au/2015/08/all-goods-bought-overseas-to-incur-10-per-cent-gst-charge/

According to that link that if they could start it sooner, so the date could be fowarded before july 2017

[griffin]

GST on online purchases will start 1st of July 2017... depending on if Federal Labor backs it, as the legislation would need to be passed before the next election. (so a change of government probably won't make a difference)

As expected, the men running the finances of the country decided against removing GST from specific feminine (health) products.

To offset this extra expense to the rich, Joe Hockey has been noted (http://www.theguardian.com/australia-news/2015/aug/24/joe-hockey-lays-ground-personal-income-tax-cuts-at-next-election) saying that he wants to cut the top income tax bracket, because the rich are apparently paying too much tax.... because, you know, every rich person is actually paying that full 47% tax rate and struggling. :rolleyes:
(tax deductions, tax-havens, profit-shifting to trusts, Super accounts and off-shore branches of their own business, etc, allows the uber-rich to pay a lower percentage of tax than people in the lower tax brackets... after all, the rich and the friends of the rich get into politics to create the Tax laws that allow them to make millions in allowances, and then avoid having to pay as much tax as the rest of us :mad: )

If Hockey needs an incentive for people to work harder without being slugged in taxes, then maybe cut the tax rates for the lower brackets, who don't have the money to move into tax-deductible programs or the accountants needed to facilitate tax avoidance for a hefty (yet cheaper than a tax bill) fee.

With this guy also wanting to be OUR Prime Minister (https://www.youtube.com/watch?v=OzLByItL5lA), as the Australian figurehead on the world stage, the next federal election should be interesting.

[Lint]

With this guy also wanting to be OUR Prime Minister (https://www.youtube.com/watch?v=OzLByItL5lA), as the Australian figurehead on the world stage, the next federal election should be interesting.

I feel like my life just got shortened by a couple of minutes :p

[MV75]

I'd support this, if they were competing with Australian made products.

Why should we pay more locally for the same thing, sourced from the same place just because it's sold here? Just because?

Yea, I'd like a tax cut, there is no incentive for me to be working overtime as I do most days as it grossly exaggerates into tax. I only ended up with an extra 2k this year over last year from overtime, yet I paid double the tax I did last year. :mad: 2/3rd's of my overtime went to tax. Why bother? And I'm getting less back this year. Which still hasn't been done yet, 2 months waiting... ATO is quick to take.