Possible lowering of GST threshold on parcels

[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

[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 - 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.

[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.