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2015 Budget - GST Not Being Lowered on Self Impoted Goods?



2015 Budget - GST Not Being Lowered on Self Impoted Goods?
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Greoboruri
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Joined: 04 Mar 2004
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PostPosted: Mon May 11, 2015 5:50 pm    Post subject: 2015 Budget - GST Not Being Lowered on Self Impoted Goods? Reply with quote
This may be a bit dry, but seeing as a lot of us here import BDs, DVDs, figures et al from Japan, US, UK and other places, you might want to know about this one.

You might me aware that a few years ago that doufus Gerry Harvey was upset people were buying stuff overseas and not paying GST (why the government should collect GST on goods not sold in Australia is beyond me), well despite the fact I thought the federal government might slip it into the budget this year, looks like it was all a bit too hard for Joe Hockey;

Quote:
Despite the push to apply the GST to digital services and downloads known as “intangibles”, the government is yet to propose specific changes to the $1,000 threshold for applying the GST to Australian purchases of physical products such as books and clothing from overseas websites.

Asked to explain the different treatment of digital and physical purchases, Hockey said the Western Australian government had expressed resistance to lowering the GST threshold. He also pointed to past concerns about how much it would cost to administer a lower threshold compared with the revenue that would be gained.


So good news, we're not paying an additional 10% for stuff that you mostly can't purchase here in Australia.
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JESTER
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PostPosted: Mon May 11, 2015 9:41 pm    Post subject: Reply with quote
I agree with that. Trying to get international based shops to add gst to Australian purchases and with the threshold going lower would be a real b1tch to police especially with the current focus being on pedophilia and terrorism.

A lot of anime isn't available locally, not to mention figurines. Wink
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Greoboruri
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PostPosted: Tue May 12, 2015 7:07 am    Post subject: Reply with quote
I don't think it’s be the police’s job, it’s be Australia Post and Customs (Border Force or whatever stupid jingoistic name they call themselves now) to police it. I have no idea how it would work. As for overseas companies adding the GST, you might rope Amazon into doing it, but everyone else is going to ask them to go jump.
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jeff
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PostPosted: Tue May 12, 2015 8:32 am    Post subject: Reply with quote
If they did lower it would be like how it used to be with import tariffs, the parcel would be held at the post office & you would have to pay the GST at the post office. I would imagine that courier delivered parcels would be similar to how GST/VAT is handled in Canada/UK etc, that you have to pay the courier upon delivery & wouldn't the courier companies love that! (NOT!)
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StorminNorman
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PostPosted: Tue May 12, 2015 9:43 am    Post subject: Reply with quote
Infuriatingly, they do want to impose GST for online digital services like Netflix and Steam.

Muppets.
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The Tragic Man
Abriel Nei Debrusc Borl Paryun Lafiel


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PostPosted: Tue May 12, 2015 12:00 pm    Post subject: Reply with quote
Considering Steam already mirrors retail RRP, you have to ask where is that extra 1/11th going, if not GST?
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Sylontack
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Joined: 06 Apr 2007
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Location: Sydney, NSW, Australia

PostPosted: Tue May 12, 2015 12:22 pm    Post subject: Reply with quote
StorminNorman wrote:
Infuriatingly, they do want to impose GST for online digital services like Netflix and Steam.

Muppets.


Why should they have the right to tax us on a service that isn't being locally provided? It's not on Australian servers. It's almost like the government is a bunch of old white men with no grasp on technology.
Surely they've added enough money to their secret stash with all the additional taxes (but it's okay, because it's not the Carbon tax. A tax designed for the benefit of the people and the environment that had very little impact on the average citizen Rolling Eyes ) and budget cuts they've introduced with little alternative action to replace those gaps in the budget. If they're not using our money to create a giant robot or a really good water slide I'm not interested.
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Greoboruri
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PostPosted: Tue May 12, 2015 12:27 pm    Post subject: Reply with quote
jeff wrote:
I would imagine that courier delivered parcels would be similar to how GST/VAT is handled in Canada/UK etc, that you have to pay the courier upon delivery & wouldn't the courier companies love that! (NOT!)
I've already had to pay GST to a courier as it was over AU$500 (GST is $500 for couriers, $1000 for Australia Post), so they already do it. It's annoying as they include the total amount of goods + postage, not just the value of the goods in Australian dollars.
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The Tragic Man
Abriel Nei Debrusc Borl Paryun Lafiel


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PostPosted: Tue May 12, 2015 2:21 pm    Post subject: Reply with quote
The only time I paid GST on a foreign purchase was 2002/2003, back when the threshold was $300. I beleive it was the Gandalf on Shadowfax Sideshow Collectibles release. I got a phone call from Customs and paid over the phone by card. Such a method would definitely be inefficient if the threshold was lowered.
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Greoboruri
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PostPosted: Thu Jul 23, 2015 12:21 pm    Post subject: Reply with quote
Another update on this;
Quote:
Australia's state and federal leaders have agreed in principle to expand the goods and services tax to include goods valued under $1000 purchased online.

The $1000 GST-free threshold for online goods and services has long been a thorn in the side of Australian retailers.

Led by Harvey Norman boss Gerry Harvey, local retailers claim the current structure of the GST puts bricks and mortar operators at an increasing disadvantage to offshore retailers as online shopping grows in popularity.

[...]

However it appears those in opposition to lowering the threshold have changed their tune, with a memo from yesterday's inaugural Australian Leaders Retreat advising the nation's leaders had agreed to extend the GST to cover online goods worth less than $1000.

"As a first step, there was agreement in principle by leaders to broaden the GST to cover overseas online transactions under $1000," the communique read.

"This matter will be referred to the upcoming meeting of treasurers to progress in detail."

The treasurers meeting in late August will consider reducing the threshold from $1000 to $20.


And the dumbest thing about implementing this change;
Quote:
A 2011 Productivity Commission inquiry recommended against lowering the threshold despite finding strong grounds for it to be reduced significantly.

It said lowering the threshold to $20 would cost more than $2 billion to businesses, consumers and government while only generating revenue of around $550 million annually.


Bloody geniuses aren't they?
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The Tragic Man
Abriel Nei Debrusc Borl Paryun Lafiel


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PostPosted: Fri Aug 21, 2015 4:11 pm    Post subject: Reply with quote
So the decision's been made. No threshold. GST on everything imported. Get everything you want before 1st July 2017.
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Greoboruri
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PostPosted: Fri Aug 21, 2015 4:41 pm    Post subject: Reply with quote
Joe Hockey wrote:
"What it effectively means is that we're going to have taxation officials travel around the world and visiting these companies and asking them to register for GST purposes."

Seriously? They're going to be told to bugger off. I'm confused about the entire article. If you buy a physical product from overseas, will you be slugged by the Post Office/courier or does smokin' Joe actually think he's going to get overseas companies to collect the GST for him? He's off his nut if it's the latter.

And will you be slugged by Customs if you're bringing in goods in your suitcase as you come back into Australia from an overseas holidays? Can't imagine many people would be happy with that.
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The Tragic Man
Abriel Nei Debrusc Borl Paryun Lafiel


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PostPosted: Fri Aug 21, 2015 4:51 pm    Post subject: Reply with quote
Yesterday there was a report that if the retailer didn't charge it, it might be charged at courier/post office/pickup point, along with a "service charge" or something, of around $17, regardless of the value of the goods. Haven't heard anything about that today, though.
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Sylontack
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PostPosted: Fri Aug 21, 2015 7:45 pm    Post subject: Reply with quote
I just think it's ridiculous, Aus Government had no hand in goods outside of Australia so I think it's stupid that they can charge a tax on it. Within Australia makes sense, outside of Australia where they've no connection or claim to the goods- doesn't.
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