Introduction GST for <$1000 goods (Australia)

[adam1213]

What are everyones thoughts on the introduction of GST for goods less than < $1000 on or before July 1 2017 (http://www.gizmodo.com.au/2015/08/all-goods-bought-overseas-to-incur-10-per-cent-gst-charge/).

It would be interesting to see a proper response from the government in regards to the fact that Productivity Commission "previously ruled that lowering [the GST threshold] would cost more money to enforce than it would collect," rather than side stepping the question.

[wraper]

No threshold at all... You are screwed  . When here threshold was made EUR 11 it just sucked a lot, when it was rised to EUR 22, life became a bit easier. Seems that you'll have a tough luck buying <$10 ebay items. Dave's mailbag will be screwed too. Shipping items with something like DHL will become PITA^2. Also, taxing everything without threshold, they'll need triple their bureaucratic apparatus to manage that, guess what, it will cost more than taxes collected.

[EEVblog]

It would be interesting to see a proper response from the government in regards to the fact that Productivity Commission "previously ruled that lowering [the GST threshold] would cost more money to enforce than it would collect," rather than side stepping the question.

Bingo.
It used to be $300 or so IIRC a long time ago, and they raised it to $1000 because it was costing too much to process.
It would also lead to massive delays and backlogs. Can you imagine every $5 widget from China bought on ebay having to be processed by customs? Insane.
We will become the new Germany.

[bingo600]

Can you imagine every $5 widget from China bought on ebay having to be processed by customs? Insane.
We will become the new Germany.

They check all packages here in Denmark

The limit is US$ 11, more than that amount you have to pay 25% VAT.
But the worst is that "DK Mail" is allowed to charge $21 in VAT handling fee, for claiming the VAT for DK customs.

The fee of $21 makes sure that nothing slips through "DK Mail", as they make $$$$$ on that account.

That sucks big time , and make the *Bay "Global Shipping Program" attractive for some buys.

I wish we had 22€ as a limit , i can't even buy a "Arduino Mega board" wo. getting caught in customs.

/Bingo

[TerraHertz]

I got the impression from some reports today, that the intention isn't for the government to raise money, but more to cause pain to people buying stuff direct from overseas. To 'help local businesses' by making people buy locally.

Which contains several doubtful absurdities:
 - The idea of government ever doing something for anyone else's good, rather than to maximize tax rakeoff to themselves.
 - That even with GST on top, it won't still be cheaper to buy from China rather than through local middle men and their 100% margins.
 - That it would actually be possible to enforce.
 - That government won't massively screw up as usual.
 - That this would make any difference to the terminal implosion of Australian manufacturing industry.
 - That there'll actually be any world economic activity by July 2017 anyway (the way things are going.)

My suggestion would be along the lines of 'just shoot them all.'

[digsys]

Agreed with all the above. The original $300 limit is bearable, but definitely not economical, but $0 is suicide !!
Many will just bring stuff in as a business (manufacturer or wholesaler), and claim it back anyway.

[yodhe]

I think the intention is to ensure no overseas seller will sell to Australians.

According to this :-
http://www.abc.net.au/news/2015-08-21/gst-to-be-applied-to-all-products-services-sold-by-vendors/6715582

Hockey said "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."

I doubt foreign sellers will bother selling stuff to us just to avoid the administrative hassle.

[Muttley Snickers]

They need to pay for the joy fights somehow so now we are the ones that get taken for a ride....

http://www.theaustralian.com.au/national-affairs/politics-news/bronwyn-bishop-stands-firm-amid-chartered-helicopter-furore/story-fn59nqld-1227447041658

[jhalar]

Paying GST on some goods will not stop me from buying from overseas.

Recently I bought a textbook from the US. Cost me US$38, A$54. Adding 10% GST will still make it cheaper than the $110 the book is selling locally for.

[TheElectricChicken]

Mr Harvey Norman wanted this, He has 1,000 race horses and thinks people are stealing from him when they get something from ebay, which is why people are leaving australia and fighting for Al-Qaeda because they probably don't have $1500 fines for garbage bins put out too early, they let kids sit in the front seat, and they don't impose tax on ebay purchases, but they probably would let bronwyn bishop fly in a helicopter to the local dry cleaners to pick up her hair.

[tautech]

Govt is making noises about lowering the limits here in NZ too. 
Currently we have 15% GST added to all goods (including shipping) over US$300 value, this equates to ~NZ$400 at present exchange rates.
But first they're proposing to tax all online data purchases; music, software, movies etc.
It seems the method they will use is to enforce sellers to register before they are eligible to sell to NZ'ers. 
Good luck enforcing that I say. 

[HackedFridgeMagnet]

I think the government may as well try to collect the GST if they think they can.
It might be easy to get it from the customers of the larger companies.

[hendorog]

It used to be $300 or so IIRC a long time ago, and they raised it to $1000 because it was costing too much to process.

In NZ they solved that problem by adding fees. I imported a 3d printer which fell just over the $400 threshold and was charged $120 NZD - $60 was GST and $60 was an assortment of fixed fees.
In addition it delayed the shipment by 2 days despite the fact that DHL already had my customs registration on file and I paid over the phone when they called. If something happens to come in on a courier you haven't used before it takes 4 or 5 days longer.

They are currently talking about dropping the threshold here too. What a mess that will be...

[Psi]

As long as the new limit is above NZ$125 we should be fine 

[TheElectricChicken]

There are plenty of alternatives to fleabay.

Also, drones being so cheap and plentiful, it's about time you sent things overseas that way. HA!

[DrGeoff]

It would be interesting to see a proper response from the government in regards to the fact that Productivity Commission "previously ruled that lowering [the GST threshold] would cost more money to enforce than it would collect," rather than side stepping the question.

Bingo.
It used to be $300 or so IIRC a long time ago, and they raised it to $1000 because it was costing too much to process.
It would also lead to massive delays and backlogs. Can you imagine every $5 widget from China bought on ebay having to be processed by customs? Insane.
We will become the new Germany.

There seems to be an assumption that deliveries arrive in packages via post. I'd like to see them try and do this with software or licenses which are downloaded. Are they going to visit every software vendor and hassle them into collecting taxes for the Horse-trailer Guvmint?

[Muttley Snickers]

Just about everything I've bought from overseas was a "gift or sample", it said so on the label.

[sleemanj]

There seems to be an assumption that deliveries arrive in packages via post. I'd like to see them try and do this with software or licenses which are downloaded. Are they going to visit every software vendor and hassle them into collecting taxes for the Horse-trailer Guvmint?

Tell that to the NZ government, who last week announced that they are going to do just that.  Virtual products/services from overseas vendors, will be liable for GST, the overseas vendors will have to register with the NZ government, collect and remit GST on their sales.  Coloquially,  a "netflix tax".

Yes, I am 100% serious.  This is really what they are planning.

[TheElectricChicken]

how about less OVERBEARING force-feeding people coming off jet airplanes at the airport ALCOHOL "DUTY FREE" and more "duty free" on cheap healthy crap we actually want.

[SeanB]

There seems to be an assumption that deliveries arrive in packages via post. I'd like to see them try and do this with software or licenses which are downloaded. Are they going to visit every software vendor and hassle them into collecting taxes for the Horse-trailer Guvmint?

Tell that to the NZ government, who last week announced that they are going to do just that.  Virtual products/services from overseas vendors, will be liable for GST, the overseas vendors will have to register with the NZ government, collect and remit GST on their sales.  Coloquially,  a "netflix tax".

Yes, I am 100% serious.  This is really what they are planning.

Same here, though they want to have every film, video, picture approved by the Censorship board ( sorry, Film and Publications board), along with every blog post. This after just killing the tourism industry by requiring all children under 18 to travel in with both an original unabridged birth certificate, a passport and original letters of permission from both parents if not with both, along with having it stamped by a Consulate, and then not training the officials at entry points  in to what they actually look like in other countries, then charging for the service if you are refused, along with charging for the holding cell and the deportation flight.

Just arrive after 5PM and they will not be there anyway........

[DrGeoff]

There seems to be an assumption that deliveries arrive in packages via post. I'd like to see them try and do this with software or licenses which are downloaded. Are they going to visit every software vendor and hassle them into collecting taxes for the Horse-trailer Guvmint?

Tell that to the NZ government, who last week announced that they are going to do just that.  Virtual products/services from overseas vendors, will be liable for GST, the overseas vendors will have to register with the NZ government, collect and remit GST on their sales.  Coloquially,  a "netflix tax".

Yes, I am 100% serious.  This is really what they are planning.

And when they say no, because it is an extra and unnecessary expense on the business, what will the Guvmint do then? Use their network filter to ban any connection to that software vendor?
 

[Halcyon]

I'm not bothered so much. In fact, I support raising the GST generally but only if concessions are made elsewhere. Here's my reasoning:

GST is a consumption tax. It doesn't apply to basic foods (such as fresh fruit and vegetables, bread, meat and most dairy), some medical products and services, supply of water etc... In other words, those essential items are mostly GST-free. On the other hand, all the other stuff that I choose to buy is taxed.

Everyone knows that the money for all the services and infrastructure has got to come from somewhere but I hear so many people in this country bitch and moan about paying extra taxes but are more than happy to be consumers of the system. Last financial year I paid over $30,000 in tax (and that's not including tax paid on GST items, fuel taxes etc...), yet I never use the Medicare system, I don't receive any benefits and I don't have children (although I seem to be paying for other people's kids to go to childcare). I'd be more than happy to pay every time I needed to see a doctor if it meant I was saving almost $1500/yr for a Medicare system I didn't use.

... but that's just me and I realise that my situation doesn't work for everyone.

So I had two ideas:

1. Everyone pays more in GST (i.e.: on products they choose to buy and therefore have greater control on how much tax they pay as individuals) but reduce taxes elsewhere where consumers have little to no control (Medicare, fuel, income tax...). I'd also support raising taxes on totally non-essential items such as alcohol and cigarettes. Essentially "flatten" the entire tax system so it's less complex.

or

2. Develop a system where tax payers can "opt out" of certain taxes, but contribute more or "opt in" to others. For example, I might opt out of paying the Medicare levy which meant I would no longer be entitled to Medicare and would have to pay my own doctors bill. Obviously the admin involved in implementing this sort of system is tricky, which is where raising the GST works better.

Above all, I'd like a greater say in where my hard-earned tax dollars go.

[DrGeoff]

Above all, I'd like a greater say in where my hard-earned tax dollars go.

It would be annoying to find out that those tax dollars have been used to subsidise an inefficient tax collection system where tax officers are jollying around the globe trying to convince offshore companies to collect tax on their behalf, which they have no obligation to do so. I think the cost of compliance and collection is going to far outstrip the receipts, and the complications in applying this to online transactions is even more difficult and expensive. A common-sense approach would have been more appropriate rather than trying to appease the retail lobby. As the currency fluctuates in a downward trend, so too will the offshore spending.

[Psi]

Tell that to the NZ government, who last week announced that they are going to do just that.  Virtual products/services from overseas vendors, will be liable for GST, the overseas vendors will have to register with the NZ government, collect and remit GST on their sales.  Coloquially,  a "netflix tax".
Yes, I am 100% serious.  This is really what they are planning.

They seem to be only going after big overseas companies who market in NZ.
like Netflix, Amazon etc. 
Large online retail outlets often have similar deals already in place with other countries for collecting local GST. So asking them to add NZ to the list and collect NZ gst is simple
They are never going to be able to collect GST from online sales of smaller stores. There's just to many to deal with and it would be a logistics nightmare. 

How they plan to collect GST on the vast number of low value packages entering NZ im not sure. I suspect after a careful investigation they will conclude it's too hard and maybe just drop the $400 limit a little, $300 maybe

[zapta]

The fee of $21 makes sure that nothing slips through "DK Mail", as they make $$$$$ on that account.

That's very clever.