Ratsh%t Retailing

[jetjr]

Possibly we will see less firms prepared to ship overseas

 

It wiil cost more than it returns for sure.

 

 

[Methusala]

Line-up at local Post Office already stretches out the door. Imagine the f**k-up if they had to collect GST on every parcel? Sheeesh! Almost all ebay deliveries from Aust Post come straight to the door. Dropped off with no one at home to collect (or pay!). Not going to happen *any time soon *.

 

 

[Downunder]

You would probably get an email or letter billing you before it will be delivered.

 

Knowing Auspost, it's sure to be a 100% guaranteed shambles.......

 

 

[sain]

I recently had to go through the customs process for an >$1k purchase from overseas. On the whole, the customs people were very helpful, however when it came to identifying the correct tariff code I was at a loss. The item I'd purchased could have sort of fit a number of categories. There is a support service customs provides to assist with this process, but there are long wait times before they can assist (i think 10 working days). I ended up picking a code that looked right if I squinted a bit. Customs was fine with that in the end, but given the fines for screwing it up.....

 

I made some inquiries around the traps after that, as the tariff thing was at odds with the otherwise excellent service I'd received from customs. Apparently it was due to the government's APS staff cuts program, and it never used to be like that.

 

Anyway, if customs has to manage the GST on otherseas purchases thing it will be a complete nightmare, especially with the creative invoicing that seems to occur when buying stuff from china. My most recent purchase (small cutting bits for my CNC machine), which ran to all of $3, was described on the invoice as "Gift - Cosmetics" and had the $US price but didn't indicate the currency.

 

I'm not sure the charging GST for online purchases thing will help our local retailers out much. For all of my recent online purchases even a 100% GST would have worked out cheaper than the local purchase. For the purchase above, which was for 10 cutting bits, If I was charged a GST of $3 I'd still have a $8 saving over the cost of a single cutter in the same size/quality from the local store.

 

 

[cscotthendry]

I'm not sure the charging GST for online purchases thing will help our local retailers out much. For all of my recent online purchases even a 100% GST would have worked out cheaper than the local purchase.

So the question remains about "Who is getting the money?". The ongoing whinge we hear from the business sector is that "it's all the employees' fault because we have to pay them too much." But I don't think that accounts for as much markup as we see here in Oz.

 

 

[fly_tornado]

If its any bonus its most likely that Aircraft Spruce won't be collecting GST as they won't have the turnover to justify the paperwork.

 

 

[aro]

If its any bonus its most likely that Aircraft Spruce won't be collecting GST as they won't have the turnover to justify the paperwork.

Unless there is an exemption in the laws, it's also possible that their accountants point out that they would be breaking Australian law by not charging GST, and they decide that turnover doesn't justify the paperwork so they stop shipping to Australia.

 

Then you will get intermediary companies spring up to handle the GST requirements (actually they already exist) who will charge an additional 5-7% on top of the existing price + GST.

 

See the European Union situation with downloadable software, books, music etc. for a real life example.

 

 

[fly_tornado]

I was under the impression that the states only agreed to the narrow scope of what has been outlined. Adding these extra measures to collect revenue will be cash flow negative.