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Online purchases to cost 10% more after 01.07.2017

Discussion in 'The Pub' started by mike8863, Aug 21, 2015.

  1. Our greedy, self indulgent, pathetic excuses for politicians have done it again...useless fcukers

    GST to apply to all online purchases after July 1 2017...

    Remember to tell Gerry Harvey and his mega retailer mates to go and get royally fcuked..
    Arseholes already waste the ill-gotten money that they ripoff in their overpriced 'stores' on their fcuking racehorses and other grandiose indulgences. Why do they think they need even more money????

    If they think making online purchases more expensive is going to get me into their ripoff stores, they'll be waiting a long while...

    Rant over......have a nice day.....remember, buy up before July 1, 2017....

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  2. i think this will make it a more level playing field though, but even then a lot of shit is still going to be heaps cheaper and still shipped to you faster.
    the only thing that shits me about this is the officials being flown all over the world to set this up with vendors when, lets be honest - an email would probably suffice...

    sounds like more free holidays at our expense.
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  3. I can't see this happening to every purchase. How do we pay it ? And to who ?
    It's impossible for officials to visit all of the hundreds and thousands of companies in the world that send stuff to Australia
  4. GST to apply to all imports into Australia from July 2017

    All goods bought from overseas will face a 10 per cent goods and services tax from July 2017 under a landmark deal agreed to by state and territory treasurers.

    But the GST on tampons and sanitary products will remain after the treasurers from Liberal Party states including NSW argued against its removal, killing the idea.

    At Friday's tax summit, the treasurers agreed that goods bought from overseas should face exactly the same GST as goods bought in Australia.

    This means that foreign businesses with a turnover of less than $75,000 will be exempt from the requirement to collect it in the same way as are small Australian businesses.

    Big businesses such as Amazon, Apple and Netflix will be asked to collect the tax. Mr Hockey said he expected most to agree. Apple already voluntarily collects Australian GST on sales through its iTunes store.

    "We are going to have taxation officials travel around the world visiting these companies asking them to register for GST purposes," federal Treasurer Joe Hockey said.

    "There could be hundreds of them. However, what we are able to do is to narrow down the number of high-volume goods vendors."

    If things worked well, Mr Hockey might be able to bring in the new requirements early, before July 2017.

    Victorian Treasurer Tim Pallas said the process would take years to bed down.

    "Mr Hockey told us about 50 internet sales companies make up the vast majority of internet sales. Apparently many of them are prepared to do it, but it will take a long time to get this right, if ever," he said.

    Mr Hockey said he had no idea of how much revenue the extra tax would bring, but it was certain to exceed the cost of collection because Australian officials would not be asked to open parcels to check whether tax had been paid.

    Mr Hockey undertook to further investigate a proposal by NSW to lift the GST rate from 10 to 15 per cent, and also a Victorian proposal to lift the Medicare levy from 2 per cent to as much as 5 per cent to fund the gap in state funding that will be left as the Commonwealth withdraws $80 billion of grants to state hospitals and schools over the next 10 years.
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  5. Thanks to Gerry Harvey n his bumchum Dick Smith for that! Agreed with OP. David Jones & Myers got with the program & got their stores on line to compete! I'm sick of these retailers crying poor coz they have to compete with overseas! Too bad so sad pricks! Welcome to the 21st century! Move with the times or get left behind. & have a cry! BAHHHHH
  6. #6 oldcorollas, Aug 21, 2015
    Last edited: Aug 21, 2015
    all the Premiers in the room.. and PM says, pointing to each Premier

    "Do you want more money? and you? and you?.. that's settled then..."

    stupid thing is that it will cost US more, both to pay the GST, and for the 3x cost of that revenue to actually collect it....

    so it's a lose lose for everyone...

    edit: productivity commission said, about reducing threshold to $100
    "Effectively, it may cost the community over $1.2 billion to facilitate the collection of $496 million in revenue,"

    so, in order to collect an extra $21 GST (on average) from every person in Australia....
    WE will pay an extra $52 per person... for Customs and shit to collect it :(

    edits.... but.. 2017 is AFTER the next federal election?.. we still have a chance to stop this :)
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  7. The exchange rate is poor, plus 10% gst, maybe 15%......... it's not looking good. I hate shopping but love opening airmail with shiney things inside............... :(
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  8. At least this will make bricks and mortar stores here (big and small) happier. Personally I wish the government would make the mega/corps like Google and Apple pay their dues here - would be a boatload!!
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  9. far more than any GST... tech, pharma, even Aussie mining Co's...
    government is gutless... take it out of those with no power (until election time), rather than chasing the companies
  10. maybe not so bad?
    "Mr Hockey said he had no idea of how much revenue the extra tax would bring, but it was certain to exceed the cost of collection because Australian officials would not be asked to open parcels to check whether tax had been paid."

    So Customs will not be checking? and if the online seller doesn't charge GST, no-one will know?
    sounds like it will be completely voluntary... since there is no way to prosecute them in another country anyway...

    and you know how companies are with "voluntary" tax payments... :D heck, they don't like making compulsory tax payments..

    Corporate tax avoidance could become a whole lot easier
  11. I buy most things online because its not made in OZ any more,
    Anything over $1000-00 you already pay the GST on it,
    So the maximum you will pay extra is $100-00 GST on anything under $1000-00,
    Its still a lot cheaper to pay the $100-00 extra GST than buy the same products from the Rip Off merchants here, Gerry Harvey and his Mates are a beat up, Whats he going to bleat about now, People will still buy overseas online rather than his super inflated prices,

    Example, You buy online product for $150-00, you pay an extra $15-00 GST,
    Example, You buy online product for $500-00, You pay extra $50-00 GST,
    Example, You buy online product for $999-00 You pay extra $99-90 GST,
    Over $1000-00 you already pay the GST of 10 %,
    It depends on the exchange rate at the time too,
    I bought a Boat online for $150-000-00 I paid $14,200-00 GST, As the exchange rate was high at the time,
    That $150-000-00 actually cost me $142-000-00 AUD because of the exchange rate, So the GST came down as well,
  12. So things will only be 90% cheaper online than from a retailer in our country. It will make it easier for the smaller online companies to compete with the mega online stores if they aren't going to get hit with it. I wouldn't be surprised if we don't see a few more smaller online businesses starting up that will have an annual turnover of less than 75K and exempt from applying the tax.
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  13. Nice boat for that $ - sail or motor? And can you fit your bike on board ;)
  14. #14 Returned, Aug 22, 2015
    Last edited: Aug 22, 2015
    I believe the big retailers do not care about the O/S goods not being charged GST. It is most likely all about completely removing competition.

    The Australian importers/retailers will now set up an industry body with Government backing to write to all overseas retailers that are selling competing products and tell them they have to collect the GST and forward the money or stop selling. If they do not, the Government legislation is in now place for their "illegal" web sites to be blocked

    I suspect thousands of online selling sites ( not, or refusing, to collect GST) will completely disappear. They will be put into the Government web site blocking filter - especially if they are competing with the big retailers. And no one will know, because of the secrecy provisions of that Act and restrictions. And if you talk about them you may be prosecuted for publishing/discussing what is in the filter list.

    If I read it correctly it was $75000 turnover not $75000 sold to Australia/year - so there are a lot of large O/S sellers that will potentially be blocked even if their sales to Australia are low.

    For the smaller companies it is also easier then for the companies just to stop selling to Australia than spend huge $$'s on compliance ( Modifying web/payments, administration etc).

    Those pushing for GST know all this and I suspect this is the real reason - reduce competition ( back to Island Australia again where we get ripped off by big importer/retailers who want to make more billions of dollars).
  15. I'm absolutely flummoxed as to the rationale behind the cost/benefit analysis here.

    The GST is collected (and collection costs paid) by the Federal Government.
    The GST collected is distributed in its entirety to the State Governments, with nothing kept by the Feds to cover collection costs.

    Why on earth would the Feds be committing to a spend from their budget (of however many hundreds of $millions) in order to give the States the extra revenue?

    Something doesn't make sense here.
  16. Does anybody buy overseas for the sake of 10% ? I certainly don't.
    Here's an example. I bought a new set of skis ex-Canada for $500. Paid $140 freight. Price of the same skis in Oz was $1500.
  17. Australians are a pretty passive group really. We let our government get away with too much. We need to take heed from the French and riot. :)

    In seriousness though, applying GST to overseas purchases, it's still going to be cheaper in most instances anyway, depending on how low the AUD goes. What bothers me is them mentioning raising it to maybe 15% or increasing the Medicare levi another 2% to cover their frivolous budgeting. Imagine going to your employer and saying "look, i've spent too much on bikes, hookers and blow, give me a pay rise"?
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  18. " Imagine going to your employer and saying "look, i've spent too much on bikes, hookers and blow, give me a pay rise"? "

    Would not surprise me one bit, politicians spending our money on hookers & blow......Craig Thompson is the most recent that springs to mind....
    though what sort of a hard up hooker would give Bronwyn Bishop or Captain Useless a blow job?????
    the mere thought sends shivers up the spine...eeewwww
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  19. *cough Damien Mantach $1.5million... can't have spent it all on coffee and newspapers :p
    but I bet there won't be a Royal Commission into the LNP because of it :D

    not now the money will be replaced by GST ;)
  20. Doesn't quite work like that.... as a business you buy in stuff to on sell. You pay GST on everything that comes into the business. You then claim all the GST you have paid as input cost. When you sell something you charge GST as a % of your sell price. When you do the BAS statement it goes like this,
    GST charged on goods sold - GST on goods brought into the business = GST the grubberment gets. ( or doesn't get should the GST on inputs be greater than the GST on sales )

    A business not registered for GST cannot claim input GST cost nor can it charge GST on sales.
    Not a situation a business really wants to be in, because all GST paid on things coming into the business can be claimed not just GST on goods going through the business.
    As a business owner it pays to purchase things through/for the business...and then they get lost, stolen, broken etc before making their way home to your place, but the GST stays with the business (your business) as an input cost to reduce your eventual GST liability come BAS time....system was designed by the liberals to be thus rorted...why have a business if you can't indulge in the odd perk.
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