O/S on-line purchases - get in while you can

[aussiebasser]

The importer has to pay the GST and pass it along. I don't see why the rest of us shouldn't have to do the same thing. At least it will create a more level playing field.

[Scott nthQld]

The importer has to pay the GST and pass it along. I don't see why the rest of us shouldn't have to do the same thing. At least it will create a more level playing field.

Yes but the importer isn't just bringin in one or 2 items like the end consumer. Importers are bringing in Containers and freighters full of product, that's why they pay the GST, big difference between Joe Bloggs bringing in one fishing reel worth $300 compared to the importer bringing in 10,000 of the same reel worth 3 mill.

IMO it won't go far, just the extra manpower and paperwork costs will far outweigh the extra billion dollars of GST.

Gerry Harvey is just a greedy old man set in his ways who instead of changing his business is content to lump it on the Govt. so the Govt look like the bad guys.

Just as an example though, i recently imported a camelbak for fishing, with enough storgae to fit tools and a few boxes of lures. locally, even Online aussie stores, I could not find it cheaper than $250, look it up in the US, and delivered, less than $100 so even with GST on top, i still would have saved over 50%

[Bros]

All the bricks and mortar retailers are getting narky about on line and overseas imports.

They are not the only ones go to Singapore and the traders are complaining that the advantage they had is gone as people can buy on line.

[oldboot]

The importer has to pay the GST and pass it along. I don't see why the rest of us shouldn't have to do the same thing. At least it will create a more level playing field.

We do have to pay the GST above a certain threshold same as everybody.

The threshold is realy there because below the threshold it is hardly worth the effort for the government to collect the $100.....by the time all the forms are filled letters and payment is exchanged in and the payment is processed, recipts issued........it simply is not worth it..

I seem to remember when the GST came in the threshold was $500.....this ment $50 of tax.

Serioulsy it is just another bleat on the part of Gerry Harvey.......dropping the threshold would cost the government money.

cheers

[oldboot]

Just to give an example.

One of my suppliers also supplies some aircraft parts.

They had just quoted a very large contract for a major Australian Airline......They were stunned when the did not win the contract and the winning price was significanly lower....and they had an exclusive on the specified brand.

They were backdoored by their parent company in the US.

cheers

[finga]

Just to give an example.

One of my suppliers also supplies some aircraft parts.

They had just quoted a very large contract for a major Australian Airline......They were stunned when the did not win the contract and the winning price was significanly lower....and they had an exclusive on the specified brand.

They were backdoored by their parent company in the US.

cheers

Why would this be relevant to a thread about the $1,000 import threshold for GST on tackle?
Who knows why someone lost a tender??
A major Australian Airline would not bring in, or have sent here, parts worth under the $1,000 threshold.

And the threshold is only for private consumption isn't it??
Companies still have to pay the GST, unless they're exempt, for any value of import aren't they??
Anybody shed more light onto that??

[Mrs Ronnie H]

Hi
Most companies are GST exempt and there are some items which do not attract duty. The threshold regardless is still $1000.

Ronnie

[oldboot]

Why would this be relevant to a thread about the $1,000 import threshold for GST on tackle?
Who knows why someone lost a tender??
A major Australian Airline would not bring in, or have sent here, parts worth under the $1,000 threshold.

And the threshold is only for private consumption isn't it??
Companies still have to pay the GST, unless they're exempt, for any value of import aren't they??
Anybody shed more light onto that??

Because it is this sort of behaviour that makes overseas purchase so attractive......many overseas parent companies have put an inflated margin on goods imported into australia......and many of them are prepaered to back door their own local subsiduaries.... then their mates like jerry harvey bleat about a market loss to overseas direct sales.

cheers

[oldboot]

Hi
Most companies are GST exempt and there are some items which do not attract duty. The threshold regardless is still $1000.

Ronnie

Tell me under what law any company is GST exempt........

All businesses pay GST on all goods and services it buys, where it applies, then claim it back, in turn they must charge GST on all goods they sell where it applies, then pay that to the government.

This is how GST works........

All importers pay GST at the customs barrier above the threshold.

What Mr hervey is complaining about is the imported purchases below the threshold are 10% cheaper than they would be if above the threshold and that puts the local retailer at a 10% disadvantage.


As far as import duties........there are very much less items attracting duty now than prior to GST........many import duties were dropped or reduced arround the time of GST introduction.

The two most common personaly imported dutyable items now are alcahol and cigarettes

cheerrs

[PinHead]

Tell me under what law any company is GST exempt........

All businesses pay GST on all goods and services it buys, where it applies, then claim it back, in turn they must charge GST on all goods they sell where it applies, then pay that to the government.

This is how GST works........

All importers pay GST at the customs barrier above the threshold.

What Mr hervey is complaining about is the imported purchases below the threshold are 10% cheaper than they would be if above the threshold and that puts the local retailer at a 10% disadvantage.


As far as import duties........there are very much less items attracting duty now than prior to GST........many import duties were dropped or reduced arround the time of GST introduction.

The two most common personaly imported dutyable items now are alcahol and cigarettes

cheerrs

why would anyone bother purchasing from overseas to save a meagre 10%?

As said before, Gerry Hervey is not complaining regarding his business..his losses on self imports are miniscule..he was talking as a whole on lost tax monay to the Govt. He stated the main losses in clothing and sporting goods..items he does not sell.

Let's take an example using some minimum figures:

Item cost overseas - $200

Self import..let's say $50 shipping - purchase price $250.

To the retail sector:

Cost $200
Freight $20
Import duties - ?
So..importer costs - $220
add some profit of 20% = $264

off to the wholesaler
cost = $264
add some profit 25% - $330

off to the retailer -
cost = $330
add some profit - 25% = $412.50
add GST = $453.75.

Retial purchase price = $453.75.

anyone want to buy that item at their retail outlet ????????

[PinHead]

But..as I read somewhere related to this subject...that is not the most damaging part to our economy at the moment.

Parity has not been reached due to a strong Aus $ but rather by the US forcing theirs down which improves their exports a lot.

As all our minerals trading is conducted in US dollars it has also made a huge dent in the profits of the mining companies which in turn reduces the amount of tax they pay.

For an individual the parity is a good thing if purchasing from overseas.

From a National viewpoint it is not a good thing at all..costing us billions.

[bluefin59]

I read on won of the news sites this idea is not happening and the $1000 limit is staying in place ,end of problem as i see it ...matt

[Mrs Ronnie H]

Hi
Most companies are GST exempt and there are some items which do not attract duty. The threshold regardless is still $1000.

Ronnie

Sorry Guys
In my post above I should of stated that most companies are GST deferred-- not exempt. They still pay gst but only at a later date.


Just thought I would clarify that point.
Ronnie

[FNQCairns]

Anyone seen either of the Fed Party's opinion on this? Howard gave it to us as a part the of US free trade agreement (if my memory serves).

impossible to guess what either of the federal party's position would be....except that the opposition if second in opinion, it will be an opposite opinion.

Hope the opposition are first in opinion and it's the publics favour.

[bluefin59]

Shorten made the statement on thursday i think that they will be leaving things as they are for now . I dont have the link but i read it on the courier mails site ..matt