Australia Mulls GST on Items Bought Abroad
By Vittorio Hernandez | November 9, 2012 10:32 AM EST
The advantage enjoyed by online retailers based overseas over bricks and mortar stores insofar as Australian consumers are concerned may soon be removed. A plan by the federal government to collect the general sales tax (GST) for purchases abroad may just level the playing field for both kinds of retailers.
Reports said that the plan to lower the GST exemption from the current $1,000 is the result of a review made by the Gillard government in response to complaints of local retailers that their foreign counterparts enjoy an advantage due to the GST-free high threshold.
To worsen the situation for Australian retailers, the country's currency continues to strengthen, causing Aussies to prefer to buy products overseas which are cheaper due to their GST-exempt status.
Major Australian retailers such as Myer, David Jones and Harvey Norman are among those pushing for a lower GST exemption to as little as $30.
Australian Retailers Association Executive Director Russell Zimmerman favoured the planned changes, which is expected to save jobs in the local retail industry and add $1.6 billion to government coffers.
However, there are concerns that the GST may cause consumers to hold on to their wallets just when Aussies are parting with their hard-earned money. Some consumers clarified that they prefer to buy overseas from online retailers not to escape paying the GST but for convenience and lower cost of goods.
To contact the editor, e-mail:
Most Popular Slideshows
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Chris Martin Getting Serious With Jennifer Lawrence, Actress Joining Coldplay Tour [PHOTOS]
- 2014 US Open Update (Day 4 - Men's Singles): Murray, Djokovic, Raonic and Isner Advance to 3rd Round [PHOTOS]
Join the Conversation
- Apple iPhone 6 Actual Release Date after September 9 Confirmed 128GB Variant with New Resolution
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- Moto G2 Release Roundup: Specs, Pricing, and Release Date Details
- PlayStation 4 Killing Xbox One Costing Microsoft Millions But It's Fine
- Nexus 6 on Release Date Confirmed with Phablet-Size Display as FCC Filing Hints of 5.9-Inch Screen
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans