Can someone explain the new tax for me?

[that_guy]

Hi guys, I've been looking at getting a Sharpstar 60ED from aliexpress but will only have the funds for it at the beginning of July which to my knowledge is when the new tax comes in. I'm not too finance savvy when it comes to import tax and everything, do I need to pay the 10% tax or is that included in the purchase price or will i be given a notice from customs to pay the tax on delivery. I am so confused!

Any help would be appreciated, Thanks
Tony

[Kunama]

At this stage it is anyone's guess, you might be lucky and have it turn up at home unhindered. I doubt that Customs are in a position to vet every single parcel at this early stage of the Government's money grab....

[AndyG]

I've ordered a StarGPS NX-02 from Canada recently. I'm curious if they "hit it at the gate" (sometime next week), "hit it at purchase time" (pre-GST, therefore nothing), or let it go.

The worst possible outcome, is they hold everything until they can "get through it", irrespective of staff numbers assigned to the deed.

I work in a Fed Gov mob, and nothing (sadly) is too ridiculous to be impossible. Please, someone tell me I'm tinfoil hatted/wrong!

[sil]

It should effect you if you order now, but it depends I think more on the knowledge or confusion of the carrier it lands with rather than customs. You shoulndt need to pay anything now, especially to the store (I assume you mean overseas online store). When it lands in the country that is likely to be the date they'll take to charge the tax ("they" being the local carrier who takes charge from the incoming freight point). Don't assume the government will be kind and say you ordered it before this date so we'll let you off, our gov doesnt ever do that, ever. Tyically when I ve been hit its been withe a fedex delivery and they contacted me saying my package is being held until payment of $X for Y reason. So I assume the same , it'll get held and you'll get a mobile call to pay the tax. get ready for new scams to make the rounds and delivery systems to become clogged with held items or most likely they get returned to sender if you can't be reached by phone immediately. (or the person can't be bothered trying to contact you just like delivery drivers often just bring a card to your door and dont try knocking to see if your home. Riots will hopefully ensue.

[AndyG]

I'm not religious, but I'd learn to pray, if for that alone.

[dpastern]

A simple explanation:

Our government screws us, the people, so the filthy rich local business owners can benefit by price raping Australians. Dymocks is a good one at doing this. #nameandshame

[Nikolas]

So no one so far has explained it

[dpastern]

I believe my post accurately explains the new tax.

[casstony]

Apparently you can still buy from overseas shop websites which sell less than $75000 worth annually to Oz and there's no gst (under $1000) but a platform like Aliexpress will have to deal with the tax.

I'm sure it'll be a schmozzle in the beginning.

[troypiggo]

The way I read it is that the international stores will need to be charging it, so should be included in the price you're quoted online. Best to check at time of purchase maybe?

https://www.finder.com.au/australian-gst-changes-international-shopping

[that_guy]

Oh boy, I just want a scope for a reasonable price! Is that so much to ask?

[dpastern]

Aliexpress doesn't need to do anything. The Australian government has ZERO legal control over them as an entity. ZERO. NADA. NIL. ZILCH. NULL. Of course, Australian customs will then illegally intercept any said packages and withhold them illegally from their rightful owners, based on a new tax law that was NOT voted on by the majority of this country's voting age population.

If this corrupt government was so sure that it had the support of the people, then why the hell didn't it throw a referendum on the matter? Oh wait, cos it well and truly knew it had ZERO chance of a referendum for this actually succeeding. Our government does NOT have the best interests of the average Australian consumer at heart with this new "law". It's a greedy money grab to protect dinosaur greedy local distributors and retailers who continue to generally speaking offer crappy support, and price rape Australians for the effort.

[casstony]

Aliexpress might do the same as Amazon and divert traffic to it's Australian website.
It's not worth getting too worried about though - there are much more important issues to be angry about.

[skysurfer]

Not only in Australia, but here in the EU (or most other countries) the same. The big corporations are running our country. That is why I am worried about 2070 and opened a topic on it.
Back to topic: Amazon, Aliexpress or any other online shop can charge taxes, but no foreign government has control on this, the Australian customs can only charge you import tax at arrival.

[RB]

Continually violating the TOS will lead to threads being locked.
One Post deleted.
RB

[Kunama]

To get back to the OP's question:


AliExpress will begin to apply the 10% GST component to any items valued at $1000 or less and purchased through AliExpress from 1 July 2018 onwards. The 10% will apply to the item price and freight charge though some items are sold Free Postage.

In the event that the total is more than $1000 the GST etc will be charged by Australian Customs as previously, including the Customs charges $139 etc.... so in some cases it will be cheaper and more expedient to buy items separately through AliExpress and avoid Customs delays/charges.

[The Mekon]

Your post is absolute rubbish. Clearly you should move to another country that has no government provided benefits like health, education, roads etc (what have the Romans ever done for us?)
Are you perhaps a member of the Peoples Front of Judea?

[Kunama]

I concur John :thumbsup:

The Customs are indeed empowered by law to intercept any item and to seize an item if the importer fails or refuses to pay the required legal taxes and duties or fails to complete the correct importation documentation..... in fact it is their duty to do so.

The onus of proof is on the importer.

Whilst the Australian Government has no legal right to force another country's entity to collect the taxes, items imported without the taxes having been paid can be legally seized by the Australian Customs until such time that the taxes and other relevant charges are paid.

In the case of AliExpress it is cheaper for the importer to have those taxes collected by AliExpress than by Customs.

[Nikolas]

THANK YOU
Thats the clearest and best reply that actually is helpful!

[Nikolas]

Separate question
What happens if a company doesn't have $75000 worth of sales to Australia?
Companies like first light optics comes to mind

[Zuts]

Hi,

GST or not, it seems that is was released. 200 USD of stuff from Baader


UPS Tracking

Location
Date
Local Time
Activity
Botany, Australia
01/07/2018
16:17
Arrival Scan

01/07/2018
9:39
Your package is being processed at the clearance agency. / Your package was released by the clearing agency.

01/07/2018
7:42
Your package is being processed at the clearance agency.
Honolulu, HI, United States
30/06/2018
10:24
Departure Scan

30/06/2018
7:19
Arrival Scan

30/06/2018
14:59
The package is awaiting clearing agency review. / Your package was released by the clearing agency.
Louisville, KY, United States
30/06/2018
4:44
Departure Scan
Louisville, KY, United States
29/06/2018
22:43
Arrival Scan
Koeln, Germany
29/06/2018
22:00
Departure Scan

29/06/2018
0:37
Export Scan

29/06/2018
0:05
Arrival Scan
Muenchen, Germany
28/06/2018
23:00
Departure Scan

28/06/2018
20:56
Arrival Scan
Kirchheim, Germany
28/06/2018
20:50
Departure Scan

28/06/2018
20:34
Origin Scan
Germany
28/06/2018
17:26
Order Processed: Ready for UPS

[AndyG]

Very happy to see that. Well done :)

[Zuts]

Now that I look at it it seems it was released from Hawaii . So I'll keep you posted as it arrived in Botany on the 1st.

Cheers
Paul

[luka]

I think that the order date is what is important, not the date it crosses the Australian border. But I could be wrong...

[that_guy]

I've just been told that if I imported something over $500, I'll attract an additional $200 in import cost. This seems somewhat dubious, is there any legitimacy to this statement?

[casstony]

Told by who? If you were told by an official ask them to point you to the appropriate information on a government website.

[rrussell1962]

Nothing I have read on Govt websites indicates that is the case.

[that_guy]

A retailer contacted me via PM about my wanted ad for an ED60. I won't say who but I thought that statement was bogus. Also, I feel like a retailer contacting someone regarding a wanted ad defeats the whole purpose of a wanted ad. If I wanted to buy new I'd buy new, but I posted the ad to get second hand!

[rrussell1962]

I hope the retailer is public spirited enough to post that information here. It would be of great interest to many of us.

[that_guy]

I've replied back asking for documentations for proof for this "extra import cost". For a product that is $500, a $200 "import cost" + 10% tax is 50% surcharge!

[that_guy]

This is the reply. Ive googled top to bottom about this government levied charge and havent found anything to back it up. This (https://www.homeaffairs.gov.au/trav/impo/buyi) is the link ive been usi g to explain the new tax with no mention of import duty for less than $1000. If anyone has any proof that this fee exists that would be fantastic. But the retailer is yet to provide an official document explaining this fee.

[LewisM]

Gee, that's transparent WHO it is :lol:

Anyway...

[Wavytone]

Well what the government required isn't the only possible way to do this - it does not have to be done by the vendor - it can be handled by the carrier handing the delivery into Australia.

I've just received Import Declarations from FedEx that clearly state what was imported, when, the value, the customs duty, the GST amount, AND the AQIS entry charges,

AND

a letter advising this stuff has to be retained for 5 years from date of entry.
And better, Fedex sends it by email as soon as the shipment clears customs, quarantine and GST is paid.

It strongly suggests order whatever you like from wherever in the US and have FEDEX handle it efficiently - including the damn GST - not the vendor.

For small items the number of carriers is far, far smaller than the number of possible vendors and in this respect the Aus Government clearly didn't think of this solution.

And there's even one better solution - route ALL the foreign stuff through AusPost and have them collect the duties and GST. Bleeding obvious IMHO - all without annoying anyone outside our borders. It would also give AusPost a reason to exist.

[Nikolas]

That retailer is talking nonsense.
The gst for goods under $1000 is charged and supposedly collected by the RETAILER from overseas who has over $75000 worth of sales to Australia
There is NO customs fee at all Name and shame the so called retailer because I would NEVER want to do business with someone who is obviously trying to cash in or just has no clue pm me if you want. I dont want to do business with them period.

[LewisM]

Said dealer has been cashing in on the gullible for a LONG time.

Named and shamed MANY times already. Seems to not stick like a teflon turd.

[Nikolas]

pm mate i have no idea

[LewisM]

Join the dots :lol:

Said dealer has been throwing out this BS spiel for YEARS in an effort to disuade people from importing themselves etc. It's all shinola.

[that_guy]

I'll just outright say who it is, most people seem to know who it is and those who don't should know to stay well clear. It's astromelb (astronomyalive) who contacted me wanting to sell me the 72ED and even tried to sell me the $1500 CF triplet 80mm ED when I just wanted a second hand 60mm ED thats third the price. I also don't like being contacted unsolicited by a retailer via pm.

[LewisM]

:D

There ya go

[Nikolas]

Got ya LOL

[Zuts]

Hi,

A final update, I received two items today, from feathertouch and OPT. Both were ordered before 1st July but arrived after GST was payable. There was no GST charge.

On the other hand I ordered a Hubble artificial star off Ebay from Hong Kong this morning and got wacked USD 2.50 on checkout.

Cheers
Paul

[AndyG]

Thanks Paul, that's put my mind at ease regarding a recent purchase from Canada.

[darrellx]

Just an extension to this discussion - what is the mechanism, if there is one, to claim a GST refund if items are returned and you get the cost of the item refunded, ie not an exchange.

Darrell

[Kunama]

I doubt that scenario has even been considered by the powers that be, a mere suggestion of giving money back would have a certain duo in the Government turning red in the face.

Perhaps they have in place a refund scheme like Singapore Customs, but whatever it is it will be so complex by design that most people will not bother.....

[casstony]

You'd probably be able to pay a significant fee to get your claim assessed (eg. pay $175 to get $50 back).

[rrussell1962]

Well, if the seller has registered for GST they will refund the GST inclusive price and reclaim the GST on their next Business Activity Statement. As, is more likely, they are not registered for GST or even aware of GST - who knows?

[AndyG]

Well, good news (which was probably obvious to anyone rational, unlike panic prone me): my new StarGPS unit arrived safely from Canada this morning. No GST shenanigans, and the parcel arrived in 13 days. There was no tracking, but I'd hazard a guess and say 3/4 of that was from Sydney/Brisbane to Townsville.


Just bought a .965" - 1.25" adaptor on eBay. As expected, +10% at checkout.


/dribble.

[doppler]

The Ebay GST charge is pretty painless, and given the savings by purchasing OS, this will help the govt coffers but will do little to help the likes of Harvey.N
Interesting to note that the GST was taken out as a separate transaction on my bank acc.

[torana68]

What about second hand? From what I can see EBay is applying the new tax to new or used items?

[rrussell1962]

It is all very confusing. I think the legislation treats eBay as being what it refers to as an Electronic Distribution Platform (EDP) and therefore being the effective seller of the goods. Because eBay makes sales of over $75k per year it has to register for and charge GST. Any second hand goods are being sold in the normal course of eBays business and so they are subject to GST in the same way as new goods. If I buy something under $1000 from overseas I will be interested to see if the GST is charged as one transaction on the total cost including postage. I suppose it could be argued that eBay is simply a mechanism for bringing buyers and sellers together and so the person listing the item is actually the seller, but as far as I can see that is not the way the legislation has been written. Obviously a fudge because different rules apply to items bought under the hammer at auction.

[Wavytone]

I’m already noticing sellers in the US and Europe who previously would ship to Aus are now declining to take an order based on either the delivery address or billing address (if paying by credit card).

Solutions:

1. Use a freight forwarding company that provides a delivery address in the sellers country (eg MyUS for America).

2. Use Paypal for payment so your address is not revealed to the vendor.

3. You can write to the vendor and point out that the carrier - such as Fedex - has arrangements established to pay the tax and there is no legal obstacle. This will be harder to do, but it is true Fedex for one does do the GST payment when the good land here and issues a Tax Invoice. No heartache for the vendor.

I should add that I’m already going doing 1 and 2 for parts that have no local alternative here and the only sources are foreign. 3 is unfortunately limited to vendors that offer to ship via FedEx, ie the US. So far I don’t know what will happen with stuff ordered from the EU and China, but I’m going to find out very soon.