GST changes

GrahamL · #1 21-05-2018, 05:06 PM

Was reading a little on the upcoming changes to gst after july 1 , whats it mean for an importer of sub $1000 items to they pay and pass on the charge to us or is it only direct imports from OS ?

FlashDrive (Poppy) · #2 21-05-2018, 05:30 PM

Quote:

Originally Posted by GrahamL

Was reading a little on the upcoming changes to gst after july 1 , whats it mean for an importer of sub $1000 items to they pay and pass on the charge to us or is it only direct imports from OS ?

I'd imagine they would.... other wise it effects their bottom line.

Col...

GrahamL · #3 21-05-2018, 05:59 PM

Yeah I'm not sure Col in that the(aus) vendors we buy from sell to us at a gst inclusive price so the tax is already levied ? ,, I have a few lower cost items I have to buy OS soon as I cant get them here so sooner rather than later might be the case , i read an comment from a few that ALL prices will increase and i'm still not sure thats right .

billdan (Bill) · #4 21-05-2018, 06:11 PM

When Joe Hockey was treasurer he tried to get Amazon and Ebay in the U.S to collect GST for Australia, they basically showed him the door.

FlashDrive (Poppy) · #5 21-05-2018, 07:02 PM

Quote:

Originally Posted by GrahamL

Yeah I'm not sure Col in that the(aus) vendors we buy from sell to us at a gst inclusive price so the tax is already levied ? ,, I have a few lower cost items I have to buy OS soon as I cant get them here so sooner rather than later might be the case , i read an comment from a few that ALL prices will increase and i'm still not sure thats right .

Yeah ... see what you mean...but anything up to and including 1K will now attract another 10% if imported .... well that's how I understand it.

if you buy an item for say ...$500.00 from o/seas, you will have to pay another $50.00 to have the privilege of having it.

under the ' old ' scheme ( which still exits ) we wouldn't have to pay any GST at all

I'VE ALSO HEARD A RUMOR THAT THE COST OF THE ITEM PLUS THE POSTAGE

IS ADDED TOGETHER AND THAT IS WHAT THEY WILL CHARGE THE GST ON.....

Col...

The_bluester (Paul) · #6 22-05-2018, 12:15 PM

That is no rumor. It was the case too for items over $1000 and the freight was included in the cost test to apply the GST in the first place.

FlashDrive (Poppy) · #7 22-05-2018, 12:53 PM

Quote:

Originally Posted by The_bluester

That is no rumor. It was the case too for items over $1000 and the freight was included in the cost test to apply the GST in the first place.

This is going to make or break a sale from o/seas for many people ..... for me anyway.

But that ' TAK ' addict in Canberra, it probably won't matter to him....

Col...

Marke (Mark) · #8 22-05-2018, 02:56 PM

I would like to know how the govt is collecting the 10% as it stands you pay it to customs directly but if some Chinese seller sells you an item and adds the 10% to it then they have to declare it to Aus and the govt here is supposed to collect from them ? I cant see this working seriously.

LewisM · #9 22-05-2018, 03:33 PM

Quote:

Originally Posted by FlashDrive

But that ' TAK ' addict in Canberra, it probably won't matter to him....

Col...

Yeah, Matt will shrug it off.

Kal (Andrew) · #10 22-05-2018, 04:38 PM

Quote:

Originally Posted by Marke

I would like to know how the govt is collecting the 10% as it stands you pay it to customs directly but if some Chinese seller sells you an item and adds the 10% to it then they have to declare it to Aus and the govt here is supposed to collect from them ? I cant see this working seriously.

There was a stink over this a year ago when they postponed the implementation by a year. Bausically the Australian government wanted online sites that facilitate the sales (such as ebay/amazon/aliababa) to collect the 10% GST, while those companies basically said "you can get stuffed" back to the aussie government.

At the end of the day the requirement of these foreign companies to collect the tax will be either ignored, or they will simply disable Australian overseas purchases from their sites, which is an easier option for them.

FlashDrive (Poppy) · #11 22-05-2018, 04:42 PM

Quote:

Originally Posted by LewisM

Yeah, Matt will shrug it off.

Yeah ... I had another bloke in mind.....

Kal (Andrew) · #12 22-05-2018, 04:42 PM

I should also note that we have had the 10% GST on digital goods implemented since July 2017. I still don't see online software selling platforms like steam charging or collecting any GST despite the requirement...

Edit - just remembered that my netflix costs did go up last year because of this 10% GST on digital products, so some companies complied.

AndrewJ · #13 22-05-2018, 05:10 PM

I wonder how long it will be before the govt asks the banks to tack 10% tax on any transfers that involve an overseas destination, on the basis you are going to spend it and as such should be taxed :-)

Andrew

FlashDrive (Poppy) · #14 22-05-2018, 05:29 PM

Quote:

Originally Posted by AndrewJ

I wonder how long it will be before the govt asks the banks to tack 10% tax on any transfers that involve an overseas destination, on the basis you are going to spend it and as such should be taxed :-)

Andrew

Good Point ... I use PayPal ... I'll see what they eventually do.

GrahamL · #15 22-05-2018, 06:26 PM

Quote:

they will simply disable Australian overseas purchases from their sites

That seems a likely option , the other being customs mails out a duty payable invoice on everything based on a declared value .

I think the under $1000 probably was a threshold, collecting revenue under that became to costly and time consuming , hopefully sensible wins the day but i have some doubts

Kev11 (Kevin) · #16 22-05-2018, 08:50 PM

Overseas suppliers have to register for GST in a similar manner to domestic firms. I have bought one piece of on-line software (originating in the USA) from a supply point in Eire. The invoice quoted their Australian ATO registration number. How this is could be enforced on all suppliers I do not know.

luka · #17 22-05-2018, 10:10 PM

I don't think it applies to all overseas suppliers, only to those who sell over $75,000 to AU per year (or something like that). The ones who are under that amount, just like the small AU suppliers, do not have to charge GST.

To the question how to enforce it... let me attempt a guess.
Each package already has its value declared and all packages are already scanned at the customs. From this info it is easy to find out how much each overseas company is selling to AU. If the supplier is over the limit then their packages can be stopped at the border either until the buyer pays the GST or until the supplier eventually starts collecting the GST.

Or in other words:
Phase 1: Piss off everybody with a plan that has not been thought thoroughly
Phase 2: ???
Phase 3: Profit

el_draco (Rom) · #18 23-05-2018, 07:02 AM

So, does anybody know whether Turncoats extortion tax applies to stuff that is purchased after July 1 or arrives in Au after July 1?

Kal (Andrew) · #19 23-05-2018, 09:43 AM

Quote:

Originally Posted by el_draco

So, does anybody know whether Turncoats extortion tax applies to stuff that is purchased after July 1 or arrives in Au after July 1?

The change in law applies the tax to the sale of the item, so it would apply to new purchases on and after July 1st

https://www.ato.gov.au/Business/Larg...l-1-July-2018/

el_draco (Rom) · #20 23-05-2018, 06:58 PM

Quote:

Originally Posted by Kal

The change in law applies the tax to the sale of the item, so it would apply to new purchases on and after July 1st

https://www.ato.gov.au/Business/Larg...l-1-July-2018/

That would be useful... about to completely wreck observing for the Southern half of Tassie... if it could be further wrecked