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Old 28-11-2013, 04:15 PM
Stardrifter_WA
Life is looking up!

Stardrifter_WA is offline
 
Join Date: Sep 2010
Posts: 2,017
Will you still do it?

Hi All

With talk that the Government is considering doing away with the $1,000 tax free threshold on goods purchased overseas, I was wondering if this will make any real difference.

Business is lobbying, quite strongly, to have the threshold removed, as they say it is unfair, as it is hurting business in Australia. It is a fair comment, and quite justified, but will it really make any real difference, particularly considering the cost of collecting this tax?

I often purchase goods from overseas and adding a 10%, plus clearance cost, is not going to make much difference to my purchasing decisions.

Why not? Simply because the cost of the goods overseas are still so much less than the cost of buying the goods in Australia, and that is also taking freight into account. In one particular instance, an item was worth around $180 in Australia (the cheapest price I could get), whereas, I purchased the exact same item from the US for around $65, including freight, and it only took a few days to get here. Adding 10% will make the item a bit more expensive (at $71.50), but that is still around $108 cheaper I am simply not that financial that I can donate $108 to a business in Australia, for effectively, that is what I would be doing.

And, I am not saying business are ripping us off, as it is far more complex than that, as they have very high overheads, and most business I know about have small margins. A lot of the problem is all the middle men, each taking their cut.

My point is, will another 10% on goods, make you buy in Australia? The cost of collecting this tax is just as much as it raises, which is why the threshold was introduced.

Yes, I think we should support Australia business, and I mostly do, however, it is becoming a global marketplace and Australian businesses have to adapt to this reality. And, I live on a meager income these days and have to make my money go further.

And I am saying, that we should pay tax, no question about that, but in paying that tax costs as much as it raises, what is the point if it doesn't protect Australian businesses.

So, the question is, "will you stop purchasing items from overseas, if you have to pay an extra 10% plus clearance cost"?

Cheers Pete
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