Quote:
Originally Posted by glend
I would like to know how they can inforce that on foreign retailers. The retailers overseas are not going to collect and remit GST to the ATO. As someone who has run a business here and had to submit GST quarterly, I know the present system cannot be used to collect from them. They might have to put it on the banks and credit card companies and they will charge a fee for that. As many have pointed out previously, the cost to administer it will be more than collected.
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What they'll do is simply extend the current system. The package will be held at the distribution centre, you will be sent a letter requesting payment. Until the payment is received, the goods will not come out of customs.
Quote:
Originally Posted by Steffen
Yes, but arithmetic isn't exactly the strong suit of the amateurs in charge, is it? If anything, this will further blow out the budget.
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The question is what will the above process cost. If a human is involved in sending out GST invoices, then the cost per transaction would probably be in the order of $10, so anything over $100 will be cost effective for the government. Of course if the human is out of the loop the system will pay for itself within a day or so.
In this day and age of electronic overseas purchases, it wouldn't be that hard to include a GST on electronic purchases for the big retailers (EBay etc), for everyone else, who we are more likely to deal with, then, if you want your item, there would be an online system for importing goods into the country.
The big question is ...
Does it really make that much difference?
The most it's going to cost any of us in one transaction is $99.90. If the item is so much cheaper OS, then the added $100 isn't going to make a difference, if it makes it more viable to use a local retailer, then they win as well.
This government is probably pandering to the big end of town, but the alternative governments in each State are also arguing for it, so it probably makes some sense for everyone.
The times it will hurt is when you've got no choice but to go overseas for the item, then it's a 10% tax, straight out, no job protection. Particularly for second-hand goods.
Maybe we should call it a "Great Big Tax on Everything... Under $1000"?
Cheers
Stuart