|
My simplistic view of the world suggests rather strongly that the cost of collecting the GST on goods under $1000 will exceed the revenue recovered.
A whole infrastructure will have to be created, staffed and funded to do it.
Assume an average transaction of A$500. GST to be collected A$50. All inbound parcels - not just some, will have to have their customs declarations checked. And someone will have to decide whether the declared value is true or false e.g. understated valuations. Then all items that are dutiable have to be physically separated from those that are not. That will create a dual delivery system - GST-free goods to go for AustPost or other delivery as quickly as possible. Those that are dutiable will have to go to some sort of central holding facility while their GST is collected.
Then a payment mechanism will have to be created - probably a telephone-bank system with people cold-calling you (where the phone number is declared on the customs declaration), and persuade the consignee to give some credit card details to a stranger. Any potential for scams here?? And many people will balk at that.
It goes on and on. The reasons for the $1000 limit established way back when, are still sound.
All that is happening here is that Harvey Norman has tried to force more people into his retail channels. I hope, really, really, hope that it backfires on him very badly. I loathe and detest that guy.
Peter
|