Will you still do it?

[Stardrifter_WA]

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

[wasyoungonce (Brendan)]

I will still be buying from OS.

[AndrewJ]

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,

But just think of all the job options that will create for the unemployed.
We can have rows of people paid to sit at customs and check stuff,
and their pay will then roll back into "our" economy
( Until the contract gets sub let to cheaper offshore centres )

Andrew

[Larryp (Laurie)]

I have been buying my shoes from a large mail-order company in the U.S.
They could not sell some of the brands sold here, but others were ok. Last time I was informed they were unable to sell ANY brand sold here, so I had to buy a brand with no Australian presence.
Fortunately I latched on to some US brands that fit me well.
But the initial difference in price on my favourite brand of walking shoes was $220.00 here and $85.00 in U.S.-that's not going to be compensated by adding GST!
Anyway it seems the local distributers have tied up exclusive rights with the manufacturers to protect their huge margins, so why do they need GST protection?

[Astro_Bot]

Originally Posted by Larryp

... so why do they need GST protection?

You ask that question with a straight face? The answer is: to make more money!

For me, the price difference, including shipping and GST, is still in favour of buying O/S most of the time. But the other reason is product range and availability - a much wider range is available on O/S websites, and they almost always have stock.

I also find that most O/S sites offer better service, but that's just a bonus.

Whether GST gets added or not doesn't fuss me that much. In a way, it might be a good thing - it would remove the last "valid" argument for why local retailers aren't doing well (as well as they'd like) and might finally expose their ineptitude for all to see.

The collection method for GST will interest me much more. If it happens, I sure hope it'll be seamless. Oh, who am I kidding? This is the oz gubment we're taking about - D*ckheads R Us.

It's the exclusive distribution, country-blocking arrangements that annoy me more than the GST question.

[astroron (Ron)]

I will still buy OS, I buy my books OS as they are so much cheaper than here, a book costing $50:00 +10% GST=$55:00 thats still nearly half price compared to the same book here in Aus,and it is posted free.
Cheers

[Larryp (Laurie)]

I think a lot of the push by retailers to apply GST to overseas purchases is to cover their own poor business acumen.
I read in the news today that Harvey Norman and JB HiFi have had dramatic increases in their share prices this year, so they must be doing ok.-but then perhaps they have the ability to sell!
Perhaps some other businesses need to improve their selling skills!
Governments, of course , will jump on the GST bandwagon if they think they can extract more money from us-pretending they are protecting Australian businesses.

[Stardrifter_WA]

Originally Posted by Astro_Bot

You ask that question with a straight face? The answer is: to make more money!

For me, the price difference, including shipping and GST, is still in favour of buying O/S most of the time. But the other reason is product range and availability - a much wider range is available on O/S websites, and they almost always have stock.

The Internet has certainly opened up a new world for products. I found some really neat gadgets online and ordered them last week and got them within a few days. The world is shrinking! It amazes me that I can get something shipped from China for a fraction of the cost of getting something shipped from Sydney, particularly since it gets delivered to my house by the same company

Laurie raises the point that some items cannot be shipped to Australia, due to exclusivity agreements. Yes, I have faced that problem also, and got around it sometimes, and did so with the item I mentioned in my original post. But, it is getting harder, mostly because Australian businesses, and rightly so, are seeking more and more protection, and will continue to do so.

I have also boycotted products that dictate where I HAVE to buy them, there are lots of alternatives these days. It is my money and I will spend it WHERE I want, not where they tell me, particularly if I am having to pay a premium.

[Stardrifter_WA]

Originally Posted by Astro_Bot

You ask that question with a straight face? The answer is: to make more money!

Whether GST gets added or not doesn't fuss me that much. In a way, it might be a good thing - it would remove the last "valid" argument for why local retailers aren't doing well (as well as they'd like) and might finally expose their ineptitude for all to see.

Astro_Bot, you raise a really good point here.

[Shark Bait (Stu)]

I believe that local retailers might want to be careful on this one. I can't see this as being a popular move. The market has come to realise that we were generally being charged too much on a whole range of goods. This could backfire on retailers by creating a sense of resentment among consumers.

[glend (Glen)]

I will continue to buy overseas (for now) and this will only increase overseas purchases in the next six months or so as everybody rushes purchases to beat the deadline - good time to buy scope stuff from overseas if you can stay under the threashold or break up purchases. It probably won't take effect until 1 July next year, so work that credit card.

[FlashDrive (Poppy)]

Yes...I will ... but some factors will govern my decision.
The exchange rate and freight costs involved....then having to add the 10% GST. ...

Col.........

[Bassnut (Fred)]

Ahh you guys. The gov needs to raise revenue, GST is a fair way to do it. GST should be charged on all imports, in fact it should be 15% on imports to cover recovery costs. How can local retailers hope to compete otherwise with a 10% impost straight up regardless. Hate that?. Sure, why not eliminate GST on imports altogether, shut down retailing altogether in OZ and everyone in retail goes on the dole. Then you accept the consequences, or the gov raises revenue some other way, your income tax?.

[FlashDrive (Poppy)]

Originally Posted by Bassnut

Ahh you guys. The gov needs to raise revenue, GST is a fair way to do it. GST should be charged on all imports, in fact it should be 15% on imports to cover recovery costs. How can local retailers hope to compete otherwise with a 10% impost straight up regardless. Hate that?. Sure, why not eliminate GST on imports altogether, shut down retailing altogether in OZ and everyone in retail goes on the dole. Then you accept the consequences, or the gov raises revenue some other way, your income tax?.

I know what your saying Fred......but human nature will ' kick in ' and people will resist to buy on line .... then the ' tax grab ' gets a whole lot less for the Govt.....then it will cost more than they can raise to administer the scheme.

Col.........

[Kunama]

It has to be a substantial saving for me to buy overseas. Having had a few things go missing previously, I now only deal with a select few businesses.

Some items are not available in stores in Australia, so those I seek from O/S.
Bassnut, I agree with your point, if we as Australian are not careful we really will end up as 'tenants' in our own country. I fear Coals, Woolies and Hardly Normal are leading the charge as it is increasingly difficult to buy anything Australian in their stores.

[Bassnut (Fred)]

Originally Posted by FlashDrive

I know what your saying Fred......but human nature will ' kick in ' and people will resist to buy on line .... then the ' tax grab ' gets a whole lot less for the Govt.....then it will cost more than they can raise to administer the scheme.

Col.........

I don't understand, if ppl resist buying on line, then do they go without altogether, really, or do they then buy local?. is "buying" less OS product such a bad thing anyway, don't you have enough cheap stuff already?

[Kunama]

Originally Posted by Bassnut

I don't understand, if ppl resist buying on line, then do they go without altogether, really, or do they then buy local?. is "buying" less OS product such a bad thing anyway, don't you have enough cheap stuff already?

Unfortunately there is so little Astro gear for amateurs made in Australia as 'we' simply cannot compete with the manufacturing costs of o/s factories, esp China, Taiwan et al. Gary's Wildcard Innovations being one exception with their product being the standout in DSCs.

Still, I would hate to see the day when local shops like Bintel, myastroshop A.E.C. etc did not exist as we would then be at the mercy of o/s retailers.

[Wavytone]

Originally Posted by Stardrifter_WA

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

No:

- if the item is simply not available in Australia (often the case),
- if the item is significantly cheaper overseas (enough to warrant the delivery costs)

10% is unlikely to change anything and it will be interesting to see how the government thinks its going to make this work.

[FlashDrive (Poppy)]

Originally Posted by Bassnut

I don't understand, if ppl resist buying on line, then do they go without altogether, really, or do they then buy local?. is "buying" less OS product such a bad thing anyway, don't you have enough cheap stuff already?

true....they may then choose to go without ...because the item is way too over priced in Aussie. .....I've been there and gone without.
No....buying less from o/seas is not such a bad thing either....and as far as having enough cheap stuff.....I'll give you an example....

I recently imported a camera adaptor from Hong Kong ( for my Olympus Digital ) ... landed at my door ( free postage )...for $62.00 all up.
The same item from Camera House ( identical item ) in the local Westfield Shopping Centre quoted me at their counter...$145.00.

Why wouldn't I buy from o/seas at that price difference......you'd be mad not to.

So the big retailers scream....not fair....I don't think so.
I also don't buy all my items o/seas.....just like someone has said here...it's a ' global market ' now.......we can shop anywhere/anytime.....for some it's good....some not so good.

Col............

[RobF (Rob)]

I'm with Fred, although we all hate paying anything more for our goods. While we're at it though why not simplify our complex tax regime a little and make up the shortfall and bit more by increasing the GST across the board. Fairest way to get the budget back in the black.