Amazon, Alibaba, eBay and Etsy may block Australian users if GST changes go ahead

[Immortality]

I don't think your politicians have fully though through the implications of what they are suggesting/implementing. Best case scenario is that the new law has so many loopholes in it you can literally fly a plane load of parcels through it

It's good for me though as the NZ government wants to do something similar here in NZ, if they see it's a total flop in Aussie maybe they won't try it here?

 

[Drawnnite]

So, in my case, I want to buy stuff from a well known Bike Brand, but the importer here is useless and wont bring the stuff in. Thus have to go direct to the company and order it form them. Will that now mean not being able to get those products whatsoever?
Will it now mean all overseas companies will be blocked from selling to Aus unless they register for GST?
Just seems strange and weird if that is the case. Going to cut off a huge amount of what people can actually access.

All for protecting Australian businesses, but this doesn't quite seem like the right way to go about it.
Maybe dropping the limit down a bit could help (say to $400 or another figure that works ok), so that they can still collect some dollars without causing Aus to become the next North Korea with access to products

 

[Reaper]

Correct me if I am wrong as I'm not real cluey when it comes to this sort of thing :
# The government currently charges the aussie consumer GST on purchases from overseas that exceed $1000 in value.
# Now they actually want to start taxing sellers from overseas turning over more than $75,000 annually that sell to Australian consumers as well.
To me this just seems like another greedy grab on behalf of the Australian government or they don't want aussies shopping online/overseas.

It's more about bringing the GST laws for low value imported transactions into line with that of locally sourced product. It removes one of the legislated competitive disadvantages that local retailers face when compared to overseas.

# As someone mentioned already, what is going to stop people ordering direct from a sellers website & who is going to stop a seller from overseas sending items to Australia.
# Who if anyone will police what is allowed to be shipped in the delivery of "parcels" into Australia anyway?

Customs?? Exactly the same as they do it now?? I presume customs would collect any GST payable before they will release the package for delivery within Australia. No different to how they do it with larger value GST and duty collections already both here and in many other countries around the world.

I know people on other forums say that they can get around the import GST loophole by having family or friends ship their parts to Australia and marking the parcels as presents. Whether this can still be done I don't honestly know.
I know of at least 1 family friend who currently gets their in-laws in the states to ship expensive machine parts to Australia for them.
My missus has a lot of family in the states, who is going to be able to stop me purchasing parts via these family members that would exceed $1000 or the total ban on overseas shopping (if it happens) and then having these family members send these parts to me in Australia with the parcel marked as presents.

Imports exceeding the value of $1000 already have GST payable and have done since we moved to the GST system. If you are trying to dodge any tax payable it's called tax evasion and is something I strongly encourage you to think twice about.

 

[Not_An_Abba_Fan]

The GST bullshit is not about protecting Australian business, it's trying to generate revenue from the GST platform by applying it worldwide, not just to Australian businesses. The world market then becomes tax collectors for the Govt. I can't see it working. Some bean counter sitting on their arse sipping double decaf soy lattes is justifying their job by thinking up new ways to generate revenue. The number of Australian buyers compared to the world is so insignificant that the sellers will geoblock Australia.

 

[Reaper]

The GST bullshit is not about protecting Australian business, it's trying to generate revenue from the GST platform by applying it worldwide, not just to Australian businesses. The world market then becomes tax collectors for the Govt. I can't see it working. Some bean counter sitting on their arse sipping double decaf soy lattes is justifying their job by thinking up new ways to generate revenue. The number of Australian buyers compared to the world is so insignificant that the sellers will geoblock Australia.

Cost of collection is budgeted at only slightly less than that collected. I doubt it'll return much meaningful revenue to Govco. Also keep in mind that exactly $zero goes to the feds

 

[Nitro_X]

Treasurer Scott Morrison said in a statement that the proposed legislation was "designed to close out loopholes that multinationals and big business are using to avoid paying Australian tax".

"It creates a fairer tax system for Australians and supports Australian small businesses by creating a level playing field against foreign competitors," Morrison said. "These changes ensure Australian businesses, particularly small retailers, do not continue to be unfairly disadvantaged by the current GST exemption that applies to imports of low value goods."

*scratches head*
GST is not a 'business' tax, it is a consumption tax, a tax on the Aussie consumer, even though Aussie vendors/businesses collect the GST, it's not a tax on the business.
So I cant see how it applies to closing loopholes on multinationals avoiding paying Australian tax.
The only disadvantage to Aussie businesses, that I can see in this situation is their administration costs for collecting the GST.

It's another good example of how e-commerce and technology is outpacing government bureaucracy / legislation.
Our government hasn't thought this through very well.

.

 

[Not_An_Abba_Fan]

I think there will be an increase in the number of "gifts" received from overseas if this goes ahead.

 

[Tonner Matt]

Imports exceeding the value of $1000 already have GST payable and have done since we moved to the GST system. If you are trying to dodge any tax payable it's called tax evasion and is something I strongly encourage you to think twice about.

Not trying to dodge any taxes as such. I would happily pay the taxes & duties on any purchases if the value exceeded $1000 to stay legit.
I would still like to be able to have the choice to source some parts from overseas if I wanted to that's all.

I think there will be an increase in the number of "gifts" received from overseas if this goes ahead.

I'm thinking along the same thing lines myself.
Missus has family living in the states. May be getting a few presents sent myself if this all goes ahead.


A perfect example of why I have shopped abroad on occasions:
Saw some Aussie sellers on Ebay wanting upwards of $300 for a Mellings High Volume oil pump.
I purchased from the USA on Ebay an SLP Heavy Duty Ported & Polished oil pump for under $200 delivered to my door.
I'm all for supporting Aussie made and Aussie business, but why would I not buy from overseas when I can purchase something of this sort of build quality with that sort of a price difference.
I suppose at the end of the day we will all just have to wait and see what happens.

 

[Commo Baba]

Yep, and this will be open slather for Australian retailers to add even more "Australia tax" on top.

This was my exact thought " Bend over for more 'Australia Tax'".

When I'm buying cheap 2buck widgets or something that matters that I might need some service with I try to buy from an Aussie seller but there gets to a point like above ^^ when the difference in dollars makes a clear difference.

 

[Reaper]

Not trying to dodge any taxes as such. I would happily pay the taxes & duties on any purchases if the value exceeded $1000 to stay legit.
I would still like to be able to have the choice to source some parts from overseas if I wanted to that's all.

You will still have that choice.

I'm thinking along the same thing lines myself.
Missus has family living in the states. May be getting a few presents sent myself if this all goes ahead.

So you are happy to dodge paying tax then?

A perfect example of why I have shopped abroad on occasions:
Saw some Aussie sellers on Ebay wanting upwards of $300 for a Mellings High Volume oil pump.
I purchased from the USA on Ebay an SLP Heavy Duty Ported & Polished oil pump for under $200 delivered to my door.
I'm all for supporting Aussie made and Aussie business, but why would I not buy from overseas when I can purchase something of this sort of build quality with that sort of a price difference.
I suppose at the end of the day we will all just have to wait and see what happens.

On the example you just quoted, the cost will be $220 - ie an extra $20. I don't see the problem.

*scratches head*
GST is not a 'business' tax, it is a consumption tax, a tax on the Aussie consumer, even though Aussie vendors/businesses collect the GST, it's not a tax on the business.
So I cant see how it applies to closing loopholes on multinationals avoiding paying Australian tax.
The only disadvantage to Aussie businesses, that I can see in this situation is their administration costs for collecting the GST.

Ok - for the not so smart amongst us....

Currently overseas vendors collect no GST on goods to the value of $1000 or less. Local vendors do thus having insta 10% price disadvantage before they even start. This brings them back to the same level from a taxation point of view. With modern accounting software that is run by 99% of all businesses, the actual extra admin of collecting the GST is very minor at the absolute most.

It's another good example of how e-commerce and technology is outpacing government bureaucracy / legislation.
Our government hasn't thought this through very well.

TBH it's the likes of yourself and the headline grabbing media who haven't thought things thru. As for Amazon and the like - well it's very self serving and of course they will come up with anything that removes one of their competitive advantages.