GST

[Labasy]

It has just been announced that from 2017 GST will be charged on all imports over $20.00 AUD.

This is being implemented to save our local retailers or so they say.

How does everybody feel about this?

Glen

[BowmanBjorn]

i guess its only fair. the retailers and suppliers have to pay GST on all imports an what they buy within in Australia.

it needs to be evened out either everyone pays it or none pays it.

there are so many hurdles in the way for Australian retailers to deal with this will help a little:
- GST
- wages (over 3x as high as the USA) average shop assistant wage in USA is $8/hour with no benefits, holidays or sick leave. average shop staffs wage in australia taking into account super, taxes and benefits is $28/hour)
- rent (on average 2x as high as USA)
- smaller population of potential customers
- extremely high freight costs domestically

i know it sucks for some things but ultimately it should end up with better quality retailers in australia which are in a better position to help the sports they work in.

no i'm not a retailer, but i do work in the manufacturing and import industry.

[bigbob]

I think it's bloody disgusting! Nearly all the material i get from USA is not available here in Australia and with the current exchange rates and shipping my costs are already sky high. On a recent small order for 'glass etc which came to US $135 my payout was $265 aus.Almost double and these costs then have to be passed on. Now that I will have to pay this extra amount which in my case is protecting no local business but a pure cash grab by Government then my customers are the real losers. If the government went after the major multinational tax avoiders here then we would have no need to drag the last few sheckels out of the pockets of battlers.I am angry!

[Ian Turner]

I am afraid i have to agree with BowmanBjorn on this our retailers costs are way higher that those in other countries and if those that work in retail, and those that plan on working in retail are going to have a hope in hell of keeping / getting a job then taxes have to be brought into line and a "level"playing field created.
Further its not only those that work in retail that have employment concerns but all those people indirectly employed that service those that work in retail and so on and so forth.
Whilst for those such as Bob it does create an issue though.
My 2 bob's worth anyway.
Cheers

[little arrows]

yes up go the prices - it does make it hard for us as there are no Aussie makers of nocks points etc - so everthing is going to go up.

oh well you get that.

sue

[littlejohn59]

You asked!

I love being an Australian.

Bend over Ozzie and we the government shall shaft you just a little more.

Don’t worry it won’t hurt much!

A little more tax that can be collected and misappropriatedly spent by our government!

Let me see Myki Victoria’s exceptional public transport system that has been operational for 10 years and doesn’t work. Its over budget by about $.5billion.......mmm what can I say.

Fuel recently dropped to under $50 a barrel of crude oil. It was trading at around $80 a barrel in May & June. I am so happy to see the price drop passed on to consumers.

Not to mention travel expenses by politicians. I can go on, but I won’t.

So the new GST that’s to be collected, a proportion will be passed on to help Ozzie businesses in 2017. I don’ think so.

So what do I think? I better buy more archery gear before 2017.

Thanks for asking Glen

[Labasy]

I agree with bigbob and little john.
I work in an industry thats closely related to what this site is about. We import and wholesale products with minimum 100 percent mark up but depending on what it is sometimes as much as 200. I can say from experience clothing etc is even higher. Our wholesalers and importers are greedy and caused us Aussies to import products direct and now we get screwed again.

Glen

[BowmanBjorn]

Labasy sorry to here you have wholesalers that are greedy. i'm a distributor manufacturer in a none related industry and i can tell you right now i run on significantly lower margins than 100% markup!


i already have to pay the 10% GST on goods imported and i always have had to. we tend to order in volumes with value in access of $50,000 so we have never met the under$1000 threshold.

the retailers HAVE to pay the GST on all goods they purchase regardless of cost within Australia.

i'd happily see the 10% GST NOT added in 2017 if it was made FARE and EQUAL to ALL. if a person doesn't have to pay GST on an import why do i have to pay it for my imports? thats the issue at the end of the day.

level the playing field so that local business's including importers, retailers, Bowyers and fletchers have a fair go.

for the bowyers and fletchers on this site. is it fair that you have to charge me GST on the bow and arrows you sell me but i don't have to pay GST if i import a bow or arrows from the USA? it automatily means that before you even start your 10% more expensive.

for example:

purchase a long bow in Australia for $990 before freight( $90 of that is TAX)
same bow in the USA can be sold for $900 before freight ($0 tax)

automatically a cost benefit to the US supplier over the Australian one before you even take into account our extremely high wages and cost of doing business.

so this is how it currently stands not just for importers but also for our very own bowyers and fletchers.

i don't advocate additional Taxes but i find it maddening that our local industry isn't supported by our own governments. i'd prefer NO GST on all imports regardless of value but thats not going to happen.

[BowmanBjorn]

for those not related to retail and have a background in a trade such as an electrician, mechanic, school teacher etc.

what if your employers were able to hire unlimited labour from over seas because it was significantly cheaper than paying a local worker. Alternatively you have to loose 10% of your wage to compete?

what is fair an equitable? is it fair you suck it up and loose 10% of your salary or is it more fair that the government steps in and limits the ability to bring in and pay less for workers?

i'll get flamed for this but this is the equivalent to what is currently happening for australian businesses.

[bigbob]

Labasy you mention of a longbow for say $900 in USA brings my relevant point to bear. That bow would have cost the maker less than half what it would an Aussie bowyer if it was a glass bow,in materials and people will inevitably make price comparisons despite the non level playing field. My original comment about the billions of dollars in uncollected taxes owing by big corporations is true and valid. Has any body seen any concerted effort by this current lot of neanderthals currently in charge of the pig trough in Canberra to recover any of this? If they even obtained a portion owing then this exercise would be unnecessary.

[greybeard]

At present the country is in fairly deep poo. Playing the blame game won’t help to resolve the issue and unfortunately we are stuck in the muck and mire in part created by an inept dysfunctional Federal Parliament.

We have a medical system that we can’t afford and a welfare system that in some cases is too generous, illegal immigration, overseas aid etc. and at times an obscene retirement package that is given to politicians who have been sacked by the people.

Broadening the tax base on goods and services is one way of adding to the government’s coffers.

My first wide screen TV cost just under $2000.00 which yielded approximately $180.00 GST for the government.

Today the same size TV is under $300.00 which will yield approximately $27.00 GST. Computers, digital cameras etc. have never been so cheap so is it any wonder the government coffers are suffering.

For some time now the Retailers Association and Gerry Harvey have been complaining to the government about not having a level playing field as orders under $1000.00 placed outside Australia were not subject to GST.

When purchasing goods from overseas I am certain Gerry Harvey and the likes are getting discounts for bulk orders far greater than the 10% GST.

The government has removed a thorn in its side by applying the tax to small on line orders and won’t have to put up with the continual bleating and whinging of the Retailers Association etc. There is no use complaining about the tax as it has been approved by all parties.

Applying GST to small orders is the least of my worries as the exchange rate of the Aus. dollar and spiralling postage/freight rates are more of a concern.

Before the dollar crashed I bought an assorted quantity of fibre glass strips from Bingham’s with an all up cost of $374.82 which at the time the Aus. dollar was buying .8722853 US dollars.

The all up cost of buying the same product mix in Australia would have been $482.82.

Even if GST was applied it was still cheaper to purchase from overseas.

Daryl.

[discord]

If you are making and selling something, or importing something to resell, ie archery equipment and charging GST for it, I was under the impression you are entitled to claim an input tax credit for your expenses...

(I hope this devil's advocate hat is bullet proof)

[greybeard]

The following may explain the parameters re credits.

https://www.ato.gov.au/Business/GST/Cla ... ST-credit/

On the other side of the coin how many people declare the profits they make from their hobbies / crafts etc. on their income tax return.

Daryl.

[perry]

Lots of good points made on both sides of the Argument here. For me it boils down to available income and bang for my Dollar.

I learned to make my own Archery and much of my Shooting Equipment because I didn't have a lot of money before the GST was introduced in the late 90's. Now I rarely buy new supplies for my Archery because I recycle much of my Broken stuff and pick up other Peoples broken Arrows etc that they throw away and recycle them. I also Buy 2nd Grade goods and work around Faults or Blemishes. Over the Decades I have accumulated a lot of stuff that's waiting to be Recycled

Paying GST for what I may need from Oversea's is just another Hurdle that makes it more expensive for me to enjoy my Pastimes. Quite simply most of what I need is not available in Australia for reasonable Cost and if it is it is double to triple the Price. Even now at about 73 Cents for the Aussie Dollar and after paying the spiraling Postage charges and the exchange Rate I can still Buy stuff from oversea's much cheaper than in Australia.

Looks like I'll just get more frugal and learn to make more of what I need, Improvise Repairs or simply go without !

Why is it that Governments first reaction is to stick it too the little Fella first, why not go after the big end of Town !!

Why is it that Oversea's Owned Business's can rort our Taxation System and make it look like they are making a loss in Australia to escape Paying a fair share of Tax ??

regards Jacko

[Ronster]

If our crap pollies ran the country like they line their own pockets, our Australia would not be in the state it is in.

I personally cannot afford to pay hundreds of more dollars for archery or other products from retail in Aus as apposed to other countries,

There have been several occasions where even postage costs from overseas are lower than ours, work that one out!

JMO Ronster

[greybeard]

........ If the government went after the major multinational tax avoiders here.........

....My original comment about the billions of dollars in uncollected taxes owing by big corporations is true and valid.....to recover any of this? If they even obtained a portion owing then this exercise would be unnecessary.

.....Why is it that Governments first reaction is to stick it too the little Fella first, why not go after the big end of Town. Why is it that Oversea's Owned Business's can rort our Taxation System........

Have/are these companies breaking Australian taxation legislation? If they are working within the taxation laws they are not rorting the system.

Are our taxation laws the real culprit?

On the other side of the coin how many people declare the profits they make from their hobbies / crafts etc. on their income tax return.

Daryl.

[Hamish]

I'd like to see how much it actually costs for the govt to collect the GST, on goods worth less than $1000. From memory goods for over $1000 you have to pay GST and also extra $40-100 to submit the paperwork to actually pay.
For every purchase of $20, or more by post its going to cost a $1 or so to post the bill out to you, someone to process it on its way out and on its way back, either by hand or over the phone. That's going to cost a lot more than the $2 they will be receiving from a $20 transaction.
With the vast volume of transactions that are occurring I can't see how they can effectively collect the money to make a profit, without adding another processing fee. Imagine if you had 10 low cost items items coming in from overseas over a month that's a lot of transaction fees on top of the GST.
Our politicians can think they're great having a talk fest, coming up with thought bubbles, but it doesn't mean much if the actual process and the feasibility doesn't exist.
The reason the present threshold was set at $1000 was mainly because it wasn't worth the govts effort trying to collect it if it was lower.