GST on imported goods from 1 July 2018

Kaeckerut

Kaeckerut

Member
Grand Society
Joined
Nov 23, 2017
Location
Melbourne
Razor Burn said:
I'm not in it for the banner, I'm kinda worried about the new changes to GST laws and how this will/may effect my future shaving purchases and I'm at a stage now where I'm looking to undertake a self imposed sabbatical and getting a good supply of cheap/effective blades makes perfect sense. I'm more than happy being part of 'Da Menth Heads' :cool:
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I believe the new GST changes will only affect our/consumer overseas purchases. Local businesses shouldn't be affected as they already charge GST.

So I would recommend getting something you can't get locally, or as cheap locally.
 
Kaeckerut said:
I believe the new GST changes will only affect our/consumer overseas purchases. Local businesses shouldn't be affected as they already charge GST.

So I would recommend getting something you can't get locally, or as cheap locally.
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The GST changes will specifically only affect those foreign businesses who agree to collect the GST on behalf of the Australian Government. The ATO has no jurisdiction internationally to compel businesses to collect tax revenue and remit it to their accounts. Many foreign business have already indicated they will not be collecting this tax on behalf of a foreign Government, and no doubt more will emerge 'advertising' this fact for their own advantage.

The situation in Australia remains unchanged with all taxable items subject to a 10% GST.
 
todras said:
The GST changes will specifically only affect those foreign businesses who agree to collect the GST on behalf of the Australian Government. The ATO has no jurisdiction internationally to compel businesses to collect tax revenue and remit it to their accounts. Many foreign business have already indicated they will not be collecting this tax on behalf of a foreign Government, and no doubt more will emerge 'advertising' this fact for their own advantage.

The situation in Australia remains unchanged with all taxable items subject to a 10% GST.
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Thanks for clarifying the GST issue for me @todras - greatly appreciated (y)
 
todras said:
The GST changes will specifically only affect those foreign businesses who agree to collect the GST on behalf of the Australian Government. The ATO has no jurisdiction internationally to compel businesses to collect tax revenue and remit it to their accounts. Many foreign business have already indicated they will not be collecting this tax on behalf of a foreign Government, and no doubt more will emerge 'advertising' this fact for their own advantage.

The situation in Australia remains unchanged with all taxable items subject to a 10% GST.
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Can/will the ATO charge the customer? Like keeping the item/s in customs until the ransom is paid.
 
pvsampson said:
Can/will the ATO charge the customer? Like keeping the item/s in customs until the ransom is paid.
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See I was under the impression that we as consumers would be expected to pay the GST on all o/seas transactions such as PDV but that doesn't really make sense and how @todras describes it makes bloody good sense - hense Amazon and the like saying hell NO to collecting the tax to pay to the ATO. I think I go that right!?

Ferret619 said:
Flick me your address and I’ll send you some more blades just to make things more complicated for you :)
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I appreciate your kind offer but I've still got some from before and I'll happily order some from Jordan for s@%ts & giggles. I'm certain they're legit and if not dad can use them intsead :)
 
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pvsampson said:
Can/will the ATO charge the customer? Like keeping the item/s in customs until the ransom is paid.
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BorderForce has this power already as it pertains to dutiable items of prescribed categories with a value over $1,000.00.

I don't have the time unfortunately to explain the entire body of legislation, but a fairly simple guide can be found here along with the relevant legislation. I do note though that the Schedules provide the classes of goods and the tariff rate.

At the end of the day it will be down to how many parcels they can inspect and verify given their current staff levels. Prohibited item detection is fairly simple, that's scanning and sniffing while ensuring dutiable compliance is far more labor intensive and prone to contention, review and appeal. Most likely the system will work on an origin inspect list (Ebay, big US online retailers & stores) with parcels from this origin having their invoices manually inspected for goods value and compliance and payment of the duty required by the recipient within Australia to have the goods released.

You can thank Gerry Harvey and other big retailers in Australia for their 10 year campaign lobbying the government to introduce this legislation reducing the threshold from $1,000.00.
 
Razor Burn said:
See I was under the impression that we as consumers would be expected to pay the GST on all o/seas transactions such as PDV but that doesn't really make sense and how @todras describes it makes bloody good sense - hense Amazon and the like saying hell NO to collecting the tax to pay to the ATO. I think I go that right!?
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Thats exactly right, the Australian Government (through the ATO) is asking/requiring foreign businesses to collect the GST and remit it to a foreign Governmnt at point of purchase.

Aside from the ridiculous nature of the request, the cost to these businesses to implement, account for and remit the sums of money would be massive. The cost to Australian businesses in collecting the GST is already huge - the BAS system is a nightmare and US and foreign business are fully aware of the costs.

Of course Amazon has said no way, there is absolutely no legal basis whatsoever for the request.
 
todras said:
BorderForce has this power already as it pertains to dutiable items of prescribed categories with a value over $1,000.00.

I don't have the time unfortunately to explain the entire body of legislation, but a fairly simple guide can be found here along with the relevant legislation. I do note though that the Schedules provide the classes of goods and the tariff rate.

At the end of the day it will be down to how many parcels they can inspect and verify given their current staff levels. Prohibited item detection is fairly simple, that's scanning and sniffing while ensuring dutiable compliance is far more labor intensive and prone to contention, review and appeal. Most likely the system will work on an origin inspect list (Ebay, big US online retailers & stores) with parcels from this origin having their invoices manually inspected for goods value and compliance and payment of the duty required by the recipient within Australia to have the goods released.

You can thank Gerry Harvey and other big retailers in Australia for their 10 year campaign lobbying the government to introduce this legislation reducing the threshold from $1,000.00.
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Another brilliant brain fart from this incompotent government. Can't see how this will help Gerry in the long run as I avoid his stores due to the over pricing and ridiculous mark up's but he got his wish :( Cheers again @todras - very informative description.
 
Razor Burn said:
He's certainly lost my business thats for sure the spoiled sport :rage:
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Would have lost mine, if he ever had it ...

Although he generates his cash from the properties not the store sales from memory ...
 
Nightguard said:
You're not the only one. Something people like Gerry Harvey don't seem to understand, it's not the gst that pushed people to buy offshore but the lack of choice and ridiculous local pricing here in Australia.
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Absolutely! The savings are generally well in excess of 10%, if it was just 10$ I would shop locally.

The other difference is service. How is it that I can get knowledgeable customer service through a chat window and not by the staff on the salesroom floor ...

(Has anybody else had the experience of using your smartphone to research in stock and call out the BS your spouse is being told by a salesperson?)
 
Nightguard said:
You're not the only one. Something people like Gerry Harvey don't seem to understand, it's not the gst that pushed people to buy offshore but the lack of choice and ridiculous local pricing here in Australia.
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Absolutely!!! I'd be happy shop locally if what I wanted was available...lack of product & variety makes for poor shopping opportunities :mad:
 
Gerry's business model did not evolve.
It is an antiquated model, which required multiple hundred percentile profit margins in order to be feasible.
Unfortunately for him and all his franchises in each store (each section is a different franchise, hence the piss poor cross section sales support) Australians wised up to his and other retailers price gouging of us, claiming shipping to justify the added expense, despite most items irrespective whatever country they're in requiring shipping from another country.
This is nothing more than a tariff placed upon consumers rather than business and ultimately, protectionism.
I despise companies that protect a MSRP/RRP and restrict international sales.
It is a global economy, consumers shop globally.
Either adapt ad implement global pricing, or face the repercussions of being harshly judged for actively choosing to racially discriminate.
/rant (hands soap box to the next aggrieved member)
 
borked said:
Gerry's business model did not evolve.
It is an antiquated model, which required multiple hundred percentile profit margins in order to be feasible.
Unfortunately for him and all his franchises in each store (each section is a different franchise, hence the piss poor cross section sales support) Australians wised up to his and other retailers price gouging of us, claiming shipping to justify the added expense, despite most items irrespective whatever country they're in requiring shipping from another country.
This is nothing more than a tariff placed upon consumers rather than business and ultimately, protectionism.
I despise companies that protect a MSRP/RRP and restrict international sales.
It is a global economy, consumers shop globally.
Either adapt ad implement global pricing, or face the repercussions of being harshly judged for actively choosing to racially discriminate.
/rant (hands soap box to the next aggrieved member)
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Ditto

(next)
 
borked said:
Gerry's business model did not evolve.
It is an antiquated model, which required multiple hundred percentile profit margins in order to be feasible.
Unfortunately for him and all his franchises in each store (each section is a different franchise, hence the piss poor cross section sales support) Australians wised up to his and other retailers price gouging of us, claiming shipping to justify the added expense, despite most items irrespective whatever country they're in requiring shipping from another country.
This is nothing more than a tariff placed upon consumers rather than business and ultimately, protectionism.
I despise companies that protect a MSRP/RRP and restrict international sales.
It is a global economy, consumers shop globally.
Either adapt ad implement global pricing, or face the repercussions of being harshly judged for actively choosing to racially discriminate.
/rant (hands soap box to the next aggrieved member)
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AGREED (y)(y)(y)
 
Only question I have

Minimum wage in aust > minimum wage in USA.

How can local business counter this disadvantage? You can see how companies try to cheat workers and I am trying to think of a better way
 
Rami said:
Only question I have

Minimum wage in aust > minimum wage in USA.

How can local business counter this disadvantage? You can see how companies try to cheat workers and I am trying to think of a better way
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Good point and this could lead to a very interesting discussion - let's keep it civil :)
 
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