GST on Ebay Purchases from July 2017

[McGirr]

This will be interesting with GST being applied to purchases online from July 2017.

http://www.smh.com.au/federal-politics/political-news/gst-set-to-apply-to-all-imports-into-australia-from-july-2017-20150821-gj4vg7.html

Mark

[jk]

NOOOOOOOOO       

[Oldandslow]

It looks like they are going to get the foreign export companies to collect the tax almost on a voluntary system. I don't think too many small companies will comply with that and if they did the Australian gov still has to get it from them. I can see this turning into a real chit fight.

[tk421]

Really don't think it will make that much difference.  A lot of eBay sellers are based in AU now, so they're already paying GST, and for a lot of purchases it won't make it that much more expensive.  Eg I buy my running shoes from Amazon.  I can get two pairs of the same shoe landed in AU for the same price as a single pair bought in Australia.  Even adding GST it's still more expensive to buy in Australia.

The comments by Joe Hockey that it will help protect jobs in Australia are a distraction technique. It's all part of the government Jobs and Growth mantra they're trying to sell because they being hammered elsewhere in the polls and press. Expect more announcements around tougher terrorism legislation and border polices for the same reasons. It's meant to raise them up in the eyes of the voters, and

The treasury estimated it will cost more to administer, than the revenue it generates.  Some of the more marginal sellers will disappear, and some prices to go up. So really it's going to affect the consumers, and cost the government more.  I thought this government was about reducing wasteful spending?

I think it's also about helping their mates in big business protect their profits, by trying to drive some of the competitors away.  I always think it funny that those who make the biggest noise are the ones who introduced buying abroad cheaply and importing into Australia. Now they're grumpy the consumers are doing it for themselves and cry 'unfair'

[JusyApples]

In one sentence you say that joe hockey is creating a distraction technique by saying it will keep jobs in Australia, next you are saying the government is protecting their big business mates... Ah last I checked the Harvey Normans, bing Lee's etc etc all employed Australians and are all battling companies who can import here without paying the tax that other companies do

And yes they may announce tougher border protection and terrorism policies, not sure where you are but last I heard Australia is a terrorist target.

[tk421]

They're protecting the profits of big names who source overseas cheaply and sell here at huge profits. The net effect on jobs of GST on imports will be negligible.   The likes of Harney Norman et al are no longer shops, they're landlords. They sell retails space to franchisees. They need footfall. They're not going to get that if we are all on eBay,Amazon,alibaba etc.

It also sells well to the public, because they can make grand claims that they're a government who is concerned with Aussie jobs. Despite the jobless rate increasing since they came to power. It looks good in headlines.

Without want to get too political. All the government will talk about in the lead up to the election is Jobs and Growth, Jobs and growth, jobs and growth, even though they're providing neither.  You watch all their stat,mets, they'll try and steer the conversation to that mantra. 

That and protecting us from terror are the only things they'll talk about because it's where they feel safest.  They get slated on everything else.  Read more than the Murdoch press and you'll realise Australia is not under a terror threat. There's no more risk that there was 10years ago. Ask the millions of refugees fleeing ISL in Iraq and Syria, where they'd rather be. Monis in Martin pace was a lunatic, lone person looking to make a statement.

The government make make grand claims about protecting us, with new laws that don't do very much (even howard era security advisors agree), but it sells well with the public, and really they don't have to prove anything, there's nothing tangible they have to prove. Because 'look, there's been no terrorist attacks on our soil, aren't we doing a grand job'? But say they're going to improve educTion, they actually have to prove they have, and can be held accountable.

[JusyApples]

Wow you are so out of touch.
Look up the meaning of terror, just because he was a lunatic does not make him a terrorist. And one could argue all terrorists are lunatics. Meanwhile 5 blokes were stopped in Sydney last week attempting to leave to fight for Isis. Never mind the young bloke who tried to kill the two cops in Melbourne. And I could go on and on. Unfortunately I highly doubt you have access to the Intel the federal & state authorities do, otherwise you may be a little more concerned. Protecting us is what they are trying to do, labor however lets hundreds of thousands of people in the country by boat without any idea of who they are, now these very same people have no respect for our laws, our beliefs or our way of life and I deal with these people everyday of the week.

The jobless rate isn't even accurate, the way it's calculated is a joke and no matter what government is in power there is always an element of people who don't want to or can't work so the rate will always be around the same.

I could argue that the unions have cost this country hundreds of thousands of jobs. They push push push employers for pay increases to the point that it's cheaper to move off shore. Look at Holden and ford workers, earning $100k to work in non skilled labour. How can any company compete with overseas manufacturing.

Small businesses are suffering because 15yr old kids are being paid $25 ph to work Sunday's while the business owner is only able to pay them self half that. 
You keep in your own world buddy

[D4D]

[krisandkev]

The treasury estimated it will cost more to administer, than the revenue it generates.  Some of the more marginal sellers will disappear, and some prices to go up. So really it's going to affect the consumers, and cost the government more.  I thought this government was about reducing wasteful spending?

I think it is a no brainer. Why should buying on line be GST free.  Re the costs, the cost evaluations have been revised so the above argument is no longer valid. 

It also sells well to the public, because they can make grand claims that they're a government who is concerned with Aussie jobs. Despite the jobless rate increasing since they came to power. It looks good in headlines.

Without want to get too political. All the government will talk about in the lead up to the election is Jobs and Growth, Jobs and growth, jobs and growth, even though they're providing neither.  You watch all their stat,mets, they'll try and steer the conversation to that mantra. 

That and protecting us from terror are the only things they'll talk about because it's where they feel safest.  They get slated on everything else.  Read more than the Murdoch press and you'll realise Australia is not under a terror threat. There's no more risk that there was 10years ago. Ask the millions of refugees fleeing ISL in Iraq and Syria, where they'd rather be. Monis in Martin pace was a lunatic, lone person looking to make a statement.

The government make make grand claims about protecting us, with new laws that don't do very much (even howard era security advisors agree), but it sells well with the public, and really they don't have to prove anything, there's nothing tangible they have to prove. Because 'look, there's been no terrorist attacks on our soil, aren't we doing a grand job'? But say they're going to improve education, they actually have to prove they have, and can be held accountable.

Please, a previous thread exposed people who have passionate political party views.  Just keep an open mind, for example see what has been happening in the senate. 
And you believe there are no terrorists in this country and that we are not targets.     
I wish this was the case, I really do.  Has the media made up the stories about terrorist plots being foiled? Two that come to mind are the Holsworthy Barracks terror plot and the Anzac Day terror attack plot.  I think a lot of good work has been to the credit of our enforcement agencies and our politician, on all sides.  Lets hope the good work continues. 

Back to the GST, no matter what the government did some say it is good, some say it is bad. I just find it hard to justify the negative arguments. But I suppose I do not buy that much online from overseas.      Kevin

[duggie]

I think that this thread has gone off the rails.

This is not about your political view or anyone else political views .

This is one of the things that s#!t me off with forums, politics and religion should not be involved with these sort of forums.

[JusyApples]

No more government related threads.

[McGirr]

The thread was created more for info not a political debate. Mods it may be best to delete if posts are not related to the topic. Apologies.

Mark

[Garfish]

Mcgirr, no need to apologise for a thread going off track to the topic,  it wii bee interesting to see how this works and how many  businesses charge the Gst compared to those that Remit it to the government.  Agree with the idea just not sure how it will be administered.

[tk421]

I'm happy for the fair share of tax to be paid.  The sooner the ATO goes after the estimated $60billion that is avoided through intra-country transfer the better as far as I am concerned. 

As for the effect on consumers of this it will probably be minor. Apple apparently already pay GST on downloads so we are safe there.  Everything else will go up 10% if the importers bother to pay. Eg Netflix could go up by a dollar a month.  I can't see every eBay vendor applying to pay GST, nor the ATO going after them. And as it only applies to business with turnover greater than $75,000 a year it won't apply to a lot of them anyway

[Snow]

The states are crying poor and the Fed gov is responding accordingly. Taxes! Sure as death.

Watching this thread most intently. Keep it on topic y'all.

[tk421]

I'm happy for the fair share of tax to be paid.  The sooner the ATO goes after the estimated $60billion that is avoided through intra-country transfer the better as far as I am concerned. 

As for the effect on consumers of this it will probably be minor. Apple apparently already pay GST on downloads so we are safe there.  Everything else Something's will go up 10% if the importers bother to pay. Eg Netflix could go up by a dollar a month.  I can't see every eBay vendor applying to pay GST, nor the ATO going after them. And as it only applies to business with turnover greater than $75,000 a year it won't apply to a lot of them anyway

[alnjan]

I just fail to see why this was not done when the GST was first introduced.  I can see that it is a minefield with who pays who tax.  Big problem with a Global Market especially when we do not have a Global Economy.  The USA looked at this a while back and ended up backing out of it.   

[arjay]

Keep in mind that you already pay GST on purchases that cost over $1000.
The modification will catch those purchases under $1000.

Rick

[Spada]

If it will put funds into the public coffers, then I don't really have a problem with it.

My last internet purchase of significance was a new motorcycle helmet that cost me $650 from Italy, so GST would see that price go up to $715.
Retail in Aust was $1180, so the GST is hardly going to discourage me from using overseas stores.

[dales133]

Do they propose to collect gst off a seller in say hong kong,englang or the usa and if so how?
Seems to me to be in joe hockeys own words months ago ,impossible and will cost to much to regulate. Wouldnt most if not all australian sellers already be charging it ?

[Spada]

Do they propose to collect gst off a seller in say hong kong,englang or the usa and if so how?
Seems to me to be in joe hockeys own words months ago ,impossible and will cost to much to regulate. Wouldnt most if not all australian sellers already be charging it ?

Not sure how than plan to collect it in 2017, but at the moment for items over the $1000, you get advised of the amount owing at the time of arrival and the importer (you) need to pay the excise before the goods are released from the clearing house.

[wakychapmans]

my understanding is this:

many of the big overseas mail-order places have already agreed to register with the ATO to collect and remit tax. (think Amazon, CRC, Wiggle etc)

smaller places have the choice... register with the ATO... or the parcel is held up at this end and processed manually. Including the manual ~$42 processing fee (Aust Post, UPS etc) and the up to two week delay in delivery.

[Colmano]

My head hurts 

[kiwipete]

I just don't want to see the overseas sellers adding gst to an item and then not paying it to the ATO.  Wooohooo a 15% increase.. 

Sent from my SM-G900I using Tapatalk

[wakychapmans]

here's something no one is mentioning...

some imported good have duty on them (yes... that's why airports have "duty free" shops)

if your parcel is manually processed at this end, you may find yourself liable for duty as well as gst.

example - "bicycle parts" have no duty, however "sporting goods" have duty of (up to) 10%.