Australia's GST (VAT) threshold for online purchases could fall from $1,000 to $20 - Polidicks

[quote=ABC News]A threshold as low as $20 is being contemplated as the point where the goods and services tax could soon apply to online purchases. [b]While no agreement emerged to increase the GST rate or base[/b], debate on an appropriate level for the GST to kick in has begun after state and territory ministers yesterday agreed the current tax free threshold of $1,000 should be lowered. An agreement on the final level of the new GST threshold is now a new challenge for Treasurer Joe Hockey who needs to get agreement from state and territory leaders. However, the Assistant Treasurer Josh Frydenberg told the ABC's AM program that a tax-free threshold as low as $20 is being seriously considered. "Those numbers have been bandied around, particularly the $20 mark, but that's to be worked out between the [federal, state and territory] treasurers in coming weeks," he said. That would be a significant decrease from the current tax-free threshold of $1,000 for imported goods and is likely to be opposed by online shoppers and consumer groups, but welcomed by domestic retailers. Mr Frydenberg said that Australia is currently "an outlier" by exempting such expensive imports from consumption taxes. [b]"In the United Kingdom they apply the GST to goods and services bought overseas online from 15 pounds; in Canada the threshold is 20 Canadian dollars; in the United States they apply their GST or VAT equivalent to all goods bought online from overseas," Mr Frydenberg observed.[/b][/quote] [url]http://www.abc.net.au/news/2015-07-24/gst-threshold-for-online-shoppers-could-fall-to-20-dollars/6645012[/url] Good

About time Oz got cheaper games on Steam.

[QUOTE=ironman17;48294700]About time Oz got cheaper games on Steam.[/QUOTE] Um what?

I hope it does.

[QUOTE=Antdawg;48294711]Um what?[/QUOTE] Oh wait, that's the tax-free limit on purchases? Never mind, I'm an absolute fucking idiot.

[QUOTE=ironman17;48294700]About time Oz got cheaper games on Steam.[/QUOTE] They are reducing the threshold for when the GST applies (or doesn't apply).. Everything above 20$ would be tax-free.

So I was on the right track the first time? Wow, I really am a complete moron.

[QUOTE=Bradyns;48294724]They are reducing the threshold for when the GST applies (or doesn't apply).. Everything above 20$ would be tax-free.[/QUOTE] This line from the article makes me think otherwise: [quote]That would be a significant decrease from the current tax-free threshold of $1,000 for imported goods and is [b]likely to be opposed by online shoppers [/b] and consumer groups, but welcomed by domestic retailers. [/quote] I think this means GST will apply to goods over $20, as it doesn't at the moment.

[QUOTE=Bradyns;48294724]They are reducing the threshold for when the GST applies (or doesn't apply).. Everything above 20$ would be tax-free.[/QUOTE] It's the other way round isn't it? everyhing over 20 will be taxed

Oh fuck no, I order so much from overseas. Because of the ridiculous shipping costs and to get shit here and our shit dollar, the high tax threshold is my only respite. How will I get my cute anime figures now?

[QUOTE=Lexinator;48294850]It's the other way round isn't it? everyhing over 20 will be taxed[/QUOTE] Yeah, looks that way. Silly me.

This has been an issue in Norway where we instead raised this limit. I think lowering it to near or almost 0 is the way to go. Even though it may seem a bit unfair to make things more expensive, the stuff you buy online will probably still be cheaper, but closer, to the price you would get at a store based in your country. It will make companies that are based in the country and sell things online be more willing to stay as well, as there would be less benefits to moving. Some online stores over here threatened to move out of the country if the limit was raised.

[QUOTE=black_tech;48295024]This has been an issue in Norway where we instead raised this limit. I think lowering it to near or almost 0 is the way to go. Even though it may seem a bit unfair to make things more expensive, the stuff you buy online will probably still be cheaper, but closer, to the price you would get at a store based in your country. It will make companies that are based in the country and sell things online be more willing to stay as well, as there would be less benefits to moving. Some online stores over here threatened to move out of the country if the limit was raised.[/QUOTE] Exactly. This government has actually been quite good with tackling tax evasion, not only by being involved in talks with the state Premiers and territory Chief Ministers where things such as this threshold for online purchases are being discussed, but they are working on fighting against companies using offshore tax havens.

Yeah they had a go at google and apple for avoiding tax, which is ok that said they've been remarkably lenient towards mining companies im not a fan of this policy though because then my netflix bill will go up :(( [editline]26th July 2015[/editline] wait, no, it wont, its under $20, hallelujah

Oh, the GST is only an extra 10% on top right? If so, I can handle an extra $20 on my monthly shipments.

[QUOTE=black_tech;48295024]This has been an issue in Norway where we instead raised this limit. I think lowering it to near or almost 0 is the way to go. Even though it may seem a bit unfair to make things more expensive, the stuff you buy online will probably still be cheaper, but closer, to the price you would get at a store based in your country. It will make companies that are based in the country and sell things online be more willing to stay as well, as there would be less benefits to moving. Some online stores over here threatened to move out of the country if the limit was raised.[/QUOTE] Australia is not a productive country. We have next to no game studios here, or manufacturers. A tonne of stuff we order from overseas you just can't get in Australia, period. VAT is supposed to encourage people to turn to local alternatives, but there are none.

Just to avoid any further confusion. The current GST free threshold is $1000, meaning all purchases over $1000 have the included 10% GST added on. This is now going to be lowered to $20, so purchases over $20 will have the included GST added on. It's been known for a while that it was going to be lowered, as the so called Netflix tax (I believe this is the same, could be wrong though), however I'm pretty surprised that this is being limited to $20 instead of lower. This would mean that cheap services like Spotify and Netflix will continue to be GST free, while services like Foxtel will be more expensive per month. Which is actually a good move by the gov to decrease piracy (except for Foxtel, but that's shit anyway). I may have this all wrong though so apologies if I do. [editline]26th July 2015[/editline] [QUOTE=1239the;48295266]Australia is not a productive country. We have next to no game studios here, or manufacturers. A tonne of stuff we order from overseas you just can't get in Australia, period. VAT is supposed to encourage people to turn to local alternatives, but there are none.[/QUOTE] That's what China is for. We mine and export the commodity, they manufacture it for us, we import it back. It's quite an unusual system.

[QUOTE=Badballer;48295359]Just to avoid any further confusion. The current GST free threshold is $1000, meaning all purchases over $1000 have the included 10% GST added on. This is now going to be lowered to $20, so purchases over $20 will have the included GST added on. It's been known for a while that it was going to be lowered, as the so called Netflix tax (I believe this is the same, could be wrong though), however I'm pretty surprised that this is being limited to $20 instead of lower. This would mean that cheap services like Spotify and Netflix will continue to be GST free, while services like Foxtel will be more expensive per month. Which is actually a good move by the gov to decrease piracy (except for Foxtel, but that's shit anyway). I may have this all wrong though so apologies if I do. [editline]26th July 2015[/editline] That's what China is for. We mine and export the commodity, they manufacture it for us, we import it back. It's quite an unusual system.[/QUOTE] You have it all exactly right. And who knows, maybe Foxtel will drop some of their subscription prices below $20 per month, although I'm guessing that they'd probably get around it by billing fortnightly rather than monthly. The funny thing about people referring to the GST on online purchases as the 'Netflix tax' is that when you buy Netflix gift cards in stores such as Coles, you are actually paying GST for that gift card. [editline]26th July 2015[/editline] [QUOTE=1239the;48295266]Australia is not a productive country. We have next to no game studios here, or manufacturers. A tonne of stuff we order from overseas you just can't get in Australia, period. VAT is supposed to encourage people to turn to local alternatives, but there are none.[/QUOTE] How are VATs supposed to encourage people towards local alternatives if our current system doesn't tax most online purchases, so it's actually the opposite? at the moment it's further encouraging people to buy online.

i hate VAT on imports here in the UK. I end up paying half of the cost of the item I bought in Tax. I never knew Australia was so graceful with it.

[QUOTE=Thomo_UK;48295410]i hate VAT on imports here in the UK. I end up paying half of the cost of the item I bought in Tax. I never knew Australia was so graceful with it.[/QUOTE] Our VAT is relatively low compared to VATs in Europe. Ours is 10%, IIRC some European VATs go for around 25%? I hope they don't change the rate from 10%, it's so easy to calculate how much GST you pay on items. Simply divide the advertised price by eleven.

When you add the price markups set by local businesses (sometimes as high as 300%, maybe more) & whatever other markups added because of our geographical location, high transportation costs from our wage costs, it's not surprising people have been looking to web-based shops to buy things. This just seems to be a knee-jerk reaction to the uncompetitiveness of local businesses who do not want to compete with web-based retailers, all the while keeping prices jacked up for extra profit.

This is terrible, it already costs a buttload to get anything from overseas.

[QUOTE=shutter_eye5;48295613]When you add the price markups set by local businesses (sometimes as high as 300%, maybe more) & whatever other markups added because of our geographical location, high transportation costs from our wage costs, it's not surprising people have been looking to web-based shops to buy things. This just seems to be a knee-jerk reaction to the uncompetitiveness of local businesses who do not want to compete with web-based retailers, all the while keeping prices jacked up for extra profit.[/QUOTE] But how can local businesses try to be more competitive (which they do) when tax rules put them at an inherent disadvantage? Not only do they have to pay for a physical presence and local labour, but they have to collect the GST as well. Which online stores don't have to do. It's actually the online stores who do it for the 'extra profit' because you often do see online stores selling stuff for just below or the same price as local stores while not charging GST, so they end up pocketing that difference which would have otherwise been a saving for the customer or revenue for the tax office. [editline]26th July 2015[/editline] [QUOTE=CertainDOOM;48295633]This is terrible, it already costs a buttload to get anything from overseas.[/QUOTE] Yeah man paying tax is terrible

Why are you a such a bad poster OP?

[QUOTE=duke29;48296068]Why are you a such a bad poster?[/QUOTE] Coming from someone with 7 posts who's already been banned once for shitposting? Mate..

[QUOTE=Antdawg;48296079]Coming from someone with 7 posts who's already been banned once for shitposting? Mate..[/QUOTE] Whatever go suck the governments cocks you fucking loser. [highlight](User was permabanned for this post ("doesn't belong here" - Orkel))[/highlight]

If it's just the gst for things over $20 then I'm fine with it as long as the online store handles the tax on their side with no hidden charges. Online things are already heaps cheaper than retailers 10% won't even make a difference. I brought in a bike costing over $1000 couple of months ago and not only I had to pay 10% gst there was even an additional 5% handling levy and I had to pay some 'application fee' just to pay my damn taxes.

[QUOTE=duke29;48296100]Whatever go suck the governments cocks you fucking loser.[/QUOTE] Banter! [editline]26th July 2015[/editline] Anyway, on topic, in Czech Republic the limit is 20 euro for countries outside of EU, and within EU it's up to the online store just paying VAT within their own home country. It's one of the many things about EU I appreciate quite some.

Might be good to set up an address in the US which receives mail, changes the value of the product as declared and send it onwards to Australia.

[QUOTE=Best4bond;48297418]Might be good to set up an address in the US which receives mail, changes the value of the product as declared and send it onwards to Australia.[/QUOTE] And then when customs open it, and notice that a $2,000 item has been declared as $10, enjoy the fine!