Imported Goods under $1000 GST going ahead this July

[daft009]

So all businesses selling the items once imported, not drop shipping from abroad, and already charging customers gst will be imposed with more fees?

to me it sounds like its NOT aimed at businesses who would order more than $1k at a time anyway.
It's aimed at parcels less than $1k which enter the country for free, without any GST, duties etc payable.

 

[Renato1]

I'e just ordered 150 SR626SW watch batteries from three places in China and Hong Kong for $5.25 total.
After July, if this proposal goes ahead, it would have cost me $20.25, which is still a lot better than paying $2 a battery from the local Chinese $2 shop or $5 from the regular retailers. But still darn annoying.

Presumably, instead of each envelope with the batteries being put in my mail box with my letters, I'll have to spend time and petrol to go to the Post Office and queue with hundreds of others to pay the $5 per parcel, and get my parcel. That is extra darn annoying.

By the time of the next election there will have been six months to a year of people putting up with this annoying burden. I suspect that if Labor say they will scrap this measure, they will make their victory next election a land-slide certainty, and that the idiots who dreamt up this dumb idea deserve their self-initiated self-destructive own goal.

The irony is, that it will have been business that set the Government on this path to its self-destruction.
Regards,
Renato

 

[earlyriser]

to me it sounds like its NOT aimed at businesses who would order more than $1k at a time anyway.
It's aimed at parcels less than $1k which enter the country for free, without any GST, duties etc payable.

eBay is littered with Asian businesses that ship in bulk to 3PL in Australia who then distribute via Australia Post. Are you saying they will not be affected?

 

[daft009]

as per me they might already be paying 10% GST on import as they are importing more than $1k at a time.
Then breaking it down to distribute the individual parcels.

We import $10k-50k at a time and always pay 10% GST on import + some admin costs + the actual freight component, fuel surcharges etc

If we import some samples from time to time, then its usually lower than $1k so its just the freight charge and the goods arrive at our doorstep.

 

[Strategic Aviation]

'Protectionist tariff:' Warning over tax hit coming for online shoppers - Sydney Morning Herald

 

[opusman]

The $5 parcel level is not going ahead apparently.

The 10% GST will only be levied by the major sites (Amazon, ebay, etc) who for some reason have agreed to go along with it.

Smaller websites will probably be unaffected.

 

[Deleted member]

I'e just ordered 150 SR626SW watch batteries from three places in China and Hong Kong for $5.25 total.
After July, if this proposal goes ahead, it would have cost me $20.25, which is still a lot better than paying $2 a battery from the local Chinese $2 shop or $5 from the regular retailers. But still darn annoying.

Presumably, instead of each envelope with the batteries being put in my mail box with my letters, I'll have to spend time and petrol to go to the Post Office and queue with hundreds of others to pay the $5 per parcel, and get my parcel. That is extra darn annoying.

By the time of the next election there will have been six months to a year of people putting up with this annoying burden. I suspect that if Labor say they will scrap this measure, they will make their victory next election a land-slide certainty, and that the idiots who dreamt up this dumb idea deserve their self-initiated self-destructive own goal.

The irony is, that it will have been business that set the Government on this path to its self-destruction.
Regards,
Renato

It may just be me, but I really don’t see any Shorten led government removing said parcel tax.

 

[Limewood]

So if a business imports say $900 in goods they will pay 10% duty even though they charge 10% gst?

 

[serfty]

So if a business imports say $900 in goods they will pay 10% duty even though they charge 10% gst?

Aside from excisable products the only duty IS the GST.

So input tax credits come into play.

i.e. Pay $90 GST for that $900 worth of goods as a business which you then on sell to the public for $1485 nett and pay the $45 difference ($135-$90).

I suspect that would be the case even if the overseas seller did not have an ABN.