NSW budget calls for lower GST threshold on imports

The Australian State of New South Wales' annual Budget has called for the threshold at which the nation's ten per cent goods and services tax (GST) is applied to imported goods to be lowered. The GST is collected by Australia's federal government, but handed back to the States. While the tax applies to most goods and services …

[dan1980]

Go away

The first step is to actually do something about the ridiculous gouging that Australian's are subject to across almost all sectors.

The next step is to understand how much of the current spending on overseas shopping would actually end up being spent here in the ideal (from their point of view) case that the threshold is removed entirely.

In many cases, adding the GST would still leave the overseas option cheaper. In other cases, the reason for buying from OS is not cost but selection. In both these instances, people would still buy overseas so the goal of making the local market more competitive is a ruse - the aim is tax revenue. It has nothing to do with helping Aussie businesses and they know it.

If you can buy a pair of jeans from the US for $70 AUD and have them delivered here for an extra $10 AUD then slapping a 10% GST on that is hardly going to get buyers to shop locally when the same item costs $180 AUD here.

[Vaughan 1]

Re: Go away

It is exactly the same situation across the ditch. We have the retailers complaining and pushing for GST/import duties to be applied to all imports but they seem to miss the point that people are buying things significantly cheaper from online stores.

[Goat Jam]

NSW budget calls for lower GST threshold on imports

Thereby proving that politicians are a bunch of clueless morons (as if there ever was any doubt)

At $1000, there is $100 GST applicable. How much does it cost the customs dept to collect that $100 on goods that enter Australia?

Given what we already know about the efficiency of government operations I would say that it would just about be the break even point. If these clowns want to start putting their hand in my pocket to grab $1.90 every time I buy a DVD off Amazon it is going to cost them much more in administration costs than they can ever hope to collect.

And when Amazon start packaging stuff in plain packaging how are those officers going to know which item that arrives on our shores is taxable? Are they going to start opening every package that arrives from overseas and look inside for an invoice?

It is a ludicrous idea.

[david 12]

Re: NSW budget calls for lower GST threshold on imports

I've seen $700 estimate for the all-up cost of collection on $500 (assuming the threshold was lowered to $500). Very little of this is the "cost to the customs department" -- but it's the cost you would expect to pay.

Nobody is suggesting this as a tax-raising measure. The whole point is to make importation unattractive.

They calculated in y2K that from a tax view, $1000 was the sweet spot, and it's only moved up since then.

[dan1980]

Re: NSW budget calls for lower GST threshold on imports

@Goat Jam

"How much does it cost the customs dept . . . ?"

". . . it is going to cost them much more in administration costs than they can ever hope to collect."

Except it's not going to cost "them" - it's going to cost you - the tax payer. (Also me, it just read better with "you".)