Reminder: GST charges and a Levy on imported items

[Avatar]

The offshore gear spending party is nearly over, folks.
Coming our way and just noted that from July 1 2018 a GST charge will be added to imported products.
The 10 per cent goods and services tax will apply to purchases under $1,000.
An additional proposed levy of (maybe) $7 per parcel would come on top of this to help pay for biosecurity checks of imported goods.
Three months left to get your overseas gear or pay more.

[South_Aussie_Hiker]

Will this apply if you buy them when travelling overseas, or only when importing?

[Mark F]

If the price difference between os purchases and local retailers was only 10% there wouldn't be anything like the level os purchasing that currently takes place, not to mention the lack of choice locally. Personally, if I could buy what I want from a local retailer and only pay 10% more then I would very happily support the local industry.

Only applies to on line purchases - buying when os in theory gets caught when you re-enter the country you should declare it but once the gear is used and tags removed then customs tends to ignore it.

[GPSGuided]

10% plus minimum of $2 fee for a $0.50 Aliexpress item... What a hassle!

[Moondog55]

I thought that the proposed examination/screening fee was going to be between $7 and $22- and the cost of collection will still exceed the revenue raised.

[Giddy_up]

Just another layer of red tape and legality, coupled with revenue raising. Governments are hell bent on removing as much of your pay check from you as often as they can. This time the Government/Agency will say it’s in the public’s best interest......how do they know what the public wants, they neither listen or ask!!

[GPSGuided]

Once implemented, the knock on effect would be that local distributors can up their markup again. Yes, it's all their to arbitrarily increase jobs and spending. But how about improve trade and sectors of the economy we can export?

[Biggles]

The $7 parcel charge is purely speculative at this time and only part of budget discussions. The figures I have seen are between $2 and $5 maximum: I don't know why you are putting the two amounts together. It has not been set in stone or legislated and should not be spoken of as having been implemented until a formal announcement.

The proposed charge under discussion is also applicable to clothing, books and cosmetics. At this time an extant charge of $90 applies on all imports at the gate over $1,000; this is applied (as has always been the case) by Customs and Border Control. The proposed new charge is not levied through Customs and Border Control, which makes it all the more contentious.

I think the Government should be looking at vesting additional security powers in freight companies if screening through the normal channels is proving quite a challenge (a 22 million/year increase in parcels would stretch even the most efficient screening facilities) and forwarders rather than look to retail facilitators, like eBay/Amazon anor Australia Post, to carry the revenue. Of course, Amazon and eBay have already made submissions strongly countering proposed benefits. 1st July should be interesting though.

[Warin]

Will this apply if you buy them when travelling overseas, or only when importing?

Only when importing.

If the price difference between os purchases and local retailers was only 10% there wouldn't be anything like the level os purchasing that currently takes place, not to mention the lack of choice locally. Personally, if I could buy what I want from a local retailer and only pay 10% more then I would very happily support the local industry.

Yes .. I'd be happy to pay 30% more .. just so I can see the thing, or even just better delivery with local support.

buying when os in theory gets caught when you re-enter the country you should declare it but once the gear is used and tags removed then customs tends to ignore it.

Errr ... I don't think there are any charges for personal overseas purchases. After all 'we' have duty free shops to but things here before you leave .. and they don't get charged GST on re-entry.


How are they going to handle Xmass? Or birthday gifts?

[Mark F]

buying when os in theory gets caught when you re-enter the country you should declare it but once the gear is used and tags removed then customs tends to ignore it.

Errr ... I don't think there are any charges for personal overseas purchases. After all 'we' have duty free shops to but things here before you leave .. and they don't get charged GST on re-entry.


How are they going to handle Xmass? Or birthday gifts?

There is a duty free allowance of $900 for os purchased goods on entry to Australia (includes items bought duty free in Aus before departure). Above that you should declare the item(s) and pay customs duty and GST.
https://www.homeaffairs.gov.au/trav/ente/duty-free-concessions

The gifts bit gets rather messy but I expect under law you should declare and pay if over $1000.

[Moondog55]

It's a technicality but i know it has been used before with goods purchased overseas. If you buy O/S and have it stored by a friend or family member it is your property from the moment it is paid for. So even if brand new and not used it can be considered owned for over 12 months depending on the receipt date. I doubt many of us could wait a year for our new tent tho but it may be worth thinking about for some small volume but high value items such as 4 new sleeping bags for the family etc. Or buying a Snowy Owl from Feathered Friends
You use this form

https://www.homeaffairs.gov.au/Forms/Do ... /B534e.pdf
Only useful if you have actually been overseas more than 12 months ago

[Franco]

I am not too sure about this.
The way I understand it from what I have read so far is that the GST will be charged by the OS seller directly (and then paid to the AU Tax Office) and that will happen if the seller exports to Australia $75 k or more.


Example – GST applied to sale of low value good

Lucia lives in Australia and buys a clock online from Stylish Times Co. She pays A$660 for the clock including postage and insurance. Lucia notices that the receipt, dated 22 July 2018, includes A$60 GST. The sale is a low value imported good so the merchant has added GST to the price.
From : https://www.ato.gov.au/business/interna ... consumers/

[Avatar]

Franco said

The way I understand it from what I have read so far is that the GST will be charged by the OS seller directly (and then paid to the AU Tax Office) and that will happen if the seller exports to Australia $75 k or more.

Yes, that sort of offers some hope of relief from GST for some overseas purchases from small sellers.
Which begs the question, since you mention it, does this apply to Tarptent, i.e. does Tarptent export more than $75k to Australia?

[Franco]

let me think about that...

[GPSGuided]

What? Foreign merchants expected to collect GST and then pay ATO? Serious? How many foreign merchants would bother with that? They are not even under ATO’s jurisdiction.

[Warin]

The pollies believe that the overseas suppliers will charge the GST and pass it on to the ATO to maintain business in Australia.

An alternative for them could be selling into Australia untill they reach say $74k and stopping for that year. Saves them paperwork and fee transfers.
It is like being a private business, if you earn less than some amount ($35k?) then you don't have to do the GST stuff.
It places these people/business in a better competitive position, but limits their earnings.
May not be much to stop a very similar business starting to trade for the rest of the year untill they too get close to the limit.

[rcaffin]

The pollies believe that the overseas suppliers will charge the GST and pass it on to the ATO to maintain business in Australia.

I am sure all the Chinese sellers on eBay will hasten to comply.
Rocks in their (pollies) heads.

Cheers
Roger
PS: or HappyGoodness01 will sell up to the limit, then HappyGoodness02 will sell, then HappyGoodness03 ...
Pollies ...

[Avatar]

I am feeling a little more cheerful.
It appears that there remain open some very practical questions on how the new import GST will work.
e.g. (1) verifying if a company's A$75,000 pa (retail?) import limit has been exceeded, which must take into account fluctuations in exchange rates.
Perhaps there will be an "early bird" window each financial year without GST impost, or this could be based on projected sales data.
Perhaps a "licence to import" system might be required enforce this stuff?
(2) enforcing compliance from companies based outside of sovereign jurisdiction
(3) switching ostensible company sources and other loopholes

This is looking like it is targetting very big companies like Amazon. Maybe part of the reason Amazon is setting up onshore??

[GPSGuided]

For every action there’s always a solution ie. Amazon.

[Avatar]

A bit more information emerges..

https://www.theage.com.au/politics/federal/protectionist-tariff-warning-over-tax-hit-coming-for-online-shoppers-20180411-p4z8xy.html

[GPSGuided]

A bit more information emerges..

https://www.theage.com.au/politics/federal/protectionist-tariff-warning-over-tax-hit-coming-for-online-shoppers-20180411-p4z8xy.html

Still sounded like an unenforceable scare tactic (for the majority).