The Australian Online Tax Dream: A Level Playing Field

By Jessica Benton | 03 Apr 2013

The Australian Federal Government must take action to slash the $1,000 Goods and Services Tax exemption for goods purchased overseas, according to a retail industry expert. Otherwise, local retailers face severe implications.

Retail industry bodies and experts are calling on the Australian Federal Government to step in and aid local retailers from the imminent GST loophole from overseas goods bought online.

Retail Directions‘ Managing Director Andrew Gorecki says Government action must be applied to online tax for Australian retailers to survive overseas activity.

“The retail sector is already under severe pressure from globally uncompetitive labour costs, overinflated rents, continually expanding legislation and depressed customer confidence. These factors alone should have scared the Government into action, before it is too late and permanent damage is inflicted on the industry. Instead, the opposite is happening and the industry is being put under more pressure,” he says.

“The retail industry must engage the public to remove this discriminatory impost on Australian retailers. The Government must remove it from the goods purchased over the internet in Australia. This would level the playing field, at least as far as the GST is concerned. The Government shouldn’t have a problem which such a change if their claims are true that the GST on online purchases is immaterial.”

The Australian National Retailers Association has commissioned an Ernst & Young report that looks at obtaining GST from registered overseas suppliers or local purchasers. A similar process takes place in the UK. The Financial Review reported today the report shows an extra billion dollars could be gained  if the GST loophole is closed. According to the report, if the $1,000 GST threshold is lowered to $20, $997 million could go to state governments in 2014-15. This figure could grow to $1.64 billion by 2020-21, bringing in $47 million in ATO collection costs. The report will be released next week.

NSW Treasurer Mike Baird has also thrown his support behind lowering the GST threshold. Mr Baird will address Federal treasurers this week with his call to prioritise government action. This follows rejection from Federal Government last year to cut the threshold for international imports to $500.

0 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

[gravityform id="11" title="false" description="false" ajax="true"]
<div class='gf_browser_unknown gform_wrapper fix-om-styling_wrapper' id='gform_wrapper_11' ><div id='gf_11' class='gform_anchor' tabindex='-1'></div><form method='post' enctype='multipart/form-data' target='gform_ajax_frame_11' id='gform_11' class='fix-om-styling' action='/news/australian-online-tax-dream-level-playing-field/#gf_11'> <div class='gform_body'><ul id='gform_fields_11' class='gform_fields top_label form_sublabel_below description_below'><li id='field_11_2' class='gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible' ><label class='gfield_label' for='input_11_2' >Email Address<span class='gfield_required'>*</span></label><div class='ginput_container ginput_container_email'> <input name='input_2' id='input_11_2' type='text' value='' class='large' placeholder='Email' aria-required="true" aria-invalid="false" /> </div></li><li id='field_11_3' class='gfield gfield_contains_required field_sublabel_hidden_label field_description_below hidden_label gfield_visibility_visible' ><label class='gfield_label gfield_label_before_complex' >Name<span class='gfield_required'>*</span></label><div class='ginput_complex ginput_container no_prefix has_first_name no_middle_name has_last_name no_suffix gf_name_has_2 ginput_container_name' id='input_11_3'> <span id='input_11_3_3_container' class='name_first' > <input type='text' name='input_3.3' id='input_11_3_3' value='' aria-label='First name' aria-required="true" aria-invalid="false" placeholder='First Name'/> <label for='input_11_3_3' class='hidden_sub_label screen-reader-text'>First</label> </span> <span id='input_11_3_6_container' class='name_last' > <input type='text' name='input_3.6' id='input_11_3_6' value='' aria-label='Last name' aria-required="true" aria-invalid="false" placeholder='Last Name'/> <label for='input_11_3_6' class='hidden_sub_label screen-reader-text'>Last</label> </span> </div></li><li id='field_11_5' class='gfield gfield_contains_required field_sublabel_below field_description_below hidden_label gfield_visibility_visible' ><label class='gfield_label' for='input_11_5' >Company / Organisation<span class='gfield_required'>*</span></label><div class='ginput_container ginput_container_text'><input name='input_5' id='input_11_5' type='text' value='' class='large' placeholder='Company' aria-required="true" aria-invalid="false" /></div></li><li id='field_11_6' class='gfield gform_hidden field_sublabel_below field_description_below gfield_visibility_visible' ><input name='input_6' id='input_11_6' type='hidden' class='gform_hidden' aria-invalid="false" value='NOT PROVIDED' /></li><li id='field_11_7' class='gfield gform_hidden field_sublabel_below field_description_below gfield_visibility_visible' ><input name='input_7' id='input_11_7' type='hidden' class='gform_hidden' aria-invalid="false" value='NOT PROVIDED' /></li><li id='field_11_8' class='gfield gform_hidden field_sublabel_below field_description_below gfield_visibility_visible' ><input name='input_8' id='input_11_8' type='hidden' class='gform_hidden' aria-invalid="false" value='NOT PROVIDED' /></li><li id='field_11_9' class='gfield gform_validation_container field_sublabel_below field_description_below gfield_visibility_visible' ><label class='gfield_label' for='input_11_9' >Phone</label><div class='ginput_container'><input name='input_9' id='input_11_9' type='text' value='' /></div><div class='gfield_description' id='gfield_description_11_9'>This field is for validation purposes and should be left unchanged.</div></li> </ul></div> <div class='gform_footer top_label'> <button type="submit" class="button-3" id="gform_submit_button_11">SUBSCRIBE</button> <input type='hidden' name='gform_ajax' value='form_id=11&amp;title=&amp;description=&amp;tabindex=0' /> <input type='hidden' class='gform_hidden' name='is_submit_11' value='1' /> <input type='hidden' class='gform_hidden' name='gform_submit' value='11' /> <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' /> <input type='hidden' class='gform_hidden' name='state_11' value='WyJbXSIsIjRjNDYzMzMwNzM3OTFjM2ZlOGZhNjY2ZDA4ZDVlMDcyIl0=' /> <input type='hidden' class='gform_hidden' name='gform_target_page_number_11' id='gform_target_page_number_11' value='0' /> <input type='hidden' class='gform_hidden' name='gform_source_page_number_11' id='gform_source_page_number_11' value='1' /> <input type='hidden' name='gform_field_values' value='' /> </div> </form> </div> <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_11' id='gform_ajax_frame_11' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'></iframe> <script type='text/javascript'>jQuery(document).ready(function($){gformInitSpinner( 11, 'https://mlo34ofws4g4.i.optimole.com/sfLB6KI-p9IYDWSG/w:auto/h:auto/q:auto/https://mail.powerretail.com.au/wp-content/plugins/gravityforms/images/spinner.gif' );jQuery('#gform_ajax_frame_11').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_11');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_11').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){jQuery('#gform_wrapper_11').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_11').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_11').removeClass('gform_validation_error');}setTimeout( function() { /* delay the scroll by 50 milliseconds to fix a bug in chrome */ jQuery(document).scrollTop(jQuery('#gform_wrapper_11').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_11').val();gformInitSpinner( 11, 'https://mlo34ofws4g4.i.optimole.com/sfLB6KI-p9IYDWSG/w:auto/h:auto/q:auto/https://mail.powerretail.com.au/wp-content/plugins/gravityforms/images/spinner.gif' );jQuery(document).trigger('gform_page_loaded', [11, current_page]);window['gf_submitting_11'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}setTimeout(function(){jQuery('#gform_wrapper_11').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_11').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [11]);window['gf_submitting_11'] = false;}, 50);}else{jQuery('#gform_11').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger('gform_post_render', [11, current_page]);} );} );</script><script type='text/javascript'> jQuery(document).bind('gform_post_render', function(event, formId, currentPage){if(formId == 11) {if(typeof Placeholders != 'undefined'){ Placeholders.enable(); }} } );jQuery(document).bind('gform_post_conditional_logic', function(event, formId, fields, isInit){} );</script><script type='text/javascript'> jQuery(document).ready(function(){jQuery(document).trigger('gform_post_render', [11, 1]) } ); </script>