GST on low value imported goods

[D4D]

This is going to be interesting...
https://www.ato.gov.au/Business/International-tax-for-business/GST-on-low-value-imported-goods/

[duggie]

I don't know how they are going to police this .

I reckon that for some sellers they will just increase the postage price , and get the item free .

EG : instead of item for $2 and free postage they will go with Postage $2 and item free.

[trinityalyce]

I have no idea how they manage to sell certain things so cheap (well, OK I do, but that's another argument for another time). Screen protectors for $1 with free postage from China, etc. I do understand that it isn't good for Australian businesses, and I'm all for supporting the local guy... But when you CAN buy things so cheap from overseas, vs spent 10+ times as much to buy the exact same product from an Australian business with a shop front here, paying staff wages, etc... Well... 🤨 I'm the first person to argue "you get what you pay for", but sometimes that $1 screen protector is all you need...

Has anyone heard anything authoritative on how they are planning to enforce it for the likes of Ebay sellers and buyers? I've seen so many dodgy tricks - sellers marking items as "gift" on customs declarations, sellers listing their Ebay location as Australia even though they're offshore (and the item comes direct from China/etc.), and so forth. How are they going to penalise non-compliance?

[plusnq]

I don't know how they are going to police this .

I reckon that for some sellers they will just increase the postage price , and get the item free .

EG : instead of item for $2 and free postage they will go with Postage $2 and item free.

I wonder if they have thought of that. It’s going to be raised at the seller or platform (eg ebay) level. They have always said it is uneconomic to do but they must be finding it hard to avoid the screaming from local businesses.

[trinityalyce]

I wonder if they have thought of that. It’s going to be raised at the seller or platform (eg ebay) level. They have always said it is uneconomic to do but they must be finding it hard to avoid the screaming from local businesses.

Is it, perhaps, just that? For the sake of appearances? "Oh, see, we're doing something now, you can all be quiet..." I guess time will tell.

[Pete79]

I have no idea how they manage to sell certain things so cheap (well, OK I do, but that's another argument for another time). Screen protectors for $1 with free postage from China, etc.

So now to purchase your $1 screen protector you’ll need to add 10% GST, plus the new $5 postage fee for items under $1000.00.
So you’re up to $6.10 at this point.
Then you’ll have to add the Australia tax, giving a new total price of $12.78

Unless that item was made by an Australian company and is usually exported to the USA, in which case you have to pay the Australian Repatriation Business (ARB) Tax and the total value for that $1 item will now be somewhere around $47.90

[loanrangie]

I have no idea how they manage to sell certain things so cheap (well, OK I do, but that's another argument for another time). Screen protectors for $1 with free postage from China, etc. I do understand that it isn't good for Australian businesses, and I'm all for supporting the local guy... But when you CAN buy things so cheap from overseas, vs spent 10+ times as much to buy the exact same product from an Australian business with a shop front here, paying staff wages, etc... Well... 🤨 I'm the first person to argue "you get what you pay for", but sometimes that $1 screen protector is all you need...

Has anyone heard anything authoritative on how they are planning to enforce it for the likes of Ebay sellers and buyers? I've seen so many dodgy tricks - sellers marking items as "gift" on customs declarations, sellers listing their Ebay location as Australia even though they're offshore (and the item comes direct from China/etc.), and so forth. How are they going to penalise non-compliance?

I work in imports/ customs clearance and the reason this didnt start on 1st of Jan is because the ATO and Customs have no idea how to collect the GST from OS sellers.

[Bird]

I work in imports/ customs clearance and the reason this didnt start on 1st of Jan is because the ATO and Customs have no idea how to collect the GST from OS sellers.

do they know how to now?

[loanrangie]

do they know how to now?

 No, still working on it.

[corndog]

Will an overseas business register with the ATO, collect and pay their money to them. I'm thinking they won't be bothered. Do I have to pay the tax on a $50 item being brought into the country when I'm not responsible for paying the tax to the ATO, I don't think so. Sound like a good system, I don't think so.

[#jonesy]

They will probably hit eBay. Then I’ll go through eBay.com instead of com.au

Buying that $1 screen protector at an Australian shop is just giving someone $9 for getting it here before you wanted it, rather than wait the few days, weeks or months. Hardly affecting Australian jobs in my books.

I do like to buy from an Australian shop but sometimes it just doesn’t add up. I’ve bought 3 rolls of wallpaper from the UK. Postage doubled the price, but it still came in at less than the price from the local shop for 1 roll. ($100 a roll). It arrived quicker than the local shop could get from Sydney as well. I was happy to pay a bit more for local, but couldn’t justify paying an additional $200 for the Australian worker.

[Pottsy]

I,m not sure how the logistics of this will work as GST is collected by the ATO at the manufacturer, wholesaler, retailer level, not collected from the purchaser. Not sure how the ATO has any jurisdiction over overseas suppliers.
Can't imagine Billy the Goose in the USA paying our government GST or tariffs because he sells 20 widgets to Aussie's a year.

[tryagain]

The issue is with the GST is the Gov forces businesses to do all the work of collecting and reporting and the ATO just gets to sit back and watch the $$$ pour in, not so easy to make oversea's business do it as they aren't subject to Aus law and the Gov don't really want to have to do the work, especially on small purchases as it would cost more to do than it would bring in, hence why there is the exemption there for small purchases there in the first place.

[HKB Electronics]

I recall from memory that the government sent someone overseas a while back to discuss this with various governments,
I believe it was the intention that the overseas companies charge the GST and it is forwarded to the Australian ATO.

If this fails to work then I imagine customs would have to put something in place, from EBay's perspective the government
could simply tell Ebay they have to collect the tax whenever an Australian resident orders anything from overseas.

To me this is just another form of taxation the goverment is coming up with to increase their cash flow, it certainly won't
go back into Australian business in any way shape or form.

[Bird]

No, still working on it.

so... ummmmm.... WTF?

[corndog]

To me this is just another form of taxation the goverment is coming up with to increase their cash flow, it certainly won't
go back into Australian business in any way shape or form.

You hit the nail on the head there.

[Kangaron]

To me this is just another form of taxation the goverment is coming up with to increase their cash flow, it certainly won't
go back into Australian business in any way shape or form.

They will need it from what I have seen so far of the NDIS

[McGirr]

I do like to buy from an Australian shop but sometimes it just doesn’t add up. I’ve bought 3 rolls of wallpaper from the UK. Postage doubled the price, but it still came in at less than the price from the local shop for 1 roll. ($100 a roll). It arrived quicker than the local shop could get from Sydney as well. I was happy to pay a bit more for local, but couldn’t justify paying an additional $200 for the Australian worker.

It will be interesting to see how the mail will be checked.
On another note.
I always find it amusing we all bag import companies especially camper manufacturers and say buy Australain, yet we all will buy from overseas because it's cheaper. Not having ago but always find it funny.

Mark

[richo9923]

So if my family in the UK want to send me a gift for my birthday, will I have to $5 to receive that gift?

[Cruiser 105Tvan]

Wouldn't be surprised if the ATO convince 'em to make people pay a fee to p/up. postage from the P.O. or add to Courier cost.
If delivered direct.
All the Ebay Labels have a 'declared value of product within' spot on them.

[#jonesy]

It will be interesting to see how the mail will be checked.
On another note.
I always find it amusing we all bag import companies especially camper manufacturers and say buy Australain, yet we all will buy from overseas because it's cheaper. Not having ago but always find it funny.

Mark

No offence taken. My example was for the exact same product, which is made in the UK and not a “same same but different” copy

[Bird]

....  yet we all will buy from overseas because it's cheaper.

... and because **** all is made in Australia anymore.

[Cruiser 105Tvan]

... and because **** all is made in Australia anymore.

We have a winner.

[tryagain]

I recall from memory that the government sent someone overseas a while back to discuss this with various governments,
I believe it was the intention that the overseas companies charge the GST and it is forwarded to the Australian ATO.

If this fails to work then I imagine customs would have to put something in place, from EBay's perspective the government
could simply tell Ebay they have to collect the tax whenever an Australian resident orders anything from overseas.

To me this is just another form of taxation the goverment is coming up with to increase their cash flow, it certainly won't
go back into Australian business in any way shape or form.

It just another tax, no doubt about that. I think the main issue with getting overseas companies to do it is what if they don't, how will the government penalise them, ban them from sending things to Australia? how will they be able to tell what comes from them though if they keep sending things unmarked.
 If they somehow got a method that worked, then it just wouldn't be worth a lot of smaller overseas businesses jumping through the hoops and  they would just stop selling to Australia, this would go down like a lead balloon in the electorate. I personally can't see it happening anytime soon.

[corndog]

How does it work if I buy something from overseas through an overseas site, have it shipped to a re-shipping company and have it sent here by them. I haven't bought it from them. No tax on shipping costs. Therefore no tax paid.