NEWS.COM Article
An enquiry panel has advised the government that it can force online stores to apply GST to sales.
The retail sector is overjoyed as they have somehow come to the conclusion that this is a major reason why online prices are cheaper and people prefer to shop online. I ask, what kind of cheese cake chewing franchise CEO would come to such a ridiculous conclusion? Do they really think that the difference between online and in store prices is on average 10%? What bum biscuits!!!
This LED GU10 light bulb is $5 delivered to your door from Ebay. The closest match to this from Bunning’s is $25 (or $10 on special sale). So if we ad GST to the ebay price it is now $5.50. Now I don't need to tell everyone why GST is not the problem to the retail industries woes.
If the retail industry wants to win back shoppers, then it is really simple. First they have to drop the ridiculous mark ups they have on their merchandise. People in America, England, France, etc pay significantly less than we do after accounting for the exchange rate and general cost of living. The second thing they need to do is force their suppliers to match the online price for goods.
Big companies have been telling us for years (since the 60's at least) that globalization and capitalist open markets are beneficial for everyone because they promote "Healthy" competition. Now they have "healthy" competition and are losing, they start whinging. I say play by your own rules, if you can't compete then you are either not as good as the competition or you are charging too much.
I would not be surprised to find that it costs more to extract GST from overseas online sales than the GST revenue itself. That is if it is even possible to tax an overseas company that has no office or presence in Australia for tax purposes.
The only thing online shopping has done, is allow us to short cut the very expensive (and greedy) middlemen in the Australian retail sector, We are now beginning to get merchandise at the same price everyone else around the world does.
I say, force GST onto everything online, the extra 50c per item will at least create more Australian jobs as the ATO will have to create a new department to manage online sales taxes.
It's not the GST that's the problem, Shaking my head at them with eys rolling this time...