Amid the frustration in Australia over the government's decision to not lower the GST free threshold on imports, Myer announces plan to launch a China based website (available as soon as February), where Australians can shop and enjoy paying no GST.
Overseas online sales is worth around $20billion, and, as mentioned before, GST is not imposed for sales under AUD1,000. This is quite something given our strong AUD against the USD and EUR.
But it's not just GST, it is also custom's duty. If the government imposes GST at a lower threshold, will this also be the same for custom's duty? It is a combination of both of these that makes shopping online so attractive, particularly as US and Europe stores hold increasing number of sales to try and make money in difficult times.
This is a difficult time also for Australian retailers and I feel for them as the average Aussie household spends less and looks to save more. With interest rates set to rise again in early 2011 and increased living costs consumers rightly so are looking for the best possible bargain for their dollar.
It is likely only a matter of time before the government does lower the GST threshold on imports.
Sunglasses for less. My favourite store Giarre
All Australian businesses need to write to the ATO and request that they should be exempt from collecting the GST. Just follow the Gov's lead on that. We can level the playing field ourselves.
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