ashleyknowles

As a small business owner, I’ve witnessed first hand the effects of overseas online retailers. I have lost numerous sales because an overseas dealer can offer the same product to customers for around 10% less.

One of the products I used to sell was 20% off cost price to me, including GST. An overseas retailer for the same product, would buy it from the Australian manufacturer at the same 20% cost price – BUT they would also be exempt from GST, so a further 10% (or there abouts) discount… Consider that, and you see that overseas retailers are able to sell AUSTRALIAN MADE products cheaper then legitimate Australian dealers of the same product!!! What a joke.

It angers me that the Australian public have backlashed against the retailers for their suggestion of imposing GST on imported items, or by removing GST on items under $1000 sold by retailers in Australia (the latter idea seems to have been completely disregarded, even though it would give the impression that locally sold items are cheaper).

I’m all for a bargain, but at what cost? Australian retail businesses are losing out to overseas retailers through a very simple loophole.

In addition to my previous example, imported goods sold by Australian retailers are also affected. When a retailer orders in over $1000 of stock, they must pay 10% GST plus a duty tax, on top of the shipment’s value. Even if the individual items being imported are worth less then $1000 each, the taxes are paid on the value of the entire shipment… Consider a regular shopper, who purchases only one of these items, under $1000, and they won’t pay a single cent in GST or duty.

News.com.au – Shoppers: 1, Retailers: 0 in online shopping battle