Lowdown on GST change
From Sunday, taxes will be applied to low-value imported goods but the effects are a mixed bag. reports. GST is about to kick in for all low-value would be a commercial decision the introduction of GST to digital services imported goods, but what changes will whether to raise prices on July 1 and like Netflix last year, would be a you see when you head online to shop some may include the GST in the advertised boost to the broader retail industry. on Sunday, July 1? price, while others may show But Dr Harrigan said he did not
UWA Business School senior marketing it during checkout. think the move would change consumers’ lecturer Paul Harrigan said people Australian Retailers Association executive purchasing habits and thought might see the tax straight away on director Russell Zimmerman it would have a negligible impact on some sites but not on others and there said the changes would put local retailers local businesses. was some uncertainty around ensuring on a level playing field. “Not only would I suggest that consumers compliance to the new law. “We’re hoping this tax fairness will typically save more dollars by
“I would suggest that this will be give a much-needed boost to the industry,” shopping online than this tax will cost very complicated,” he said. he said. them, but online shopping is now a
An ATO spokeswoman said for businesses Mr Zimmerman said the move to learned behaviour for consumers,” he earning more than $75,000, it apply GST to tangible products, such as said.