Low­down on GST change

From Sun­day, taxes will be ap­plied to low-value im­ported goods but the ef­fects are a mixed bag.

Stirling Times - - Mid-Year Adjustment - JES­SICA WARRINER re­ports.

GST is about to kick in for all low-value im­ported goods, but what changes will you see when you head on­line to shop on Sun­day, July 1?

UWA Busi­ness School se­nior mar­ket­ing lec­turer Paul Har­ri­gan said peo­ple might see the tax straight away on some sites but not on others and there was some un­cer­tainty around en­sur­ing com­pli­ance to the new law.

“I would sug­gest that this will be very com­pli­cated,” he said.

An ATO spokes­woman said for busi­nesses earn­ing more than $75,000, it would be a com­mer­cial de­ci­sion whether to raise prices on July 1 and some may in­clude the GST in the ad­ver­tised price, while others may show it dur­ing check­out.

Aus­tralian Re­tail­ers As­so­ci­a­tion ex­ec­u­tive direc­tor Rus­sell Zim­mer­man said the changes would put lo­cal re­tail­ers on a level play­ing field.

“We’re hop­ing this tax fair­ness will give a much-needed boost to the in­dus­try,” he said.

Mr Zim­mer­man said the move to ap­ply GST to tan­gi­ble prod­ucts, such as the in­tro­duc­tion of GST to dig­i­tal ser­vices like Net­flix last year, would be a boost to the broader re­tail in­dus­try.

But Dr Har­ri­gan said he did not think the move would change con­sumers’ pur­chas­ing habits and thought it would have a neg­li­gi­ble im­pact on lo­cal busi­nesses.

“Not only would I sug­gest that con­sumers typ­i­cally save more dol­lars by shop­ping on­line than this tax will cost them, but on­line shop­ping is now a learned be­hav­iour for con­sumers,” he said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.