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online for free sales plan raises concerns,[link widoczny dla zalogowanych]
Myer leader Bernie Brookes said yesterday the mall planned to import goods bought on the internet and worth less than the $1000 GST-free threshold to allow customers to prevent make payment on tax.
From February,[link widoczny dla zalogowanych], Myer's customers having its website will be able to buy about 1000 goods priced under the threshold since they're sent from China to the customer.
But the Australian Taxation Institute's senior tax lawyer Robert Jeremenko said the federal government would "rightly" part of if Myer was seen to be abusing the tax system,[link widoczny dla zalogowanych].
"The idea is you set a limit of $1000 so there isn't this huge compliance nightmare for individuals to try and collect GST on relatively small amounts,[link widoczny dla zalogowanych]," he said.
And Mr Jeremenko said retailers required to view the GST-free threshold was for consumers, not big business.
Assistant Federal Treasurer Bill Shorten last night told BusinessDaily: "We are considering ensuring we have the settings right and (are) cracking recorded on people who rort the system,[link widoczny dla zalogowanych], who generate multiple batches of goods,[link widoczny dla zalogowanych], each worth $999, just to circumvent the threshold."
Mr Shorten also said the federal government had no plans to put a GST on online shopping for goods under $1000,[link widoczny dla zalogowanych].
The strong Australian dollar has seen billions in sales revenue remain offshore as shoppers search on the internet as well as their new-found buying capacity to obtain the best deal.
Last week,[link widoczny dla zalogowanych], Just Group chief Solomon Lew and Harvey Norman chairman Gerry Harvey spoke out against the GST-free threshold. I was told that it was causing major revenue leakages and called on the government to put an end to it.
David Jones boss Paul Zahra threw his support behind his retail rival yesterday, saying that Australian retailers should be permitted to sell goods online GST-free.
"I do view it like a concern," Mr Zahra said. "I'm unhappy that Australian retailers are being put in a disadvantage."
Myer's products is going to be imported from a "hub" in Shenzhen in southern China and sent to Australia using China Post,[link widoczny dla zalogowanych].
"We can't compete with the overseas retailers who can sell many 10 per cent cheaper,[link widoczny dla zalogowanych]," Mr Brookes said.
2ndeffort Posted at 1:52 AM December 05, 2010
Whether or not it is greedy shopping centre rents, small population bases, unfair taxes or dishonest retailers, the situation is all the same to me the customer. I cannot see any reason to pay way within the odds for something at a shopping centre to ensure that (insert retailer's name) can conserve a local (uncompetitive) shop.
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