Whingeing retail billionaires and the 10% GST

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Whingeing retail billionaires and the 10% GST

I must have taken an extra dose of grumpy old man pills this morning, as I just
read:
http://www.smh.com.au/business/fury-at-online-gst-loophole-20101219-191zt.html

Fury at online GST loophole
Mathew Murphy
December 20, 2010

RETAIL heavyweights have attacked a government inquiry into the industry as a
further sign of inaction, saying GST and
duty loopholes favouring overseas retailers are ''lunacy''.

The retail billionaires Solomon Lew and Gerry Harvey yesterday revealed they are
considering mounting a campaign against
the government over what they claim is an uneven playing field. Under existing
tax arrangements, overseas retailers are
able to offer purchases under $1000 online without attaching GST.

========================

Well, in my "Fury" of reading what these billionaires are complaining about, I
decided to shoot off a letter to the
editor of the herald-sun Melbourne this morning. I do ramble on about a few
loosely linked subjects that have been
frustrating me recently, but my anger is directed mainly at retail billionaire
Gerry Harvey, and this 10% GST.

============
To heraldsun.com.au

Gerry Harvey (Harvey Norman) says he is loosing money because people are
shopping on line from overseas, in order to
save the 10% GST. Wrong Gerry. It is not about the 10%. It is about greed. Why
pay sometimes two to three times the
price here, when you can get it from the US or China, for a third of the price.
Retailers simply have to be more
competitive.

And Australia Post is going broke because ordinary mail is being overtaken by
email. What about all the packages that
are being delivered from overseas that Gerry Harvey keeps telling us about. You
can't have it both ways.

And why do I have to line up in a queue to post a yellow bag that won't fit into
the toy timber yellow box out the front
of the Post Office. I feel like getting at it with a small carpenters saw, and
cutting the slot out so that it will fit
more than just a letter.

On the 22nd of November, Australia Post hit us with a $9 security surcharge for
packages to the US that weight over 453
grams. When asked what they do for this fee, they won't tell us, because it's a
secret.

Don McKenzie
Tullamarine.

======================



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Don McKenzie

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Re: Whingeing retail billionaires and the 10% GST
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Online shops have a number of trading advantages, absence of GST is just
one more for some. People who want a more competitive Australia can't
have it both ways.



Re: Whingeing retail billionaires and the 10% GST
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These guys must really be getting desperate. I don't think the overseas
online shop sales would be that large anyway.

How many times has somebody said: hay, I bought a $1,000 PC or TV from a
online shop in Hong Kong and saved a shit load ?








Re: Whingeing retail billionaires and the 10% GST
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Try getting your facts straight before whinging yourself.
AP is making handsome profits from their hundreds of business
lines.

Re: Whingeing retail billionaires and the 10% GST
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Sorry Clifford, I promise I'll try and be more accurate in future.
(I'll just slap myself around a little bit here)

They claim they are loosing money on their letter posting section, and will be
closing post offices after Christmas:
http://www.dailytelegraph.com.au/business/deluge-of-parcels-fail-to-stop-postal-losses/story-e6frez7r-1225973661545

Is that better?

It will mean longer queues for any transaction you want to do in a post office,
but yes, they will still be making a profit.

==============

And on the end of the article I referred to above:
"The company (APO) has taken steps to boost parcel delivery by partnering eBay
to simplify the packing and posting of
items. Other freight companies have also experienced a significant increase in
the number of parcels coming into
Australia in the past few months."

So, who is profiting from the extra packages coming into the country? They don't
do it for love, do they?

Cheers Don...

=============

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Don McKenzie

Site Map:            http://www.dontronics.com/sitemap
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Re: Whingeing retail billionaires and the 10% GST
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Yes. That doesn't mean they actually *are* losing money though.
It could just be a play to get postage rates increased. Impossible
to know.

In general, I'm supportive of your main gripe. Large retailers
have massive economies of scale wrt transport compared to individual
orders, but that has never been enough - they've always been happy
to rape both the Australian populace and foreign producers. Especially
the clothing industry, which has markups of up to 100x.

If Internet ordering forces them to derive their profits from their
actual operations, instead of from their ongoing abuse of market power,
that's an excellent thing in my book. Free trade working correctly.

After these excesses start to be equalised, they might have a point
about GST exemption for private imports (although the economies
mentioned, and the convenience of local display and backup, should
be enough for them to still run at handsome margins). Until then
however, definitely not.

Clifford Heath.

Re: Whingeing retail billionaires and the 10% GST
On Mon, 20 Dec 2010 16:13:43 +1100, Clifford Heath

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My son just ordered some fairly schmick leathers for his bike-riding.
Was over $1200 here in Oz, he's getting the absolutely identical
product from the USA for a tad over $500 including shipping.

Re: Whingeing retail billionaires and the 10% GST
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I wonder where the saving is made if a locally made product or is it an
import made in china ?

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Re: Whingeing retail billionaires and the 10% GST
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US debt levels are no secret

Re: Whingeing retail billionaires and the 10% GST

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 My attitude on this has been the same for several years.  Bring it on.
 I've routinely brought in goods from overseas WITH GST paid, and still
have it significantly cheaper than buying locally.

 If they think the government mandated 10% is the difference between a
viable business or a closed shop, they crazier than I am.

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 That's what they're claiming (though it appears not to be the case) and
regardless, it's a case of boo bloody hoo.

 And the motor vehicle killed off the horse-drawn carriage too.  And of
the half dozen or so people who are crying about that are probably doing
it from their climate controlled modern motor vehicles.  Hypocrites.
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