Australia Is Strongly Opposed To Taxes On Cross-Border Online Shopping Orders Below US $1000.

All the time,

The goods and services tax (GST) is only imposed on cross-border online shopping orders valued at more than US $1000, but less than $1000 can be waived.

However, cross-border online shopping has become a common practice in Australia in recent years, leading to the continuous flow of revenue from local retailers to foreign Internet retailers.

Australian local retailers have also asked for a tax on cross-border online shopping orders less than US $1000.

However, industry insiders say the move does not encourage Australians to turn around and buy local products, because the price advantage of overseas goods after tax is still very strong.

On the contrary, this will only lead to price increases, increase consumer spending, and bring greater burden to ordinary families.

In recent reports, it is understood that: under 1000 dollars

Order taxation is bad for consumers because they have to pay higher prices when shopping from overseas websites.

These products include books, cameras, perfume, electric sword (Star Wars) and so on, but even if the consumption tax is levied, the prices of these products are still cheaper than those of Australian domestic retailers.

In the summer of 2014, the Abbott administration proposed a levy on goods and services, which should be included in the new tax measures that might be adopted.

The chancellor of the exchequer, Joe Hockey, will announce the consequences of tax discussions recently.

However, the senior adviser of Institute of Public Affairs strongly opposed the tax reform of the government. He believed that the government should not adopt the method of broadening the tax base.

Tax relief should be continued for cross-border online shopping orders below US $1000.

Dr Novak, of the Australian Institute of Public Affairs (IPA), said: "this new tax reform proposal is useless for restricting the advantages of cross-border online shopping.

Even abolishing tariff free measures, from overseas

It is cheaper to buy products than Australian retail stores. "

According to the IPA survey, a "Fred Hopdide Down" brand beer bottle is priced at $29.95 in Australian retail stores, and even from the overseas website, the price is still $15.47 even after the goods and services tax is charged.

For example, Nikon Coolpix P600 digital camera sells for up to 508 US dollars in Australian retail stores, while the purchase price from overseas websites plus GST after tax is only $399, and the spread is still very large, up to 108 US dollars.

For example, the purchase of the missing girl from the Australian bookstore Dymocks is priced at $25.98, but the purchase from overseas website "bookdepository.com" is only $13.94.

If the book is taxed, the price will only rise from $13.94 to $15.33, which is still 41% lower than the Dymocks price. This price advantage is still very obvious.

Therefore, taxation is useless. It will only be harmful to consumers and increase consumer spending.

Moreover, taxation is not easy to implement. The tax cost of expanding the tax base of goods and services tax will be higher than that of the tax itself, which will do more harm than good.

The survey conducted by the The Productivity Commission In 2010-2011 years has found that the threshold for the taxation of low value products will be reduced to $100, although it can bring 495 million dollars in taxes to the government. At the same time, it also allows the government to pay 1 billion 200 million dollars for tax purposes, which is much higher than the cost.

Through the survey, it is easy to find that expanding the tax base will only increase the cost of living for Australian consumers, without any other advantages.

IPA believes that the government should reduce the high labor costs of Australian local retailers by solving the problem of fines interest rates and the reform of labour relations.

Reducing costs and improving the price competitiveness of local retailers is the correct solution.

If the government really wants to help local retailers, it should liberate the market and exclude the protective proposals against consumers.

Opponents of the proposal argue that the taxation of overseas online shopping products under US $1000 is also a trade protectionism act. Expanding the tax base is not a real reform.

25% of Australia's online shopping products come from overseas websites.

Australian retailers believe that the exemption of GST from overseas Internet retailers is unfair to taxpayers, domestic retailers and retail practitioners. This situation poses great harm to the local retail industry. Australian states should take measures to change this situation, because it can bring more revenue to the States.

The organisation for economic co operation and development (OECD) also urges the Australian government to expand the tax base or impose a goods and services tax.

OECD even said that even a 10% tax rate would be lower than international standards.

However, the Australian finance minister refused to comment on the matter and said OECD did not understand the overall economic situation of Australia.

Australian consumers do not buy OECD accounts.

Australian consumers believe that if the government wants to levy 10% of the goods and services tax, other corresponding tax reduction measures should be introduced to compensate the middle and low income families, because many families are facing a lot of pressure of expenditure.

If the government wants to raise taxes, please let the Australians vote.

Australian Mr Hockey said: "the problem now is not just increasing the goods and services tax, but also what the Australian can get from it.

If we do not get personal income tax cuts, corporate tax cuts or other benefits, then it is not worth it. "