GST on imported goods under $1k

[KGB]

The free shit army is headed towards the voting booth and you're stuffed.

^this.

But, we're all buying from Ikea, Microsoft, Aldi, Apple, BMW, P etc who are not paying corporate tax in Australia at anywhere near the real level that Australian companies are, transfer pricing and license fees are their worm holes.  I told you so.   Free market my A$$.

[TrevMcRev]

 

Lots of reasons why stuff from overseas is cheaper, esp on <$1000 imports

• No gst paid here = -10%
• No duty paid here = - 0-20%
• No import fees/charges = 2-5%
• Sometimes no local taxes paid in the purchasing country either, eg no VAT = - 10-20%  So they're buying even cheaper than someone in that country can,
• Lower wages for basic jobs like warehouse order picking
• Lower cost to buy/rent warehouse space
• 10x market size = high volume/lower margin

I'm in online retail...so I'm with Gerry on this one!

[grantmr]

Chinese gov also subsidises freight. What's your site trev?

[LeeM]

  Even with the GST added to goods under a grand, it will still be cheaper than most Australian retailers

[Redracn]

 

Lots of reasons why stuff from overseas is cheaper, esp on <$1000 imports

• No gst paid here = -10%
• No duty paid here = - 0-20%
• No import fees/charges = 2-5%
• Sometimes no local taxes paid in the purchasing country either, eg no VAT = - 10-20%  So they're buying even cheaper than someone in that country can,
• Lower wages for basic jobs like warehouse order picking
• Lower cost to buy/rent warehouse space
• 10x market size = high volume/lower margin

I'm in online retail...so I'm with Gerry on this one!

What about freight of individual items which can be a significant part of <$1K when compared to bulk container rates and can eaisly offset all the other charges listed especially at the lower end of the price range.

The last 3 points are the real issue but Gerry has no reason to complain about the last pointas his volume should be hight enought to ensure his fixed costs are a very small %. 

[TrevMcRev]

What about freight of individual items which can be a significant part of <$1K when compared to bulk container rates and can eaisly offset all the other charges listed especially at the lower end of the price range.

The last 3 points are the real issue but Gerry has no reason to complain about the last pointas his volume should be hight enought to ensure his fixed costs are a very small %. 

There'll always be lots of variance across different businesses, but in my case it's where lot of items that are high $ but small size, $700 but fits in the palm of your hand - so cheap to ship.  And in a niche, so not the volume of mainstream consumer goods.

It can definitely work out in some cases where the wholesale price from a manufacturer Europe is the same for me as a Euro retailer, but the Euro retailer can sell a product at retail (large market/low margin/high volume), with no VAT on export, and ship one at a time here with high volume small parcel shippers like UPS or Fedex to individual consumers - all for less that I can import a larger number of and pay all of the above associated costs on that they don't.

This is where it could make a difference to the many SMEs - which is more important than a few Gerrys.

[Redracn]

There'll always be lots of variance across different businesses, but in my case it's where lot of items that are high $ but small size, $700 but fits in the palm of your hand - so cheap to ship.  And in a niche, so not the volume of mainstream consumer goods.

It can definitely work out in some cases where the wholesale price from a manufacturer Europe is the same for me as a Euro retailer, but the Euro retailer can sell a product at retail (large market/low margin/high volume), with no VAT on export, and ship one at a time here with high volume small parcel shippers like UPS or Fedex to individual consumers - all for less that I can import a larger number of and pay all of the above associated costs on that they don't.

This is where it could make a difference to the many SMEs - which is more important than a few Gerrys.

Yep like I said previously small business could be at a disadvantage but Gerry is not one and should have the buying and transport clout to not be to adversely affected. I.e who can say they have imported a TV or dishwasher.