TwoHeadsTas Posted 2July, 2018 Report Share Posted 2July, 2018 OK, just wondering what the general understanding is of the 1/7/18 GST changes for < $1000 imports. As I interpret it, if I import a $700 item from Amazon in the US, or from Fishpond etc who ship from O/seas, then I will now pay 10% GST because these companies have a permanent establishment in Oz. However, if I buy from, say, Pelican or EuroFCP, I wouldn't pay GST unless the value is >$1000, because they don't have establishments in Australia. Does this sound right?? Link to comment Share on other sites More sharing options...
sleazius Posted 2July, 2018 Report Share Posted 2July, 2018 No, its my understanding that all purchases are going to be stopped at the border and GST applied. Its just if the business does more than $75k in revenue a year then they need to collect the GST at the point of sale. Package forwarders were the first businesses that were targeted to comply with the ATO, so there is no way around it. Its currently unclear how gifts are going to be treated though. This is a very contentious issue in Pinball circles because all of the parts come from the US. Link to comment Share on other sites More sharing options...
Coastr Posted 2July, 2018 Report Share Posted 2July, 2018 How is the ato going to get compliance with a company with no Aus operations? Why would, say, Pelican parts, care what the ato thinks? Link to comment Share on other sites More sharing options...
Ozvino Posted 2July, 2018 Report Share Posted 2July, 2018 5 hours ago, Coastr said: How is the ato going to get compliance with a company with no Aus operations? Why would, say, Pelican parts, care what the ato thinks? They put the onus on the freight company that picks it up at the border - expect freight costs to increase to cover this Link to comment Share on other sites More sharing options...
xitsurf Posted 2July, 2018 Report Share Posted 2July, 2018 If you spend over $1000 you still pay import duties/taxes. and GST, thats different again. My last over 1000 purchase added about 30-35% to final value. it was about 300 bucks to the 1000. Still best to keep your order under $1000 if possible. The import duty cut off of $1000 does not include freight value . With the new under $1000 ....If you run a business and import is for that you can claim the gst back. I think you would pay gst on the freight as well. Link to comment Share on other sites More sharing options...
MFX Posted 2July, 2018 Report Share Posted 2July, 2018 I recently ordered a bunch of parts for my Beetle from the UK, around $2200 worth, plus about $200 shipping. I stupidly forgot about the $1000 cap as there were 22 items so I could have easily made 3 orders. Once it arrived here the Freight company rang me and informed me that I had to pay GST and other duties totalling about $550. That is a big percentage of the total considering I didn't realise I had any more to pay. I am scared of what they are going to try to charge me to bring my engine back in... Link to comment Share on other sites More sharing options...
symsy Posted 2July, 2018 Report Share Posted 2July, 2018 That dodgy type 2 vw motor mate - 3k - $300 GST Link to comment Share on other sites More sharing options...
D2000 Posted 2July, 2018 Report Share Posted 2July, 2018 You also pay gst on free freight. They work out a notional freight charge and charge you based on that Link to comment Share on other sites More sharing options...
xitsurf Posted 3July, 2018 Report Share Posted 3July, 2018 41 minutes ago, symsy said: That dodgy type 2 vw motor mate - 3k - $300 GST plus import duty,( customs duty 5% of total), gst on the freight component of getting it here, and additionall fees if a customs broker involved. if airfreight you also pay a processing charge. When i buy now i split it into lots less than $1000, avoids the customs duty, and those extra fees mentioned. From now on just allow the 10% on your below $1000 purchases. Link to comment Share on other sites More sharing options...
Fishcop Posted 3July, 2018 Report Share Posted 3July, 2018 This along with the mooted change to cash sales rules ($2-5k from $10k) heralds the New World Order folks... I forecast online classes in 'Self Importing to Australia'. I've done it a couple of times for gearboxes and engines, it's complicated but you'll see the very large savings you pick up not putting it through a generic import code like a freight company and supporting their profits. Eventually these companies will cry like Harvey Norman and the government will lock down self imports too. Link to comment Share on other sites More sharing options...
Coastr Posted 3July, 2018 Report Share Posted 3July, 2018 Taxing Australia into prosperity - will there ever be an Australian government with a clue? Link to comment Share on other sites More sharing options...
MFX Posted 3July, 2018 Report Share Posted 3July, 2018 2 hours ago, symsy said: That dodgy type 2 vw motor mate - 3k - $300 GST The thing is that I am not buying it over there, I just sent it over and am bringing it back. Link to comment Share on other sites More sharing options...
Dalai Posted 3July, 2018 Report Share Posted 3July, 2018 22 minutes ago, MFX said: The thing is that I am not buying it over there, I just sent it over and am bringing it back. When the nearest service centre to work on my bicycle SRM power meters was in NZ, we were always told to list the item as "repair / service" to avoid being charged on its return to Australia. Not sure if that would work for something like an engine? Perhaps make sure you have a copy of the service slip showing it being sent to the US in case you have to argue your point? Link to comment Share on other sites More sharing options...
Fishcop Posted 3July, 2018 Report Share Posted 3July, 2018 42 minutes ago, MFX said: The thing is that I am not buying it over there, I just sent it over and am bringing it back. 17 minutes ago, Dalai said: When the nearest service centre to work on my bicycle SRM power meters was in NZ, we were always told to list the item as "repair / service" to avoid being charged on its return to Australia. Not sure if that would work for something like an engine? Perhaps make sure you have a copy of the service slip showing it being sent to the US in case you have to argue your point? I did this a few years ago when I sent my gauges off to North Hollywood Speedos. I photographed and documented serial numbers as I knew the repairs would likely run more than $1k Aussie. I never ended up having an issue, but I understood at the time that could be charged GST for the 'service' and parts, as well as shipping inbound. I suspect you're fine if you can demonstrate the base "goods" were not actually purchased O/S. I think we'll all be looking for that special friend living in the States to drop ship purchases to and have them repackage certain items... Heck I can even see it being cheaper to travel personally to pick up certain things and bring back in cabin baggage! Though ask me about the two hollow torsion bars strapped side by side I stashed in my luggage when I came through customs Link to comment Share on other sites More sharing options...
tazzieman Posted 3July, 2018 Report Share Posted 3July, 2018 1 hour ago, Fishcop said: Though ask me about the two hollow torsion bars strapped side by side I stashed in my luggage when I came through customs "Relay batons" Link to comment Share on other sites More sharing options...
Ozvino Posted 3July, 2018 Report Share Posted 3July, 2018 3 hours ago, MFX said: The thing is that I am not buying it over there, I just sent it over and am bringing it back. you will likely get taxed on the improved value of the asset - so if the motor you sent had a value of $5k and rebuilt it has a value of $15k, they will tax you on the $10k. Suggest start shopping around freight forwarders for assistance. Have you registered your web facing business under an ABN? You might want to think about that if you havent Link to comment Share on other sites More sharing options...
MFX Posted 3July, 2018 Report Share Posted 3July, 2018 11 minutes ago, Ozvino said: you will likely get taxed on the improved value of the asset - so if the motor you sent had a value of $5k and rebuilt it has a value of $15k, they will tax you on the $10k. Suggest start shopping around freight forwarders for assistance. Have you registered your web facing business under an ABN? You might want to think about that if you havent I currently run it just under my name, as it doesn't generate much in the way of income yet. The best thing I get out of it is being able to offset some of the costs of my camera equipment, etc. Link to comment Share on other sites More sharing options...
Raven Posted 3July, 2018 Report Share Posted 3July, 2018 5 hours ago, Coastr said: Taxing Australia into prosperity - will there ever be an Australian government with a clue? Taxing Australians into poverty ...........Not like they don,t get enough as it is I often like to refer to Government as disorganized crime ,,,they really are the bottom of the barrel Link to comment Share on other sites More sharing options...
Fishcop Posted 3July, 2018 Report Share Posted 3July, 2018 1 hour ago, tazzieman said: "Relay batons" Ha ha. Honestly, they thought they were on to a winner! The disappointment was palpable Link to comment Share on other sites More sharing options...
Ozvino Posted 3July, 2018 Report Share Posted 3July, 2018 2 hours ago, MFX said: I currently run it just under my name, as it doesn't generate much in the way of income yet. The best thing I get out of it is being able to offset some of the costs of my camera equipment, etc. It’s not just about income ? You can run a business at a loss....not forever, but being a bad business person isn’t always a bad thing.... Buying and building cars to make YouTube videos is an expensive business to run..... have a chat to your accountant Link to comment Share on other sites More sharing options...
Troubleshooter Posted 3July, 2018 Report Share Posted 3July, 2018 7 hours ago, Coastr said: Taxing Australia into prosperity - will there ever be an Australian government with a clue? They have a clue alright, a clue how to just add another gouging onto taxpayers to blow it on gender studies grants, or any way to enlarge the govt or add red tape and restrictions onto stuff. Gouging from us for utilising our right to buy off whoever we want at the best price. Next they'll be charging us gst on what we spend O/S when we are on holidays Link to comment Share on other sites More sharing options...
ANF Posted 4July, 2018 Report Share Posted 4July, 2018 So our grubby government want us to buy from local shops/ suppliers and if we don't (how dare we!) they are going to charge us a range of obscene taxes and fess... all fine and good if they were trying to protect any local industry, which is what import duties/ etc should be doing. All of the parts for my Porsche, Mercedes and Volvo cars are made overseas (as is just about everything else these days). My Mercedes needs a new secondary air pump, FCPeuro $120 US + freight + GST + conversion = maybe $240 odd, my local dealer $3000 WTF! The parts guy even did apologise for such mark-ups. What are we supposed to do!!?? Grubments are supposed to look after the interests of the constituents, not rape them blindly!! FFS!!! Link to comment Share on other sites More sharing options...
Fishcop Posted 4July, 2018 Report Share Posted 4July, 2018 3 hours ago, ANF said: What are we supposed to do!!?? Grubments are supposed to look after the interests of the constituents, not rape them blindly!! FFS!!! Remember just 'who' it is that makes up "our" government... They are made up of 78% private schooled individuals (across both houses and parties) with nearly everyone of them having either a law degree or post-grad law qualification and MBA. And I stand to be corrected, but I don't think there is a current member of the House of Representatives with a trade qualification or background. These are people who either actually believe in "trickle down economics" or are simply taking the p!ss. Neither of which is acceptable or what the majority of us voted for. Australian government hasn't quite degraded to the level the USA has, but we're on our way. Remember when we used to laugh at our little cousin New Zuland? I'd move there in a second now - and not just for the cool cars and great roads... Link to comment Share on other sites More sharing options...
Zelrik911 Posted 4July, 2018 Report Share Posted 4July, 2018 On 7/3/2018 at 12:31 PM, MFX said: The thing is that I am not buying it over there, I just sent it over and am bringing it back. Jeff - you had better do some homework quick!!! In the olden days (yeah, thats me!) you filled out Customs' forms when you sent something O/S for repair, so they didnt charge you import duty when it came back in. That requirement faded away with the < 1$K no-gst deal, but I am sure the concept is still there & you could resurrect the ruling. Get onto it ASAP. Here is a true story, in my old car club in the 1960s, another member owned a prestige repair business. One day a rich prick in a new Ferrari ran into an old couple in their Ford farm ute on the Geelong Rd. killing them both. You can imagine what the Ferrari looked like after the crash. It was so bad that my friends firm sent it "back to Italy" for repair. In fact they just sent the ID plates & a few other small bits back & Ferrari put these on a new car. So it came back into Au as a 'repaired' one for no duty (also the driver, probably pissed, got off any serious charges as he was able to run away & hide after the collision). This is what filthy rich shits got away with in those days - and I reckon its coming back again. Link to comment Share on other sites More sharing options...
JLD Posted 4July, 2018 Report Share Posted 4July, 2018 FYI Freight is included in the taxable amount. I have been trying to argue this with Fedex for a week! Link to comment Share on other sites More sharing options...
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