GST threshold for imports to be lowered

Nerf Herder

Wheel size expert
My personal favourite being where they state if you've paid local tax, VAT, etc... we're going to tax you GST on that too.
It's just easier to calculate base on total invoice value ... That's why GST is based on total shipped value including shipping.
Shipping being a service.

What they've said re service is also all above board ... As they are collecting GST off their service.

Heading back to collection ... Should be at the borders and collected by the logistics company processing ... Customs acts as auditor with spot audits to ensure Logistics companies are complying ... Massive fines for compliance breaches ...

This takes away reliance on foreign entities ... Does not act as disincentive to foreign entities to sell into AU ... But it will lead to processing delays and other operationally related delays as logistics companies then have to collect funds from consumers to pay GST ... What all this does is create a disincentive for consumers to shop over seas and bring back benefits to bulk importers.

This may lead to boos and hisses ... But it's all about economies of scale and levelling of the playing field. Just a shame the people that govern us have no actual operational business experience.
 

cokeonspecialtwodollars

Fartes of Portingale
It's just easier to calculate base on total invoice value ... That's why GST is based on total shipped value including shipping.
Shipping being a service.

What they've said re service is also all above board ... As they are collecting GST off their service.
Yes I understand that the GST is levied on shipping as a service provided... but to add it on top of local tax is taking the piss a little, given that they will receive a copy of the local invoice I don't see how it would be any more difficult to calculate the GST payable from the excluding tax amount.

^ it would be hard to tell what they can tax on the service...it is happening overseas. Does the service.entity exist in Australia or America? Doesn't it pay taxes insurances etc in one and not the other? Jerks are grabbing all the monies.
Regardless of where the service is being performed if the invoice is issued by an Australian business under an Australian ABN then the service must be subject to GST

So if I buy a second hand fork from a private person in USA, do I still have to pay the gst.
Only if the private person ships more than AUD 75,000 worth of goods per year.
 

ForkinGreat

Knows his Brassica oleracea
Anyone got a contact telephone number for Customs and border protection in Melbourne?
I've got $100 worth of bike bits awaiting clearance for the past 2 weeks. I've had packages clear before and after this one arrived, and gone straight through. NFI why this one is held up?? - a base layer, a BB, a chainring and a cleaning brush. all from Merlin.
 

bikie

Rock Bottom
I just ordered stuff from bike-discount. I hope customs don't screw me over but I'd like to know what the process is too if someone has gone through it already.
 

Boom King

downloaded a pic of moorey's bruised arse
Yes I understand that the GST is levied on shipping as a service provided... but to add it on top of local tax is taking the piss a little, given that they will receive a copy of the local invoice I don't see how it would be any more difficult to calculate the GST payable from the excluding tax amount.
You're being screwed if you're paying a local tax for an export order. Exports are exempt from local taxes and as such, they should not be included in the transaction.
 

ForkinGreat

Knows his Brassica oleracea
I just ordered stuff from bike-discount. I hope customs don't screw me over but I'd like to know what the process is too if someone has gone through it already.
put something in your cart with country set as Deutschland and currency =euro, then change the country to Australia (you may need to put the item in your cart again). You should see a price difference.
 

Nambra

Definitely should have gone to specsavers
It's just easier to calculate base on total invoice value ... That's why GST is based on total shipped value including shipping.
Shipping being a service.

What they've said re service is also all above board ... As they are collecting GST off their service.

Heading back to collection ... Should be at the borders and collected by the logistics company processing ... Customs acts as auditor with spot audits to ensure Logistics companies are complying ... Massive fines for compliance breaches ...

This takes away reliance on foreign entities ... Does not act as disincentive to foreign entities to sell into AU ... But it will lead to processing delays and other operationally related delays as logistics companies then have to collect funds from consumers to pay GST ... What all this does is create a disincentive for consumers to shop over seas and bring back benefits to bulk importers.

This may lead to boos and hisses ... But it's all about economies of scale and levelling of the playing field. Just a shame the people that govern us have no actual operational business experience.
No boos and hisses here. I'm not against paying GST as long as it's collected sensibly; the current plan is a joke though. I agree that it would be better paid at our border and not collected by the foreign vendor, my fear is that it might lead to 'price gouging' by the logistics companies - charging a 'administrative fee' to provide the GST collection service. So you might pay 10% GST plus $19.95 or 5% of the value of the goods (whichever is greater) for them to handle the transaction.

I think someone here commented on the topic a while back, suggesting that PayPal or credit card issuers would be better positioned to collect the GST. PayPal in particular already has the vendor and the purchaser registered and it would be simple to determine who bought what, and apply tax if required.

What is madness is our government expecting the foreign companies to register for GST and collecting it. 19% for the EU, 10% for AU etc. None of them take any responsibility for import duties and taxes as it is, why is the GST going to suddenly compel them to change?
 

cokeonspecialtwodollars

Fartes of Portingale
You're being screwed if you're paying a local tax for an export order. Exports are exempt from local taxes and as such, they should not be included in the transaction.
But if you're using a freight forwarder then it is sent to a local address and therefore subject to local taxes, as freight forwarding is often used to bypass geoblocks it would kind of defeat the purpose to try and explain that it's an export order.
 
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born-again-biker

Is looking for a 16" bar
(Warning, warning - RANT alert)

I'm sorry but this whole change makes my blood boil.

Once again the regular people are getting reamed by utter hypocrisy.
When big companies & governments want to screw down wages & access cheap (unethical) labour across borders, they say things like :
"... It's the benefits of the new global economy..."
and
"... This new alliance with China/Brazil/USA/whoever... will bring cost savings and efficiencies to the market..." (read: their shareholders)

... But when I want to take advantage of this new global economy by finding a better deal on the same product in Germany or USA??
Oh no no no no!
We can't have this!
We'll have to change the fucken rules so we still get our pound of flesh out of you too. Don't you dare get clever and try to play the game to your advantage...because we make the rules and you get shafted twice. Get it?

I would have no problem buying more stuff locally if Aussie retailers & wholesalers were actually fair and honest with their profit mark-ups over cost price. But I'll be fucked if I'm going to pay mark ups of 50, 70, 100 or 150 % just because they think they can get away with it.
There was a time when products, services, investments etc were modelled, marketed & sold on an expected profit of 10 to 15 %!!

If my LBS wants near to $2000 for a set of Fox 36's...and Fox made thousands of them this year for, say, $150 per unit (?)
... Then how much profit is "fair"?
Capitalism sucks when everyone is gouging. No wonder we're all buying stuff offshore.

And while I'm ranting....
Seriously, wtf does an importer /wholesaler /distributor really do?

I'm sorry Nerfherder (and others) but I resent your middle man mark up. They don't research, build and create new products. They don't take the huge risks that the manufacturer had to take every time they bring a new product to market. They don't deal with the customers at the coal face. They often dodge any responsibility to the consumer or retailer when there's product issues.
And yet I have to pay a significant mark up so they can have a warehouse, an email address, 3 disinterested staff and a sense of entitlement?
Most of them don't even have the balls to keep a deep stock inventory of every size, style, model or type.
How many times have we all heard "Sorry we'll have to order that in from the manufacturer - that'll be about 6 weeks. We don't normally stock those..."
Sorry?? I thought that was your fucken role in the whole supply chain thing?

Sorry, but I smell horse shit.... and it stinks.

"Free" market economy my arse.


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I have less of a problem with the source of the revenue and more with how it is used.

In the context of the application of GST on imports it's only 10%. Most are saving way more than that by shopping OS.

The bigger issue I see is why are stuffs way cheaper OS and the impact of buying Stuffs from OS on the local economy.

Sure, the individual saves a buck, but at what cost?
 

Boom King

downloaded a pic of moorey's bruised arse
(Warning, warning - RANT alert)
But I'll be fucked if I'm going to pay mark ups of 50, 70, 100 or 150 % just because they think they can get away with it.
There was a time when products, services, investments etc were modelled, marketed & sold on an expected profit of 10 to 15 %!!


And while I'm ranting....
Seriously, wtf does an importer /wholesaler /distributor really do?

I'm sorry Nerfherder (and others) but I resent your middle man mark up. They don't research, build and create new products. They don't take the huge risks that the manufacturer had to take every time they bring a new product to market. They don't deal with the customers at the coal face. They often dodge any responsibility to the consumer or retailer when there's product issues.
And yet I have to pay a significant mark up so they can have a warehouse, an email address, 3 disinterested staff and a sense of entitlement?
Most of them don't even have the balls to keep a deep stock inventory of every size, style, model or type.
How many times have we all heard "Sorry we'll have to order that in from the manufacturer - that'll be about 6 weeks. We don't normally stock those..."
Sorry?? I thought that was your fucken role in the whole supply chain thing?

Sorry, but I smell horse shit.... and it stinks.

"Free" market economy my arse.


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Mark up and profit are two entirely different things...

How the fuck does the shit you want get to market if there are no importers / distributors, particularly given most manufacturers don't want to follow a direct to market model.

You clearly have very little understanding of the supply chain and associated expenses along that chain. Cost of goods, shipping, overheads, expenses, wages etc, all have to be covered by earnings. On top of that, a business needs to make some profit.

It also looks like you subsribe to the "Field of dreams" philosophy on stock holding. Just because it's in stock doesn't mean it will sell. Local importers evaluate the local market, trends etc and make decisions on what they feel will or won't work. Just because they import a particular brand does not mean they carry everything that brand produces.

Importers have many issues affecting product to market that are beyond their control. I know of one that represents a particular tyre brand. That brand is manufactured by a larger producer that currently has stock issues. The small brand is put on the back burner while the large producer gets their shit together, causing supply issues for the small but growing brand. On top off that, the minimum order off the small brand represents many months worth of sales in the tiny market that is Australia, thereby tying up money in stock and creating other issues with new products releases, particularly when they are delayed past a planned re-order point in the stock cycle.

Those guys you buy off overseas all make profit, they just work on a lower margin due to huge volumes of sales. Their buying power also gives them advantages in terms of cost of goods. @Nerf Herder pays more for some of his products than CRC/Wiggle do, difficult to compete but he and his team do a great job, offering much more to their supporters then the high volume low price merchants.
 
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ForkinGreat

Knows his Brassica oleracea
Mark up and profit are two entirely different things...

How the fuck does the shit you want get to market if there are no importers / distributors, particularly given most manufacturers don't want to follow a direct to market model.

You clearly have very little understanding of the supply chain and associated expenses along that chain. Cost of goods, shipping, overheads, expenses, wages etc, all have to be covered by earnings. On top of that, a business needs to make some profit.

It also looks like you subsribe to the "Field of dreams" philosophy on stock holding. Just because it's in stock doesn't mean it will sell. Local importers evaluate the local market, trends etc and make decisions on what they feel will or won't work. Just because they import a particular brand does not mean they carry everything that brand produces.

Importers have many issues affecting product to market that are beyond their control. I know of one that represents a particular tyre brand. That brand is manufactured by a larger producer that currently has stock issues. The small brand is put on the back burner while the large producer gets their shit together, causing supply issues for the small but growing brand. On top off that, the minimum order off the small brand represents many months worth of sales in the tiny market that is Australia, thereby tying up money in stock and creating other issues with new products releases, particularly when they are delayed past a planned re-order point in the stock cycle.

Those guys you buy off overseas all make profit, they just work on a lower margin due to huge volumes of sales. Their buying power also gives them advantages in terms of cost of goods. @Nerf Herder pays more for some of his products than CRC/Wiggle do, difficult to compete but he and his team do a great job, offering much more to their supporters then the high volume low price merchants.
I am happy to support some local importer/distro etc businesses - like Nerfherder (link sports?) DIYMTB and a few others, because I have heard current overall good feedback about customer service, or I have experienced good customer service from them myself.

I understand the economies of scale and buy price breaks on volume purchase orders all too well.

I also understand that the prime objective of a business is to actually stay in business. no-one starts a business intending to merely break even or operate at a loss.

That being said, when I see a part or a nice pair of bibshorts or whatever - for sale locally for anything up to twice as expensive or greater, I look online and overseas for that product.

Peoples' buying behaviour will not change with 10% GST on under $1000AUD online purchases, IMO, because even after getting slugged with an extra 10%, they will still be saving a packet over buying many things locally in AUS.

All it's going to do is piss people off and make them work a bit harder to find a saving.

I think people should buy a truckton of items (that you don't need in a hurry) in orders that barely qualify for free worldwide shipping and flood customs. Jam up the customs clearance centres until customs themselves admit defeat.

I haven't bought cassettes, chains, mechs, cranks, handlebars, brakes or anything much that goes on a bike - from a local seller for years. I'm sure I would baulk at paying local price for any of these things.

I have bought 3 forks, 2 LEVS, a couple of saddles, some tyres, gloves, 2 helmets and some shoes locally, because the price was reasonable, and, in the case of the shoes and the helmets, I needed to try them on for fit.
 

link1896

Mr Greenfield
Speaking of reasonable, Mountain Bike Direct's (MTBD) price in this mornings marketing email for the new came creek eeWinga Titanium cranks.

Manufacturers suggested retail price( msrp) is 999 usd

MTBD offering at 1492.95 AUD inc gst

Minus gst that's $1357

USD to AUD exchange rate MTBD are buying at is probably $0.75

1357 x 0.75 = 1017 usd. 18 bucks over the USA's msrp.

Good to see they are trying hard.
 

Boom King

downloaded a pic of moorey's bruised arse
Speaking of reasonable, Mountain Bike Direct's (MTBD) price in this mornings marketing email for the new came creek eeWinga Titanium cranks.

Manufacturers suggested retail price( msrp) is 999 usd

MTBD offering at 1492.95 AUD inc gst

Minus gst that's $1357

USD to AUD exchange rate MTBD are buying at is probably $0.75

1357 x 0.75 = 1017 usd. 18 bucks over the USA's msrp.

Good to see they are trying hard.
But don't forget the msrp includes murican tax.
 

born-again-biker

Is looking for a 16" bar
But don't forget the msrp includes murican tax.
In my experience in North America the state and /or federal sales taxes are almost never quoted in the display price.
(I have lived and worked in the US and Canada for extended periods)
Just sayin....

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born-again-biker

Is looking for a 16" bar
I'm not trying to attack Nerfherder or any other good, consciencious distro specifically.

But recent attempts to communicate with more than one importer regarding a new bike purchase were frustrating to say the least. (another story)

For the record, I have a healthy, active MTB Direct account (and sometimes Pushys).... and I buy tyres, sealant, knee pads and wheel truing from my LBS.

So I'm not going to hell yet?

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