Not sure they have a choice to not charge the tax due to reciprocal tax agreements between countries.
I'm not up to date with any tax agreements between Australia and Britain/England (or EU, USA, and so on), but I'm very sure that Wiggle and other overseas retailers don't want to miss out on the Australian market. Remembering back to when wiggle made a strong push to penetrate here there was many news articles about how much we were spending on bike parts etc from over seas. Wiggle and lots of other retail giants have invested heavily here, they wouldn't be giving up in a hurry.
When this new gst argument began there was many more sizeable figures printed about how much we were spending overseas. Sure Turnbull and Morrison might be bragging about the tax cuts he intends to roll out for us, but they'll be recouping that and more through expansion of the gst. This is an attack on the free market principles that the liberal party supposedly stands for. They may as well have called it a 10% tariff. I wonder how that would've gone down with purchases from Alibaba, eBay, or any other e-commerce organisation based in a country that we now have a free trade agreement with?
I don't have a problem with the principles that a GST is based on.
I'm not against a gst either, domestically. It picks up a bunch of extra revenue from sources that never would've been taxed (like pensioners, tourists, and those doing cash work) and facilitated a moderate modernisation of our disorganised system that existed prior. It also gave so many businesses the opportunity to be tax collectors...who doesn't want that joy? It isn't an equitable tax though. Thank fuck cakes are easy to work out!
I feel that if this is going to happen, which it is, having the processing done off shore is a missed opportunity to create jobs domestically. Whether those jobs are a government agency or outsourced to private firms would be irrelevant. Somewhere in this process there will be additional work required. With our (apparently) sensitive economy this might not have been a bad idea.
I'm also curious to see if retailers (like wiggle) will bump prices up a little to cover their increased business costs or if they will lower them to help ease consumer pain.