Thread: July the 1st 2018 GST On Low Value Imported Goods

We do have some small to medium manufacturers of world class machinery, for instance ANCA - ANCA - The World's Most Flexible Tool Grinder - and I'm sure if I know about this one there are others. To be successful these companies have to compete on the world stage. I've dealt with manufacturers of carbide cutting tools in China who proudly proclaim their use of these machines (it warms my heart much more than an Australian sporting achievement ). Just thought of another one - Lucas Mill (if you knew where these guys are located you wouldn't believe it, very clever man Warren Lucas). It's just a shame there aren't more of them.

Originally Posted by woodPixel

China (et al) can thump out nails, screws and cheap hammers like crazy, but they can't make pens, CPUs and parts for passenger aircraft..

Things are moving as we phaff about on line.

China's indigenously-developed CPU enters mass production - Xinhua | English.news.cn

Given they now make very sophisticated military aircraft it won't be long before they're making passenger aircraft parts.
https://www.news.com.au/technology/i...b472a6fad753d3

China undertakes more R&D on Rare-earth element materials and applications than the rest of the world put together. Their chemical industries are very well advanced which is crucial to underpinning advanced manufacturing.

They can't do everything but they're not far from it.

I meant my comments as vast generalisations. One would expect pockets of absolute expertise in any society.

It's a lot off track.....I was trying to philosophise on the absolute necessity of high tech and how as an entire country we should get our act together.

It's not only that things can be made cheaper in China, it's the fact that we got tired of the "Australia Tax" where everything for some strange reason cost a lot more than what they sell for overseas. With the advent of Amazon etc people could not only see how much cheaper things were they could buy them as well, greedy Australian retailers and import duties/taxes caused this. Now there complaining about it, go figure.

I lived in the U.S. for around 15 years and it's staggering the price difference of goods there and here, I bought one of those Omron wrist BP monitors at Walmart for around $50.00, they sell the same one at Chemist Warehouse here for $158.49 and proudly proclaim that it's $38.51 off.

https://www.chemistwarehouse.com.au/...essure-Monitor

So has any one bought any thing from <> 75 k suppliers after July 1 and if so what were the results?

Originally Posted by Pac man

So has any one bought any thing from 75 k suppliers after July 1 and if so what were the results?

I haven’t purchased anything but out of interest I had a look at the Australian online retailer I purchased a phone off just prior to 1st July.

The price has increased from $589 to $599 following 1st July. The listing says in small text that it is being sent from China. I tried putting it in the cart and it goes in at $599 + $10 delivery. No mention of GST, however in their small print T&C’s they do claim that the buyer is responsible for any additional import costs.

The difficulty still remains that you cannot be certain if the price you are paying is the final price.

At this stage it seems to be a two part system .... buying through larger businesses will attract GST, buying through smaller retailers will not attract GST.

Originally Posted by Sir Stinkalot

I haven’t purchased anything but out of interest I had a look at the Australian online retailer I purchased a phone off just prior to 1st July.

The price has increased from $589 to $599 following 1st July. The listing says in small text that it is being sent from China. I tried putting it in the cart and it goes in at $599 + $10 delivery. No mention of GST, however in their small print T&C’s they do claim that the buyer is responsible for any additional import costs.

The difficulty still remains that you cannot be certain if the price you are paying is the final price.

At this stage it seems to be a two part system .... buying through larger businesses will attract GST, buying through smaller retailers will not attract GST.

If the system works as intended the outcome should be the same - you will pay GST either at point of sale or at the border before delivery. Either way, you should count on paying GST, and consider yourself lucky if you escape it. One difference might be that if you pay at point of sale in eg China GST might not be added to postage, whereas it will be if you pay at the border.

It occurs to me that most of this thread applies to new goods either under the A$1000 threshold and from suppliers with an annual exporting value worth either > A$75,000 or < $75,000.

However, what is the position for used goods and used goods bought from private individuals? Also is there any difference for multiple used good under that A$ 1000 threshold? A few distinctions here just to further complicate the subject and to divert a little from the manufacturing question in Australia .

Currently, for example, there is no GST applied to used goods you buy in Australia through the likes of Ebay, Gumtree etc. particularly from private sellers. Should GST therefore be applied to imported used goods and indeed will it be applied to imported used goods?

Regards
Paul

Originally Posted by Chrism3

If the system works as intended the outcome should be the same - you will pay GST either at point of sale or at the border before delivery. Either way, you should count on paying GST, and consider yourself lucky if you escape it. One difference might be that if you pay at point of sale in eg China GST might not be added to postage, whereas it will be if you pay at the border.

Where are you getting this information from? According to the Australian Government itself, for items under $1000, you won't pay GST at the border. However, the overseas retailer, if selling more than $75000 of goods into Australia per annum, is required to add GST at their end. Sellers under $75000 are not required to.

The main point here is that for goods valued under $1000, there is no border collection ... unless you can demonstrate otherwise.

This might also help clarify Bushmiller's question about buying used goods overseas from an infrequent seller.

Read this:

https://www.homeaffairs.gov.au/trav/impo/buyi

"Buying over the internet

Things you buy over the internet will have the same rules, duties and screening processes applied as any other import.
You need to know that:

For goods with a value of AUD1000 or less, there are no duties, taxes or charges to pay at the border.
From 1 July 2018, the Goods and Services Tax (GST) may apply to low value goods when imported from overseas by consumers in Australia. However, the GST will be charged at the point of sale and not at the border.

For goods with a value over AUD1000, you will need to fill out an Import Declaration, and pay duties, taxes and charges at the border.
You will need to pay duties and taxes on some goods (like tobacco or alcohol) regardless of their value
Certain types of goods are not allowed to be brought into Australia, or else need special permits."

Originally Posted by Chrism3

If the system works as intended the outcome should be the same - you will pay GST either at point of sale or at the border before delivery. Either way, you should count on paying GST, and consider yourself lucky if you escape it. One difference might be that if you pay at point of sale in eg China GST might not be added to postage, whereas it will be if you pay at the border.

I don't believe this is correct - there will be no additional collection at border for items under $1000 (those over $1000 would always have been, and will continue to be collected at the border).

Glad I'm visiting family soon I UK, will be doing the odd trip to Axminster and second hand shops, will send them back to myself as gifts.

Sent from my Moto G (5) Plus using Tapatalk

Originally Posted by Gunnaduit

Where are you getting this information from? According to the Australian Government itself, for items under $1000, you won't pay GST at the border. However, the overseas retailer, if selling more than $75000 of goods into Australia per annum, is required to add GST at their end. Sellers under $75000 are not required to.

The main point here is that for goods valued under $1000, there is no border collection ... unless you can demonstrate otherwise.

This might also help clarify Bushmiller's question about buying used goods overseas from an infrequent seller.

Read this:

https://www.homeaffairs.gov.au/trav/impo/buyi

"Buying over the internet

Things you buy over the internet will have the same rules, duties and screening processes applied as any other import.
You need to know that:

For goods with a value of AUD1000 or less, there are no duties, taxes or charges to pay at the border.
From 1 July 2018, the Goods and Services Tax (GST) may apply to low value goods when imported from overseas by consumers in Australia. However, the GST will be charged at the point of sale and not at the border.

For goods with a value over AUD1000, you will need to fill out an Import Declaration, and pay duties, taxes and charges at the border.
You will need to pay duties and taxes on some goods (like tobacco or alcohol) regardless of their value
Certain types of goods are not allowed to be brought into Australia, or else need special permits."

The home affairs site is not up to date. See my earlier post - their call centre laid out the rules for me.
We shall have to see if they were right.

Good luck finding a savvy online retailer that won't ID you as AU traffic, tack on 10% and pocket it instantly.

All the government has done is make us pay more and fatten the margins of overseas retailers.

"Ripper!!!" They will say... AU client = extra margin.... Suckers!

Originally Posted by Chrism3

If the system works as intended the outcome should be the same - you will pay GST either at point of sale or at the border before delivery. Either way, you should count on paying GST, and consider yourself lucky if you escape it. One difference might be that if you pay at point of sale in eg China GST might not be added to postage, whereas it will be if you pay at the border.

This is where it is still not clear. There is still a lot of talk about GST not being collected at the border for sales under $1000 and it will be the responsibility of the seller to collect the GST. It goes back to the point that they would have a hell of a time stopping and checking every package under $1000 and then contacting buyers if they need to pay GST prior to collection of the goods once landed.

If it is not being collected at the border and overseas seller Bob charges Jane GST on her new widget, but overseas seller Joe doesn't charge Betty GST on her new widget (which is the same as Jane's) then Joe will be the seller of choice going forward as he will be 10% cheaper than Bob on the same item.

Its not a question about avoiding GST however based off what has written they seem to be casting a net to capture whatever GST they can get and anything else slips through (but that's ok because they caught more in their net than if they didn't cast the net at all). Hardly fair for the sellers who have elected to collect the GST who now are not as competitive as those who chose not to collect (or collect and pocket).