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

Originally Posted by crowie

I forgot to say I wrote up a “feedback reply” on the Amazon US website as the above.
I’m sure Amazon have the IT know how to sort it.
No response as yet, probably won’t get one either.
BUT if enough of us do it they might get the message they have lost customers due to there own stupidity.

Donning tin foil hat and I have always liked a good conspiracy theory. Amazon might not want to play the game because it gives the government an insight into their overall sales from two different perspectives, what comes in and what they sell. If the maths work or don't work the government starts to get a picture of trading and might even give them an insight into company tax if applicable.

Good thought Chris, however, government have never really had the dudes who can do the independent thinking thing..

Originally Posted by Enfield Guy

Good thought Chris, however, government have never really had the dudes who can do the independent thinking thing..

They did at one point, actually. I thought Ken Henry did excellent work, and wasn't afraid of the hard calls, or "out there" calls. Remember it was KH that said to Rudd, re fiscal stimulus during the GFC, "Go hard, go early". We got through relatively unscathed.

It looks like FenceFurniture with post #380 is right on the mark, as to how the "GST on low value imports" is working.

The ATO has nailed eBay as a big fish to fry - I bought a new LCD digitizer off eBay tonight, to replace the one on my Samsung smartphone that I smashed - and eBay have slugged me GST on the importation, $18 extra on top of the $180 I paid for the item.

https://www.ebay.com.au/help/buying/...chases?id=4771

With all due respect, I'm not sure that Ken Henry was a career public servant. He did though do good work for the time. Excellent advice he gave it seems.

b

Originally Posted by onetrack

It looks like FenceFurniture with post #380 is right on the mark, as to how the "GST on low value imports" is working.

The ATO has nailed eBay as a big fish to fry - I bought a new LCD digitizer off eBay tonight, to replace the one on my Samsung smartphone that I smashed - and eBay have slugged me GST on the importation, $18 extra on top of the $180 I paid for the item.

https://www.ebay.com.au/help/buying/...chases?id=4771

I have been taxed by eBay in the same manner but I don’t seem to have received a tax invoice. All my PayPal receipts don’t show it
Did you find the same?

Originally Posted by Enfield Guy

I'm not sure that Ken Henry was a career public servant.

1986-91 Advisor to Keating on Tax matters (starting at age 29)
1991 Went back to Treasury (so must have been there for a short stint pre-86)
2001 Head of Treasury until 2011 when he retired.


https://en.wikipedia.org/wiki/Ken_He...ublic_servant)

Originally Posted by Beardy

I have been taxed by eBay in the same manner but I don’t seem to have received a tax invoice. All my PayPal receipts don’t show it

Presumably you need a tax invoice for either claiming back GST, or income tax purposes, so I would suggest that in a self-assessment situation, everything is done as though there is a tax invoice, and if they want to dispute it after an audit - the only way they'd find out - then I'd be saying "Well you guys precipitated this situation, not me. It's not MY fault that you can't get eBay and the like to play by the rules."

Originally Posted by FenceFurniture

They did at one point, actually. I thought Ken Henry did excellent work, and wasn't afraid of the hard calls, or "out there" calls. Remember it was KH that said to Rudd, re fiscal stimulus during the GFC, "Go hard, go early". We got through relatively unscathed.

I'm not sure if this was actually good advice. It may have got us through the GFC but it really only delayed the downturn and is likely to catch up with us harder and longer as a result.

Cheers,

Dom

Can it have a delayed affect ten years later? A delayed downturn was better than what almost everyone went through, surely. I suspect you'd probably have to be there and live through it. It was pretty much business as usual here, although for some - myself included - it did mean the end of business (as a mortgage broker, specialising in Investment Properties for a regular client base - they stopped investing).

Originally Posted by FenceFurniture

Presumably you need a tax invoice for either claiming back GST, or income tax purposes, so I would suggest that in a self-assessment situation, everything is done as though there is a tax invoice, and if they want to dispute it after an audit - the only way they'd find out - then I'd be saying "Well you guys precipitated this situation, not me. It's not MY fault that you can't get eBay and the like to play by the rules."

Yes that is how I intend to play it. They know EBay are collecting it so they know I paid it. I asssume over time they will refine the paperwork aspect but until then I paid it so I will be claiming it.

Originally Posted by FenceFurniture

Can it have a delayed affect ten years later? A delayed downturn was better than what almost everyone went through, surely. I suspect you'd probably have to be there and live through it. It was pretty much business as usual here, although for some - myself included - it did mean the end of business (as a mortgage broker, specialising in Investment Properties for a regular client base - they stopped investing).

It certainly can. The huge spending just created a massive public debt burden that we are saddled with and will affect our economy in the long-term. It also propped up the Australian dollar which helped to kill manufacturing in this country - and that may hurt us long-term as well. Worst of all, when the government undertakes large and rapidly implemented fiscal stimulus, like it did over that period and like it's doing now, it crowds-out private investment and is typically spent on often useless or at least poorly thought-through undertakings that aren't a genuine investment in our collective future (eg. pink batts insulation, poorly thought out infrastructure, cash rebates etc). Government trying to rapidly spend that amount of money, even if they do direct it towards productive investment (not typical) is also generally handled inefficiently and thus we spend more than we should / get less than we should for our money. It's often argued by economists that the net-benefit of fiscal expansionary spending is overall negative to the economy - unless it's very well targeted and invested in infrastructure / long-term assets etc - not just consumption expenditure.

Cheers,

Dom

Originally Posted by DomAU

It certainly can. The huge spending just created a massive public debt burden that we are saddled with and will affect our economy in the long-term. It also propped up the Australian dollar which helped to kill manufacturing in this country - and that may hurt us long-term as well. Worst of all, when the government undertakes large and rapidly implemented fiscal stimulus, like it did over that period and like it's doing now, it crowds-out private investment and is typically spent on often useless or at least poorly thought-through undertakings that aren't a genuine investment in our collective future (eg. pink batts insulation, poorly thought out infrastructure, cash rebates etc). Government trying to rapidly spend that amount of money, even if they do direct it towards productive investment (not typical) is also generally handled inefficiently and thus we spend more than we should / get less than we should for our money. It's often argued by economists that the net-benefit of fiscal expansionary spending is overall negative to the economy - unless it's very well targeted and invested in infrastructure / long-term assets etc - not just consumption expenditure.

Cheers,

Dom

Also, I'd say that our avoiding the effects of the GFC felt in other countries was far more down to the growth of China than anything our government did wrt fiscal stimulus.

Cheers,

Dom

Originally Posted by Beardy

I have been taxed by eBay in the same manner but I don’t seem to have received a tax invoice. All my PayPal receipts don’t show it
Did you find the same?

Looks like they have fixed it.

Purchase made on July 12 showed an addition "related payment" but no mention of GST of PayPal receipt

Purchase on July 21 now shows GST and relationship to the payment.

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