appears that julia is not keen on the idea - well done jules -...

appears that julia is not keen on the idea - well done jules - thats the first good decision you have made


PM unlikely to tax online shopping
NICK BUTTERLY and ANDREW TILLETT CANBERRA, The West Australian January 5, 2011, 2:55 am

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The Gillard Government has signalled that it is unlikely to cave in to pressure from big retailers and slap a tax on products bought online from overseas, warning that policing such a measure would cost more money than it raised.

Independent Senator Nick Xenophon scoffed at claims from big department stores that they could not compete against a tide of cheap internet imports. He likened it to Goliath pretending to be David.

Some of Australia's largest clothing, electronics and whitegoods outlets yesterday stepped up their campaign for a rewrite of the tax rules, complaining that the current arrangement gives an unfair advantage to foreign companies selling goods online.

Goods bought on the internet from overseas do not incur GST if they are worth less than $1000.

The alliance of Australian retailers wants GST applied to online purchases or removed from goods they sell for less than $1000.

Companies calling for the change include Harvey Norman, Myer, David Jones, Target and Borders.

The group took out full page advertisements in major newspapers around the country, warning Australian jobs were at risk.

The retailers found an ally in the Greens, which wants to lower the GST-free threshold to $100.

"The current threshold robs the government of revenue that could be used for schools and hospitals and creates jobs overseas at the expense of jobs here," Greens leader Bob Brown said.

Assistant Treasurer Bill Shorten said there was no doubt retailers had a difficult Christmas because of the uncertain financial climate but warned against "knee-jerk reactions" to the slow down.

"The cost of compliance would be greater than the tax raised," he said. "The global financial crisis, the high dollar and poor sales before Christmas does not justify flattening a tax willy-nilly where it hasn't existed before."

Billionaire retailer Gerry Harvey questioned why he should not be given the same free kick handed to overseas retailers.

"I employ people in this country, I do pay taxes, I pay rent, so can I have the same go," he said.

Senator Xenophon said government should be giving tax breaks to smaller businesses, not large corporations, warning companies such as Harvey Norman and Target already had "extraordinary" market power. "If anyone needs our support, it should be the family businesses and the small shops that are not only battling a growth in online sales but also battling these retail giants," he said.

Consumer group Choice spokeswoman Ingrid Just said retailers' complaints about the impact of the GST avoided the fact that online stores were offering bigger discounts, regardless of the GST.
"There are far better prices that go way beyond the 10 per cent GST," she said.