10% tax on all items online in Australia from July 1, 2017

[HarmFull]

Man Australia has such weird laws.

 

I can guess why they are doing this though: it's to give "brick and motar" stores a chance to compete with online stores. However I don't think this is the solution. More competition means lower prices for the consumer!

[Virus__]

Oh boy, I can't wait to pay tax on items I just cannot buy at all in this country and never will be able to. Also I can't also wait to pay tax on birthday, christmas & other gifts my FRIENDS send me from overseas, stuff which I never paid for. That exact one happened to my friend in England, I sent her a pretty large gift last year, cost me like $60 to post to her, customs slapped her with a something like a £30 fee. She never paid me a cent for it, I was so pissed off.

[FireFox]

Income tax needs to be a lot higher at the wealthy end. But a sales tax like GST shouldn't be there in the first place. It gets into this terrible idea that poor people don't deserve to have entertainment or any luxury items. It's ridiculous.

 

I don't think that is needed, at the wealthy side of the scale the tax percentages is already high. What there needs to be is severe consequences for people avoiding paying taxes or a large part of it with the help of bloody tax havens. That is what is needed.

[PerfectTemplar]

Don't look at me like I get why there are taxes on both income and consumption, but a LOT of countries have these taxes, so I would assume they exist for good reason. Supposedly it discourages consumption and therefore encourages saving or investment. If you want to argue that GST shouldn't exist at all, that's a different argument.

 

However, the status quo of exempting stuff from GST because you bought it from a foreign seller for under $1000 is kinda ridiculous.

It's there so that the government can get revenue without increasing income tax or company tax. In Australia there is currently a revenue problem that can be solved by cutting costs (in areas where money is wasted such as the Royal Commision into unions not public services) and closing tax loopholes and cracking down on the hundreds of billions that companies like Google, Apple and Microsoft avoid paying the government in tax. If all these things were done, they wouldn't have to tax the poor to sustain a positive revenue stream.

 

 

I don't think that is needed, at the wealthy side of the scale the tax percentages is already high. What there needs to be is severe consequences for people avoiding paying taxes or a large part of it with the help of bloody tax havens. That is what is needed.

 

In Australia it's extraordinarily low. There are a lot of ways to stay below tax thresholds such as creating an entertainment allowance of tens of thousands and possibly hundreds of thousands of dollars. Don't pay tax on going out for dinner and stay below tax brackets. Easy. The issues with tax and the wealthy not paying it doesn't stem from tax evasions or any illegal methods but simple loopholes in the system that are entirely legal.

[Tigerbomb8]

OP don't forget to add the import tax for orders 1000$ and over.. 

[soaringchicken]

this is why as soon as I get out of uni I'm out of here. God damn rediculous country, I can't have one thing to myself without the Government getting their filthy hands on it, I can't get good internet because Telstra, who works with the Government, can't be f'ed to invest in our god damn nation wide fiber, my Dad can't park outside my school because he'll get god damned fined $90 for being in an "incorrect parking space" by a camera car (has actually happened).

 

"Lets tax every god damn money avenue under the sun even though we have one of the best economies on the planet, money money money"- Joe Hockey 2015

[Serin]

Create new industries thus create prosperity? Nah frak it, kill the clean energy industry and STEM. Screw the free market.
Tax multinationals at a reasonable level? Nah, frak it... tax the poor on basically everything and take away their healthcare services.
Support 'Liberal' ideas like equality, freedom of expression and self determination? Nah, frak it, we're not into personal freedoms. 

And they say the left is totalitarian... 
 

 

Joe can go fuck himself.

 

^Repost for emphasis

[Tass]

im sorry, but that is allmost hilarious...... 10%, comon.

any purchase outside EU of more than 13$ can / will result in a minimum tax of 25% of everything including shipment, postal office takes allmost 30$ for handling the taxation (no matter what the item costs) and you still risk a additional tax of anything between 5-30% depending on the item. Cars excluded offcourse, those have 25% tax and a 180% registration fee. thats in denmark.

 

However, there are lots of good Things coming from those taxes. healthcare etc. Every country has its own way of doing Things. But 10%..... LoL

[Dabombinable]

I'll agree to this on the condition that all Politicians globally get paid based on what they do in their job, and if they agree to pay for trips, meetings etc out of their own pocket. I'll also agree if politicians who turn their citizens into debt slaves get locked in maximum security prisons.

[Serin]

im sorry, but that is allmost hilarious...... 10%, comon.

any purchase outside EU of more than 13$ can / will result in a minimum tax of 25% of everything including shipment, postal office takes allmost 30$ for handling the taxation (no matter what the item costs) and you still risk a additional tax of anything between 5-30% depending on the item. Cars excluded offcourse, those have 25% tax and a 180% registration fee. thats in denmark.

 

However, there are lots of good Things coming from those taxes. healthcare etc. Every country has its own way of doing Things. But 10%..... LoL

The question though has to go to whether this is a good application of taxation and whether other sources of revenue are available

The government here aren't at all actually interested in preserving our healthcare system or indeed doing anything half decent in terms of infrastructure development.

They concocted a completely fake budget emergency to get elected now they're just following through slowly destroying the aforementioned services, all the while taking apart new potentially profitable industries that challenge their donors holdings.

Basically, I agree, we have to charge tax to support the society we've built and indeed things like public healthcare etc are excellent and necessary things to have in a healthy society, I'd just note that their aims are not so noble. And certainly not aimed that those who can afford the extra money out of pocket.

[thekeemo]

Why isn't this thing in the first place

[Takata]

It's there so that the government can get revenue without increasing income tax or company tax. In Australia there is currently a revenue problem that can be solved by cutting costs (in areas where money is wasted such as the Royal Commision into unions not public services) and closing tax loopholes and cracking down on the hundreds of billions that companies like Google, Apple and Microsoft avoid paying the government in tax. If all these things were done, they wouldn't have to tax the poor to sustain a positive revenue stream.

If people are getting outraged over this simple GST loophole, you can imagine how outraged the multinational companies will be if government ever attempts to close their loopholes, and how much money the companies will pour into holding their loopholes open. >.>

[Snaeb_aka_Beans]

Things are expensive in Australia but remember how much people make there. Shoot minimum wage is more than double the US and with their apprenticeship programs and free college I'd rather live there.

[ChineseChef]

im sorry, but that is allmost hilarious...... 10%, comon.

any purchase outside EU of more than 13$ can / will result in a minimum tax of 25% of everything including shipment, postal office takes allmost 30$ for handling the taxation (no matter what the item costs) and you still risk a additional tax of anything between 5-30% depending on the item. Cars excluded offcourse, those have 25% tax and a 180% registration fee. thats in denmark.

 

However, there are lots of good Things coming from those taxes. healthcare etc. Every country has its own way of doing Things. But 10%..... LoL

 

180%??  That has to be a typo, or I am totally calculating it wrong.  are you saying a 10k car has an 18k registration fee with a total cost of 28k (not counting 25%tax), or it costs 18k total (including the fee)?

[PerfectTemplar]

If people are getting outraged over this simple GST loophole, you can imagine how outraged the multinational companies will be if government ever attempts to close their loopholes, and how much money the companies will pour into holding their loopholes open. >.>

Difference is, GST is an unpopular and unfair tax in the first place. You shouldn't compare individuals with muti-billion dollar corporations.

[Bob Jim]

10% is half of what the UK has to pay in EVERY. SINGLE. PURCHASE. On top of income tax and whatever. It does not apply to books, but that is it.

[Tass]

180%??  That has to be a typo, or I am totally calculating it wrong.  are you saying a 10k car has an 18k registration fee with a total cost of 28k (not counting 25%tax), or it costs 18k total (including the fee)?

nope, no typo there. 10k car, add in 25% tax at 2,5k and 180% at 18k total of 30.500.

With that said, it is not the entire truth. I took the short route. the exact tax is as follows. And this is in Dkr (Danish kroner)

 

Any car is taxed with 25% no matter what it costs. Further more, there is a registration fee. the value of a car up to and including 80.500 kr (~12.200 usd) is taxed at 105%. anything above 80.500 kr is taxed at 180%.to put Things into perspective, everything above a VW up (strating Price 90.000 dkr incl. taxes etc or 13.600 usd) , Peugeot 107, Suzuki alto etc. will hit the 180% tax mark. and even those small cars often hit the 180% mark when you want some real accessories with them. ( they are mostly completely stripped to have the lowest possible starting Price)

As an example, a VW polo Blue GT costs 290.000 kr, thats ~43.700 usd.

cheapest BMW 3-series is 471.500 dkr ~71.500 usd

and so on.

Count in a tax to own a car every 6 months :-D

 

just for the fun of it, cheapest titan x i could find on the fly 8000 kr. thats close to 1200 usd. i believe the msrp in usa is 1000$ right? if so, allmost 20% more here in denmark.

 

1$ = ~6,6 dkr.

 

Dont get me wrong. i am not complaining as such (well taxes on cars is just plain stupid high) i love my country, we have a deacent (allthough not flawless) healthcare system, and safety nets to "catch" people in dire need. But there are as everywhere else som Things that need be changed.

 

Edited a typo. 20% not 20$

[Tass]

The question though has to go to whether this is a good application of taxation and whether other sources of revenue are available

The government here aren't at all actually interested in preserving our healthcare system or indeed doing anything half decent in terms of infrastructure development.

They concocted a completely fake budget emergency to get elected now they're just following through slowly destroying the aforementioned services, all the while taking apart new potentially profitable industries that challenge their donors holdings.

Basically, I agree, we have to charge tax to support the society we've built and indeed things like public healthcare etc are excellent and necessary things to have in a healthy society, I'd just note that their aims are not so noble. And certainly not aimed that those who can afford the extra money out of pocket.

Agree, and i know far from enough about the country to be able to comment an politics or what the tax Money is used for. 10% just hit me as a fairly low tax due to our own system.

[Swiftjanxxx]

10% a lot, hah, obvious american. In europe 50% of your salary is taxes and everyone is okay with that.

haha are you from austria? 

We in liechtenstein have between 3 % and max 24 %

[RagnarokDel]

Because Australia didnt like spending "only" 50% more on shit they buy, they now want to spend 60% more.

[Takata]

 

Difference is, GST is an unpopular and unfair tax in the first place. You shouldn't compare individuals with muti-billion dollar corporations.

I kinda doubt that most of the world would implement a type of tax if it was actually unfair. This -is- a tax loophole, and while it gets you a great deal less than closing other income tax loopholes, it's probably a great deal easier to close this one.

[FireFox]

 

It's there so that the government can get revenue without increasing income tax or company tax. In Australia there is currently a revenue problem that can be solved by cutting costs (in areas where money is wasted such as the Royal Commision into unions not public services) and closing tax loopholes and cracking down on the hundreds of billions that companies like Google, Apple and Microsoft avoid paying the government in tax. If all these things were done, they wouldn't have to tax the poor to sustain a positive revenue stream.

 

 

 

In Australia it's extraordinarily low. There are a lot of ways to stay below tax thresholds such as creating an entertainment allowance of tens of thousands and possibly hundreds of thousands of dollars. Don't pay tax on going out for dinner and stay below tax brackets. Easy. The issues with tax and the wealthy not paying it doesn't stem from tax evasions or any illegal methods but simple loopholes in the system that are entirely legal.

 

 

Then Australia along with every other country needs to step up their game and close these loopholes. I don't earn a great deal of money (somewhere around £13-14,000 per year) yet I can't get away with it. The world really fucks me off sometimes lol

[Snaeb_aka_Beans]

Because Australia didnt like spending "only" 50% more on shit they buy, they now want to spend 60% more.

But earning more than twice the average american including min wage is not a factor or anything...

[dalekphalm]

I mean, Tax free is great and all, but this is not a big deal.

 

In Ontario, we pay taxes on many things online - just the same as we would pay in-store: 13% Sales Tax.

 

Why should online items be exempt from Sales Tax? That makes no sense. Granted, we don't want to put unnecessary burden on online retailers, but that tax could easily just be collected as the item is imported into the country - you pay the tax when you pick up your shipment from the Post Office or Courier (if UPS, etc).

[BuckGup]

Im sorry Aussies