We didn’t.
It’s to help poor Harvey Norman and other archaic bricks and mortar stores sell their $4000 made in China couches to “level the playing field”. This tax only affects large companies that have to opt into and collect the tax, Amazon has already said cya Australia much to the relief of Harvey and his boys, that would have been too much competition to deal with.
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Not really large companies mate. Any business selling over $75,000AUD into Aus.
That’s only $57,000USD.
The issue remains on how this is really going to be policed and how eBay is going to implement any procedure to collect the taxes. I would assume eBay would collect on behalf of the thousands of sellers using the platform.
eBay said they are going to increase all international items for Australians (under $1000) by 10% automatically into the item and shipping price and will send this money to Aus tax man. This tax only really applies to large companies that are pressured to act, smaller businesses even over the threshold will not be actively targeted there is just no way Australian gov will have the time/resources to audit every business that sells to Aussies.
If it makes you guys feel any better, they are trying to push a sales tax law in the US as well for eBay sales. It will hurt buyers and sellers.
Is this an entire US law they are trying to push? Since I know states like Oregon and Montana don’t have sales tax.
Mjisaacs
I also recommend Treasure Japan. That’s what I use, and they allow you to declare whatever value you’d like.
I’m not certain, but people may be misunderstanding. The tax for items over $1000 Is the same. Everything over that will be stopped and taxed by customs. Anything below, it will be the sellers responsibility to take the tax and make payments to our taxation office. I can’t see any benefit if someone asks to lower the declared value, as the seller takes the responsibility of tax evasion. Or are we suggesting that marking it as a gift will make it completely tax exempt either under or over $1000?
The discussion at least on my end is that the tax is absurd, imagine a world where this tax system took off and every single country adopted the same system. It would mean that a seller would have to lodge individual tax returns for every single country they sell to. Also the ATO has no jurisdiction to enforce any measures against non Australians, an American citizen who “dodges” this tax is not going to be extradited to prison in Australia.
The only people this tax benefits are large established Australian businesses that import over the $1000 threshold, all of the companies that lobbied for this tax are large Australian companies that sell vast majority of imported goods. None of them were virtuous Australian businesses selling Australian made products. But they masquerade this tax as benefiting the small struggling Aussie businesses, who ironically are 10% worse off if they buy their goods from overseas.
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And Nevada:)
So it does benefit the Australian businesses who sell Australian made products.
Doesn’t PWCC undervalue items too?
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Yep sure do
A lot of Aussie businesses that make local products still have to import certain materials.
That’s just the nature of geography and how the world works these days.
These small businesses aren’t losing to overseas sellers to begin with anyway =\
Very interesting. Is it simply a new revenue source or is there a specific plan by the government on how to spend the money?
@garyis2000 Maybe some, but generally speaking Australian made items are priced a lot higher and exist in a separate market than a made in China equivalent. An example would be the Australian made Ugg boots priced at $199 as compared to similar style sold at Targetfor $39.
Bricks and mortar small businesses struggle in Australia the leases are almost unmanageable, no doubt stemming from the insane property prices. My grandfather bought his store in Melbourne for $15,000 in the 1960s (today’s inflation about $200k) if I were to buy it would probably cost me around $1.5m - $2m today. Australia was a different place in the 60s compared to today but still interesting to contrast and compare!
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My wife LOVES Ugg’s. She keeps one pair in the master bath, one entering the kitchen, and one entering the entryway.
I think I pay like 80-90usd each,
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Does your grandfather/your family still own this commercial property? If yees what is operating from there these days?
Will the tax be paid at the EBay checkout or separately?
@1by1collector It was a general store, he sold it in the 70s when supermarkets were gaining more popularity