May 31, 2018859 views

Australian GST Impost from July 1, 2018

Well guess my MassDrop days are up from July 1, 2018. Australian government in their wizdom are going to charge 10% Goods and Services Tax on all shipments into country. Today, shipments into Australia only attract GST if the dollar value is AUD $1000 or more (which means the majority if not all of my MD purchases fall into the GST free range up to now). So guess I join the ranks of Canada and EMEA where tax will be paid on purchases! I'm thinking with the exchange rate difference favouring US and this 10% GST tacked on - probably not going to be worthwhile most of the time in making a purchase on MD. Amazon.com will be out of bounds for me - I'll have to use Amazon.com.au so that 10% GST can be charged and eBay will be leveraging the 10% charge. Here's the article that alerted me to this but I sort of knew it was happening in the background - just was not sure of the date and if legislation had passed to allow it to happen.
https://www.theage.com.au/business/companies/amazon-to-block-its-us-website-for-aussie-shoppers-over-new-gst-rules-20180531-p4zikr.html
Any other thoughts on this folks?
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Varholiaglimp, LucQc, and 2 others
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Well, there is a limit that has been reached regarding POTUS insulting my country. It is not like I can't live without MD deals as there are alternatives there on the internet without the long waiting period at similar price and even sometimes lower. The only thing I might be missing is MD's only exclusive models, though I'm sure I'll get through it. lol ;-)
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I'm more worried about places like MD realising the burden of collecting GST on behalf of the Aus govt. There's exchange rate to consider, the accounting and legal fees. Retailers will soon see that this doesn't make business sense, so they'll opt out of dealing with Australia, like Amazon US. MD might follow that path and I wouldn't blame them if they do.
Why don't the Aus govt put in place checks and collection of duties at the border like Canada and EU? Because it costs too much. Why bother with GST if it costs too much to enforce it? Because they want to protect local businesses. But what about us consumers?
I'm sure Massdrop will find a way to offset this for us being a top bunch and all. Maybe charge the US customers a dollar delivery on all the free ones they get:D
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