I saw a news program on television today, discussing how Gerry Harvey of Harvey Norman, is being slated and attacked online via media sources such as Facebook, Twitter, etc.
I’m not a real fan of Harvey Normal, I’ve often called the company Hardly Normal, but to see how some of the Australian public have reacted to his comments about why Australian companies should be treated fairly, and how foreign companies should be treated equally to Australian ones…  Well it is disappointing to say the least.
Some interesting comments:
- The greedy GST should have been done away with ages ago – as if the government doesnt rape and pillage enough money out of us
- you want Australians to pay even more tax! You filthy self serving pig, rot in hell maggot!!
Do these people realise actually realise what this is all about?
Almost all Australian retailers would like the same as Gerry Harvey wants, a return to equal treatment.
What is this EQUAL TREATMENT ? An equal GST tax rate on all purchases made by Australians.
And yet, some of these Australians feel that having everything EQUAL is unfair.
I would love to understand why they feel this, but I worry that they may not be able to explain it.
Let’s look at this logically.
If we continue to allow foreign companies to sell products into Australia, and avoid the Australia GST, what will be the result ? I will use the USA as a prime supplier of these foreign goods, just for clarity and as an example.
Fewer sales by Australian Companies
More Sales by US companies
More unemployed in Australia
Less unemployed in the US
Less Tax collected in Australia
More Tax collected in the US
Less money to spend on essential services in Australia
More money to spend on essential services in the US
Do sensible people actually believe that this is right, and anyone who would prefer to protect Australian Jobs, and to protect Australian Tax revenue, and to help to maintain funds for Australian essential services, hospitals etc, should be attacked for doing so ?
Are these people who attack Gerry Harvey, and others who want EQUAL treatment, really Australian, or are they from foreign countries wanting to get their hands on our tax money, instead of it being available for AUSTRALIANS.
It beggars belief that some people are so short sighted, and would rather help to sink their own country just so that they, as individuals, can avoid tax.
Maybe they just do not understand, and don’t want to find out, maybe they just prefer to attack someone.
It may not be too bad if the other counties made the same allowances:
- If a person in the Australia buys something overseas, then they avoid paying GST if the value is under $1,000.
- If a person in the UK buys something overseas, then they pay the same VAT when the goods arrive, although they are allowed ÂŁ18 (A$28) as a threshold where they do not have to pay VAT.
- If a person in the USA buys something overseas, then they pay the same taxes as someone who buys in the USA itself.
All that the retailers want is for the Australian system to be the same as our foreign competitors, and create an more level playing field.
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It appears that many of these people who are complaining about this situation may have well and truly missed the mark.
One of the points that the Retailers, including Gerry Harvey, want, is for the federal government to give everyone the same exemption from GST that the overseas buyers are currently getting.
ie: No GST on any purchase under $1,000, whether bought in Australia OR overseas.
Why isn’t everyone on their side about that ?
Is it because that will benefit ALL Australian buyers, and keep sales and jobs in THIS country (Australia).
It looks more and more like this is campaign against Australia, and many people have been caught up in it, and are being conned by this campaign.
Where will it end?
Will all the Australian retailers set up offshore Internet sites, just so that they too can take advantage of this GST loophole.
Dymocks, the Australian Bookstore, is already considering moving its website offshore to enable the company to start supplying Australian customers with international product, while eliminating GST costs.
This will have the effect of bringing prices down, and increasing the number of unemployed in Australia.
The following stores: Myer, David Jones, Harvey Norman, Target, House, Borders and Angus & Robertson are amongst those that would like to see equality in GST.
ie: Everyone pays it OR no-one pays it.
They want an end to subsidising overseas sellers.
Harvey Norman alone employs 4,691 full-time equivalent employees source
What would happen if Harvey Norman only sold via the Internet, using overseas bases ?
4,691 possible lost jobs ?
Lets look at the Harvey Norman Financials:
And some figures from the above that would affect every Australian:
How would the loss of that affect Australia ?
However, by removing other expenses, stores etc, and employing fewer and cheaper overseas staff etc, they COULD cut the selling prices by 29%.
Obviously this will not not happen, even though many might want it too, but it shows why Overseas Internet Shopping can be so much cheaper.
January 2011 source
Assistant Treasurer Bill Shorten confirmed that local retailers could sell goods from outside Australia without paying GST, if those goods cost less than $1,000. In other words, Shorten acknowledged that the loophole existed but announced a long-term inquiry.
So the limit is going to stay for some time, and retailers should go for it.
Bill Shorten said that the consumers will benefit.
He did not mention that the Australian workers would be the ones to suffer with loss of jobs if this industry did move offshore.
Bill Shorten: State Secretary and then the National Secretary of the Australian Workersâ Union, 1997 to 2007, before his move into Politics, but now a TRUE Politician telling Australian companies to move part of their business offshore to take advantage of tax laws, and who cares about the effects on Australian Workers.
Now THAT is a subject worthy of discussion.