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The Forum > General Discussion > Do major retailers have a case for applying the GST to those people who choose to buy On-Line ?.

Do major retailers have a case for applying the GST to those people who choose to buy On-Line ?.

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Recently, I've heard several CEO's of some very large and well known Retail Outlets, suggest Government must apply the GST to all goods exceeding $30. Essentially, to capture those people who choose to purchase their goods On Line. Whether or not those On Line vendors, are located in Australia, or abroad.

These same CEO's are complaining and aggrieved that their profits have been dramatically declining for some time. Blaming it exclusively on the notion that they're business is inhibited by the GST, while 'On Line' sellers are not similarly repressed.

It's also been reported by skilled retail specialists, the majority of complaints from buyers, are not just higher prices, charged by these major retailers, it's the complete lack of any service.

And when you do get decent service, often these's a total absence of any product knowledge, that should accompany that service.

There's a very well known retailing mogul who chooses to vocalize his own advertisments (ad nauseam). When asked why the Australian retaining sector is apparently failing, with many stores of all sizes and types closing, he blames everything and everybody, but his own industry.

Many of the solutions he seeks, are clearly within his own purview, and influence. Instead of always assigning blame on some hapless 'on line' vendor, either here or abroad.

Intersetingly, I've had personal experience shopping in this gentleman's stores. Occasionally, you'll get a sales person who does possess some direct product knowledge, consequently they'll furnish you with good advice and guidance.

Still there are others, who may well be able to answer your queries, but for whatever reason, decline to share that knowledge with you. Preferring to treat you, the prospective purchaser, as some type of ignorant fool. Therefore, making you feel quite ashamed and embarresed for even asking such a silly question ? You then quietly decamp from the store, as quickly and as unobtrusively as possible, with 'lips of string'.

Are we any less loyal and patriotic to Australia, by purchasing our 'stuff' on line and from abroad ? What do you all think ?
Posted by o sung wu, Thursday, 13 September 2012 4:46:57 PM
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I too have found far more than one sales woman/man in that store as you describe.
Yet the boss if he knew would sack them.
If not service and advice why do we pay more to shop in person?
On line is looking better o sung wo
Posted by Belly, Thursday, 13 September 2012 5:36:25 PM
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A recent shopping experience with the major retailers, does nothing to make me want to return to them.

I was after a product, I visited Harvey Norman, The Good Guys, Retravision, JB-Hi, and would walk out after about 10 minutes or more of trying to find a sales person.

Any way what ever happened to economic theory about competition decreasing prices.
Posted by JamesH, Thursday, 13 September 2012 5:41:36 PM
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"""
Are we any less loyal and patriotic to Australia, by purchasing our 'stuff' on line and from abroad ?
"""

Even patriotism has a cost and it's far more than I can bare in this country.

Doing business in Australia is too expensive for a myriad of reasons, mostly bought about by government policy. Trying to add GST to online purchases in the belief it's going to save their necks is pure idiocy.
Probably all it would do is cost the tax payer more than it's worth trying to manage it.

When I can buy something online and abroad for 300% to 500% less than I can buy it here, even if they do have an online presence at slightly reduced pricing. 10% on is not going to change a thing!
Posted by RawMustard, Thursday, 13 September 2012 5:47:22 PM
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In Europe one had to attend technical college for 4 years to become a qualified sales person. Here any yokel with a big mouth or a cleavage can be a sales person & it shows in the service we get. Online shops have more personality than some of the staff in person here. Same goes for the food outlets & the tourism industry. It's all too basic, no finesse yet the charges are as high as a posh place overseas.
Posted by individual, Thursday, 13 September 2012 7:43:28 PM
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I wonder if I am living in a different country? I have always had courteous service from shop staff. Maybe it is because I don't expect to be treated like a prince.

As for on line shopping, there are a range of goods that I buy from overseas including electronics because the prices and postage are far lower. For example I bought a simple EU to Aus Adaptor incl postage for $1. I can't even start my car for that. GST on that would be 10c.

The limit for GST presently is > $1000 and the retailers want to bring it down to $50. The GST collected on say a $100 item is $10 for which customs have to separate the parcel, determine its value and try to collect the $10 from the purchaser. The cost to the customs is probably about $100 in admin and postage fees. (This information I got from someone working at the ATO).

The result is that the government spends roughly 4x what it collects, and the effect is increasing prices to consumers and pissing off the public, not generally considered a good move even for Labor.
Posted by Shadow Minister, Saturday, 15 September 2012 7:38:34 AM
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