Young shoppers buying products online could soon have to pay more than just a shipping fee as a heavy GST could be introduced to all purchased overseas goods.
Treasurer Joe Hockey said this week the tax could be applied to all offshore online purchases and prices of any online items will not be exempted.
Even a cheap packet of lollies from Europe or a mini key-chain bought online from Japan could be hit by the government’s new tax.
The younger generation of online shoppers will feel the brunt of this new tax, as they browse daily imported goods on their laptops or smartphones.
Retail store worker Miss Gabriella Rush used to frequently shop for online products. She finds it frustrating for this tax to be introduced given the rising cost of living.
“It makes a lot of sense to be purchasing items online, with smartphones and laptops introducing easier access to the digital shopping market,” she said. “This shift to online is something progressive and revolutionary in society, its something we can’t turn a blind eye to.”
If this act comes into play, online stores of international brands will also be hit by the GST. In turn, this will help the struggling local retail market by diverting consumers towards a cheaper local alternative.
Ms Rush says the introduction of the tax might put people off from buying online for a while, but this might help encourage people to shop locally more.
“This tax might inject more into the local retail market,” she said. “Which is good because the retail industry is struggling at the moment.”
Yet, some shoppers such as Monash University student Michelle Low prefer to purchase overseas goods because of the better quality of brands.
“I found the local products not that appealing to me,” she said. “Because in terms of comparison to branded goods, overseas products are more well-known and have a better quality.”
“This tax seems ridiculous because you are already paying so much for the overseas product and shipping costs, and now it includes GST,” she added. “This would make you think twice before buying anything online.”
Joe Hockey flags removal of #GST threshold for all overseas online purchases http://t.co/odXinb1Og6 #auspol PIC: AAP pic.twitter.com/ixj6bNEH5B
— ABC News (@abcnews) July 27, 2015
Mr Hockey also said threshold could be removed completely, saying “it may well go to zero as well.”
For consumers such as Ms Low, though, the tax would not discourage them from buying overseas goods.
“People will find other means to import or purchase the items overseas without paying the tax,” she said.
“Instead of buying them online, I will just have to wait until I travel overseas and purchase these goods myself.”
Image: Keith Williamson via Flickr
