GST proposal might benefit Melbourne’s independent retailers

Independent retailers are looking at the possibility of receiving a boost with the GST-free threshold from overseas purchased goods lowering dramatically from $1,000 to just $20.

Assistant Treasurer Josh Frydenberg has proposed the change to level the playing field by applying the tax to electronically purchased products from overseas.

Warren Bonnet, owner of Embiggen Books in Melbourne, said such a tax would be a significant step towards balancing competition in the industry and ultimately beneficial to the customer and the local economy.

“People say online shopping is good because the customer benefits but they don’t in the long run,” he said.

“But there has been industry after industry wrecked and that is testament to it (online shopping).”

“Unless we adapt our shopping methods on the ground as people, then industries will be continually effected. But people aren’t going to change their behaviours so easily.”

“Anything to level the playing field is good.”

Benny Badge is the owner of Wax Museum Records located in Campbell Arcade below Flinders Street, and he said the presence of online shopping is less damaging to his business but he welcomes any kind of equalisation.

“I think we’ve had it pretty good for a fair while with the value of our dollar, and online shopping has got away with a lot.”

Wax Museum Records, Campbell Arcade.

“All industry in Australia is affected by international goods but I think there is a strong enough balance between people who like to buy locally – in our industry anyway – and people who like to buy online,” he said.

“I think especially electronic goods and other online buying should be brought back to a fair standard and if tax is a part of that I think that is reasonable.”

Kalinda Vary said her employer, Metropolis Bookshop in Curtin House, is unaffected by the prevalence of online shopping but agrees a tax could change consumer behaviour.

“It would make people consider other options”, she said.

The GST threshold will be discussed on August 21 when state and federal treasurers meet and is supported by the Australian National Retail Association and the Shop, Distributive and Allied Employees Association who have both lobbied to have the limit lowered.