On the 1st of July 2018 Australians will pay 10% GST on any item purchased from an overseas retailer source 2. Previously the 10% only applied to items over $1,000 AUD. That means the measly $2 gold braided phone charger from Aliexpress now costs $2.20
This new GST on imported goods is a frustrating one, for those that love to get onto some cheap Chinese made tech and gadgets from Aliexpress or Banggood. The effect of this on Ozbargain will be a decent hit too, a lot of post’s where deals coming from overseas which now will be priced higher.
If you’re wondering why the Australian government has done this then look no further than billionaire Gerry Harvey. Founder of Harvey Norman had a sook and rallied around when news of Amazon Australia was rising. The issue I have with Gerry is he realises these overseas sellers are undercutting him big time, fewer consumers for Harvey Norman to rip off. You are certain to find a better deal on electronics and tech online than at Harvey Norman, Plus you don’t have to deal with their pathetic service. Upselling unnecessary products to the elderly and misleading consumers. Amazon Australia and the ever-growing and improving online stores across the world where really putting the squeeze on the bricks and mortar stores like Harvey Norman.
Forcing Aussies to be ripped off
Amazon United States store said it will no longer ship to Australia because of this new tax. Meaning the Australian consumers can only use the watered down Amazon Australia website. Gerry Harvey still wasnt happy about this news, saying “This was supposed to happen ten years ago” source. Perhaps a sign that Harvey Norman was going down the gurgler in the fight against global e-commerce.
I am all for the Australian government standing up for its businesses but if Australian retailers want to rip Australian consumers off then they deserve to lose sales. Consumers shop with their wallets and why should they pay more just because it’s an Australian store? Service and warranty are a reason, but if you’re not offering good service than you aren’t getting my money.
The Government went too far with this. If goods under $100 were free from the 10% GST id be happy and im sure majority of Aussies would be. Why tax a $2 phone charger to make someone go into a store here and pay $7? Ridiculous. I’m sure the Aussie retailer’s didn’t put prices down either when this protection tax got cast over the country.