Looks like the Ozzy Gov is trying to kill off tax free imports

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Forums › Bargains and Deals › Looks like the Ozzy Gov is trying to kill off tax free imports

old3eyes

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#177133 23-Jul-2015 15:14

Their latest proposal is to drop the GST free amount from $1000 to $20

GST free proposal

I bet the NZ Gov is watching this one closely.
I hope it never sees the light of day..

Regards,

Old3eyes

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#1350500 23-Jul-2015 15:17

I don't have any more problem paying GST on imports than I do paying it on goods here. I'd like to think the transaction fees would decrease though.

richms

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#1350505 23-Jul-2015 15:20

If gst becomes a problem on imports I will just register for it and make my ducking around with hobby stuff into a business.

Richard rich.ms

sleemanj

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#1350513 23-Jul-2015 15:25

Would gladly pay GST on every single import I do. What I would not gladly pay is the IETF. Your $20 parcel including shipping should not end up costing you $60+, which is what would happen if the IETF still applied with a lowered threshold.

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James Sleeman
I sell lots of stuff for electronic enthusiasts...

tripp

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#1350546 23-Jul-2015 15:51

I agree, I have no problem paying GST I do have a problem paying all the extra fee's on top of GST.

wasabi2k

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#1350556 23-Jul-2015 15:59

richms: If gst becomes a problem on imports I will just register for it and make my ducking around with hobby stuff into a business.

hmm, never considered doing it under my business......

So I could just claim it all back anyway.

But there is more than just GST - dutys are on top?

bazzer

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#1350560 23-Jul-2015 16:07

You mean like this guy?

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11434179

richms

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#1350574 23-Jul-2015 16:17

bazzer: You mean like this guy?

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11434179

No. I mean I would start youtubing like Bruce Simpson does etc.

Richard rich.ms

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ajobbins

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#1350577 23-Jul-2015 16:22

They reckon it will bring in about $600m in revenue, but cost in excess of $2bn to administer...

Twitter: ajobbins

sleemanj

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#1350580 23-Jul-2015 16:24

wasabi2k:

But there is more than just GST - dutys are on top?

Yes, duty doesn't usually apply, but if you have to pay GST then you ALSO (and always) have to pay the IETF, which is an extra $49.24.

So if for example our limit went to $20 like proposed in AU, if you bought a $20 thing which wasn't subject duty, including shipping, that would cost you an extra GST of $3, plus IETF of $49.24, your $20 thing suddenly became $72.24

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James Sleeman
I sell lots of stuff for electronic enthusiasts...

mattwnz

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#1350621 23-Jul-2015 17:08

ajobbins: They reckon it will bring in about $600m in revenue, but cost in excess of $2bn to administer...

If they get rid of the CEOs and senior staff on high wages, and don't built themselves tax payer palaces, they could do it cheaper I bet.
Really this is only a problem when the NZ dollar is strong. But as it has weakened a lot, people are buying a less stuff overseas now, as the weak NZ dollar has put the price up alot.

wasabi2k

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#1350630 23-Jul-2015 17:37

bazzer: You mean like this guy?

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11434179

No, I have a legitimate company (that is registered for GST) that I do my IT contracting through.

The dodginess would be claiming the GST of stuff that isn't related to the operation of my business. I could possibly argue that tablets/PC stuff was, other stuff not so much.

sir1963

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#1350635 23-Jul-2015 18:00

bazzer: I don't have any more problem paying GST on imports than I do paying it on goods here. I'd like to think the transaction fees would decrease though.

Yep and for most of the stuff I buy in I would still be coming in at about 1/2 the price I would pay in NZ.
AND, to make it more cost effective I would be looking at buying in bulk, bringing in stuff for other people so the fixed costs can be shared out.

I wonder how they will collect this ?
When you pay (not sure how they will do this, NZ credit card may be easy, other forms of payment not so much)
Or When in comes into the country, which is more labour/cost intensive and not worth while.

JimmyH

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#1350646 23-Jul-2015 18:45

I don't have a problem paying GST. For the small amount I purchase offshore, NZ retailers are so ludicrously uncompetitive that it wouldn't change my purchasing habits at all. However:

They would need to make it very easy to pay GST if they want to collect it on small amounts. I don't want to have shipments delayed by weeks and have to jump through a lot of hoops to pay (say) a $3.75 GST bill on a $25 item. Something like I register once and get a unique user code and password, I get an emailed when a package arrives for me, and can pay it through a web portal with the package automagically released.
They need to do away with the ridiculous flat-rate biosecurity levy that they charge on top, or at least make it proportional to the risk and value of the package. I do object to paying a $20 biosecurity levy, on top of the $3.75 GST, for my $25 item.

It would almost be worth it to finally stop the incessant whining from uncompetitive retailers. However, it does seem a bit nuts to charge GST on small value items, where it would cost them more to collect it than they would get.

mattwnz

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#1350668 23-Jul-2015 18:56

JimmyH:

They need to do away with the ridiculous flat-rate biosecurity levy that they charge on top, or at least make it proportional to the risk and value of the package. I do object to paying a $20 biosecurity levy, on top of the $3.75 GST, for my $25 item.

The problem is that there is so much illegal stuff coming into NZ, that it is so expensive to administer and police. I wonder what percentage is stopped, and what gets through. I mean, you get letters and packages that may have cost less than $5 to send, and worth les than $20, that contain drugs or foreign matter that is a biosecuirity risk. The processing of that probably uses hundreds of dollars of staff time each time there is a $5 letter or package is found. But it is the people who are buying more expensive stuff, and that get hit with the fee, that are subsidising it. They have to work out a better way of doing it.

nzkiwiman

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#1351150 24-Jul-2015 13:12

90% of what I purchase cannot be found in local stores

If they don't bring it into the country, then retailers can't complain they are missing out

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