GST on Foreign Purchases


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I saw a news program on television today, discussing how Gerry Harvey of Harvey Norman, is being slated and attacked online via media sources such as Facebook, Twitter, etc.

I’m not a real fan of Harvey Normal, I’ve often called the company Hardly Normal, but to see how some of the Australian public have reacted to his comments about why Australian companies should be treated fairly, and how foreign companies should be treated equally to Australian ones… Well it is disappointing to say the least.

Some interesting comments:

  • The greedy GST should have been done away with ages ago – as if the government doesnt rape and pillage enough money out of us
  • you want Australians to pay even more tax! You filthy self serving pig, rot in hell maggot!!

Do these people realise actually realise what this is all about?

Equal GST for Everyone Say No to GST


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Almost all Australian retailers would like the same as Gerry Harvey wants, a return to equal treatment.

What is this EQUAL TREATMENT ? An equal GST tax rate on all purchases made by Australians.

And yet, some of these Australians feel that having everything EQUAL is unfair.

I would love to understand why they feel this, but I worry that they may not be able to explain it.

Let’s look at this logically.

If we continue to allow foreign companies to sell products into Australia, and avoid the Australia GST, what will be the result ? I will use the USA as a prime supplier of these foreign goods, just for clarity and as an example.

Fewer sales by Australian Companies
More Sales by US companies

More unemployed in Australia
Less unemployed in the US

Less Tax collected in Australia
More Tax collected in the US

Less money to spend on essential services in Australia
More money to spend on essential services in the US

Do sensible people actually believe that this is right, and anyone who would prefer to protect Australian Jobs, and to protect Australian Tax revenue, and to help to maintain funds for Australian essential services, hospitals etc, should be attacked for doing so ?

Are these people who attack Gerry Harvey, and others who want EQUAL treatment, really Australian, or are they from foreign countries wanting to get their hands on our tax money, instead of it being available for AUSTRALIANS.

It beggars belief that some people are so short sighted, and would rather help to sink their own country just so that they, as individuals, can avoid tax.

Maybe they just do not understand, and don’t want to find out, maybe they just prefer to attack someone.

It may not be too bad if the other counties made the same allowances:

  • If a person in the Australia buys something overseas, then they avoid paying GST if the value is under $1,000.
  • If a person in the UK buys something overseas, then they pay the same VAT when the goods arrive, although they are allowed œ18 (A$28) as a threshold where they do not have to pay VAT.
  • If a person in the USA buys something overseas, then they pay the same taxes as someone who buys in the USA itself.

All that the retailers want is for the Australian system to be the same as our foreign competitors, and create an more level playing field.

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