Our special Australia tax, inflated pricing and costly services are all a factor of our country’s proximity to the rest of the world. If that wasn’t enough, retailers are now fighting for what they believe to be a more level playing field by forcing online shoppers to pay more for foreign goods. The existing rate that you may be aware of is that anything over $1,000 is liable for 10% GST. A two-day meeting at the Australian Council of Governments (COAG) witnessed leaders the industry and our country debate over GST being ‘modernised’ to include items under the value of $1,000.
NSW Premier, Mike Baird said that this debate was aimed at “effectively bringing the current system into the modern age” . The council also discussed other areas of GST at the COAG on Thursday 16th July and didn’t rule out making additional changes as and where they saw appropriate for modernisation purposes. It would finally appear as though Australian retailers are getting what they have been requesting for years, but how will this affect your pocket?