As seen on Inside Retail.
On April 24 2017, Kathrin Bain, a lecturer at the School of Taxation and Business Law at UNSW, wrote an article with a critical stance on the government’s plan to apply GST on overseas online purchases commencing July 1 2017. Kathrin’s argument is that this would not “level the playing field” between local and international retailers anyway.
It appears inevitable that sooner or later the GST rate in Australia will increase, despite the current disjointed and highly politicised tax debate.
When this happens, who will be hit the hardest? Which social-economic group will lose the most when the GST rate gets hiked to 15 per cent?
Retailers beware: the debate about changes to the Australian GST system is gaining momentum. A discussion paper recently released by the Treasury builds a case for an increase to Australia’s rate of goods and services tax, along with other proposed tax system amendments.
This article originally appeared in Inside Retail on 21 November 2014.
You can easily spot a catastrophe, but gradual decline can go on for years unnoticed. This is the reality for the Australian retail industry, slowly suffocating under the burden of ever-increasing labour costs, onerous workplace regulations and tax and duty free direct imports. Yet, no one seems to care.