Feeds

Online shopping tax slug not worth the effort: National Australia Bank

$AU800 million? Tell 'em they're DREAMING, son

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

State and federal governments lovingly eyeing off a billion-dollar windfall if the GST threshold on online purchases is lowered are deluding themselves, according to a former Treasury economist now with the National Australia Bank.

The NAB conducts a long-running research series into online commerce in Australia, giving weight to its chief economist, Alan Oster, stating that the take from eliminating the GST threshold entirely would raise a paltry $AU360 million.

Currently, the Australian Customs Service allows incoming packages to escape assessment for GST if the goods are valued at less than $AU1,000. This administrative decision, labelled a “loophole” by the retail industry and its lobbyists, is designed to avoid spending five dollars in bureaucracy to recover three in tax.

The threshold has long been fingered by bricks-and-mortar retailers as the cause of their woes, helping them draw attention away from geographic price discrimination practiced by multinational manufacturers.

In late November, Australia's state treasurers began lobbying the Federal government to change the threshold.

According to The Age Ostler, launching the latest NAB retail sales index, said the “best case scenario” of a zero threshold would be $AU360 million.

In fact, Ostler said, NAB's analysis of two million transactions per day leaves no doubt that there's no secret pot of gold awaiting the government.

“If you lowered the threshold from $1000 to $500, you would raise $40 million; if you lowered it to $100, you would raise $210 million; if you lowered it to $25, you would raise $310 million,” he said. “And if you got rid of it completely, you would get about $360 million.” ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Britain's housing crisis: What are we going to do about it?
Rent control: Better than bombs at destroying housing
Top beak: UK privacy law may be reconsidered because of social media
Rise of Twitter etc creates 'enormous challenges'
GCHQ protesters stick it to British spooks ... by drinking urine
Activists told NOT to snap pics of staff at the concrete doughnut
What do you mean, I have to POST a PHYSICAL CHEQUE to get my gun licence?
Stop bitching about firearms fees - we need computerisation
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
Oz biz regulator discovers shared servers in EPIC FACEPALM
'Not aware' that one IP can hold more than one Website
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.