Inability to technically update systems in time for July 11. The time frame between the law being passed and its effect is too short.
Big overseas retailers have very fast logistics (at least before the local delivery companies get their hands onto the goods). But generally this is a competitive advantage for them as Australian online retailers have been significantly slower in the past and only in the last two years are the leading Australian online retailers committing to speedy processing and delivery.2. Orders of $1,000 will be subject to delay, fees, complexity and potential double payment of GST.
Wiggle also pinpoint a very valid concern that items may have had GST levied but when they are processed by custom then this can't easily be documented and there is a chance that GST is levied a second time.
Wiggle say that the law targets big companies with 'commercial cargo paperwork' while smaller companies who use postal services can slip past even when they sell in excess of $75,0003. Smaller competitors using postal services may not apply GST.
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For Wiggle, the Australian market is important and in the submissions I notice a lot of submissions by freight companies. I peaked into one and their issue is being involved in the collection or have a responsibility for documenting so essentially want to be excluded.
DHL noted
--DHL endorses the recommendations of previous Government-appointed bodies, including the Productivity Commission and Low Value Parcel Processing Taskforce, which found that the cost of GST collection at the border (upon arrival) would exceed any GST revenue gained, resulting in a net welfare cost.
The end result however is that this restricts both consumer and business access to goods because overseas companies will find it harder to comply.
It is already common for overseas retailers to block Australians from purchasing certain items. You could argue that this gives larger and established Australian businesses a better opportunity to be the single supplier - but limiting competition or forcing customers to purchase from one, or a limited range of suppliers or retailers is also manipulating the market.