The federal government is propelling the Australian shoppers to pay the GST on online purchases. The Australian retailers and marketers have expressed that they have put themselves in a stumbling block with the overseas competitor.
The government has come up with an idea stated that the extra 10% on GST would not be levied on online purchases below $1000. The main issue is said to be that it is affecting the Australian jobs.
The government is insinuating to go down a little further up to $20, which would soon be a crisis for the Australian shoppers to buy from overseas.
Hypothetically, if the government drops down to $20, this would bring out a major change in the world of overseas and would be difficult for Australian shoppers to disburse 10% GST on online purchases.
But the positive side is that there would be a fair opportunity for the Australian retailers to grab their customers back. It also stated that the enormous growth of online services have chopped down the tax intake of government. It is not that we are withdrawing our country’s economy but safeguarding them from the dissolution.
Later one of the officials also mentioned that this kind of problem, not only our country but other countries are also facing the same problem. There has been a huge diminishing of income with the evolution of online purchase, thus the decision was taken to safeguard the base foundation and to eliminate the substitutes by levying GST on online purchases.
With the current scenario, the Australian dollar has become weak and propelling the GST on online purchases would muddle the overseas retailers to a greater extent.