90% of It Isn't About the 10% At All

Our retail unions are advocating for the 10% GST to be applied to online purchases from overseas retailers because online retailers have an advantage over local retailers, which are obliged to charge GST.

Even the slightest analysis of this claim however,  reveals it to be a complete red herring.  Those of us who buy goods from overseas retailers do not do it to save 10%.  In fact, I'd happily pay 10% more to buy from a local retailer, but the reality is, I'm usually saving between 40 and 50% on Australian retail prices by buying online.  Why wouldn't I buy overseas?  So, you'd be tempted to say, "Knock me out - add 10% to the overseas price and I'll still be buying from them."  But here's the catch: it would be difficult, not to mention being an unwanted complication, for an overseas retailer to start collecting tax on behalf of the Australian government.  The likely outcome would be that the overseas retailer would simply decide to refuse to ship to Australia (as currently happens with some suppliers).  That's what the retail union is really aiming for.

The unions claim about the 10% advantage is disingenuous at best.  In reality, it's a cynical attempt to try lock Australian consumers back into the over-priced local market.