Wellington Parade, East Melbourne, 2017-Apr-24 — /EPR Retail News/ — The Australian Retailers Association (ARA) strongly supports the Government in closing the Low Value Threshold (LVT) loophole for the purchase of offshore tangible goods under $1000.
Russell Zimmerman, Executive Director of the ARA said they have been working with the Federal and State Governments to reduce the low value threshold and provide a level playing field for Australian retailers.
“This is a tax equity issue and internationally-based retailers should pay their fair share of tax,” Mr Zimmerman said.
“Retailers conducting business in Australia should pay their tax just like Australian retailers currently do.”
The ARA has said this GST has been a long time coming, expressing thanks to then Assistant Treasure Bill Shorten for his commencement of the process in 2011.
“Multiple jurisdictions are already introducing similar laws as this is a global tax issue,” Mr Zimmerman said.
“This new legislation will create a fairer tax system for Australian retailers by creating a level playing field against international competitors.”
This new model may not be perfect but the ARA believes that the proposed system is the best model at this point.
“Freight companies and credit card businesses should not be responsible for collecting this tax, the onus should fall on internationally-based businesses to collect it” Mr Zimmerman said.
“Australian retailers already collect this tax in Australia, therefore it is unnecessary to complicate this process and allow international retailers to continue to exploit this legislative loophole.”
“We already know that overseas retailers selling online have the capability of charging taxes as required by Australian law,” Mr Zimmerman said.
The ARA will be appearing as witnesses at the Senate Economics Legislation hearings this Friday 21 April to reiterate the importance of this GST.
“We strongly support this proposed GST model and will continue to work with the Government to resolve any implementation issues,” Mr Zimmerman said.
Mr Zimmerman will be available at 12 noon outside the Flinders Room at Mantra Hotel, 222 Russell Street, Melbourne VIC 3000
For interview opportunities with ARA Executive Director Russell Zimmerman call the ARA Media Line on 0439 612 556, or email firstname.lastname@example.org
About the Australian Retailers Association:
Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.
1300 368 041
Source: Australian Retailers Association (ARA)