Retailers suffer while government plays politics on GST issue

Peak retail industry body the Australian Retailers Association (ARA) said retailers were anxious to hear some good news after Federal Treasurer Joe Hockey met with state treasurers today with an agenda to close the GST loophole; however, no such decision has been made.  

ARA Executive Director Russell Zimmerman said it is now up to the government to fix what the previous government couldn't fix.

“The ARA has met with senior State and Federal Government Treasurers over recent weeks on the low value overseas GST collection issue, and we look forward to urgent action following today’s meeting.

“Australian retailers have been competing at a disadvantage for too long, and it is only fair that the closing of the GST loophole is made a priority.

“Retailers will be working alongside the government to ensure this issue is resolved efficiently and effectively. Large overseas online retailers can be directed by the government to collect GST at virtually no cost – this would see around 80 percent of the missing GST collected.

“If a reduction to $20 in the threshold from the current $1000 collection rate was implemented, around $1 billion GST could be collected in the 2014-15 financial year. This revenue could be put into the state governments for schools, police and other community services.

“The ARA will continue to work alongside the government to get this issue resolved once and for all,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $258 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. Visit http://www.retail.org.au/ or call 1300 368 041.

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