Citing an Australian "jobs perspective", Assistant Treasurer Josh Frydenberg spoke to reporters on Friday about an upcoming Coalition tax White Paper that will re-examine a contentious tax loophole. The nation's online shoppers benefit from a Goods and Services Tax (GST) exemption for items purchased from overseas that cost under A$1000. According to the Sydney Morning Herald, Australian retailers have "constantly complained" about the disadvantage that the exemption results in.
The issue was examined in a 2011 Productivity Commission report that concluded that even though the loophole created only a "minor" disadvantage for domestic sellers, the GST threshold should only be reduced under "cost effective" circumstances. The Labor government of the time was advised to establish a system for the official processing of parcels entering the country.
Comments were made by the Australian Retailers Association on Boxing Day, a hectic shopping period around the country due to the post-Christmas retail prices, with Association head Russell Zimmerman informing reporters:
"I think it's vital that the government does something on this very quickly. The threshold should be at least $30, but preferably down to zero ... we've got some great online and bricks and mortar retailers."
Mr Zimmerman was joined by Myer chief executive Bernie Brookes, who reaffirmed the Assistant Treasurer's comments regarding employment. Mr Brookes announced that the Australian government is actually "creating jobs in Birmingham, England ... Los Angeles ... China." He added that the government is not creating domestic jobs "because of the free kick" it gives workers in international locations. The Myer head believes that an additional $1 billion in tax is being missed.