New GST rules

Talk about musical instrument construction, setup and repair.

Moderators: kiwigeo, Jeremy D

User avatar
peter.coombe
Blackwood
Posts: 553
Joined: Fri Oct 15, 2010 2:52 pm
Location: Bega, NSW
Contact:

New GST rules

Post by peter.coombe » Wed Jun 20, 2018 2:40 pm

Anyone have any idea how the new GST rules for imports under $1000 is going to work. As I understand it, the bigger companies such as Ebay will be charging customers and paying it, but what about the smaller companies such as LMI and Stew Mac? There are millions of small companies all over the world, the Australian government cannot possibly get all of them to register to pay GST. Is this going to mean long delays and an enormous logjam at the border as Aussie customs collect the money? I got an email from the ATO saying we need to pay GST for all imports if not registered for GST, but zero information on how the hell we pay it. I smell a coming shemozzle.
Peter Coombe - mandolin, mandola and guitar maker
http://www.petercoombe.com

User avatar
kiwigeo
Admin
Posts: 9419
Joined: Sat Sep 29, 2007 5:57 pm
Location: Adelaide, Sth Australia

Re: New GST rules

Post by kiwigeo » Wed Jun 20, 2018 4:57 pm

Great news for Tax Accountants!!
Martin

simso
Blackwood
Posts: 1621
Joined: Mon Apr 25, 2011 10:36 pm
Location: Perth WA

Re: New GST rules

Post by simso » Wed Jun 20, 2018 5:52 pm

Wifes a book keeper, apparently the forwarding companies like Dhl, Fedex are going to be required to collect money on behalf of the government before releasing the goods, we will see what happens hey.

What an absolute IMO cluster situation, government being really really greedy, nothing IMo about being fair across business's

Steve
Steve
Master of nothing,

Do your own repairs - http://www.mirwa.com.au/How_to_Series.html

User avatar
peter.coombe
Blackwood
Posts: 553
Joined: Fri Oct 15, 2010 2:52 pm
Location: Bega, NSW
Contact:

Re: New GST rules

Post by peter.coombe » Thu Jun 21, 2018 11:03 am

Ok, but that is likely to mean delays. How do the forwarding companies contact us? There is usually not an email address on the package, and not necessarily a phone number either so that leaves snail mail. The forwarding companies, and that must include Australia Post had better have big warehouses! What about packages that have already paid GST, how will they know it has already been paid?

I am not so sure the government is being greedy. They were under pressure from Gerry Hardy and his mates. The problem is with small packages the cost of collecting the GST outweighs the revenue gained. What they have done is to dump this cost onto ebay etc and the forwarding companies. These companies have to recover their costs somehow so there will probably be a fee in addition to the GST, and don't be surprised if the fee is more than the GST and maybe even more than what the package is worth. In the end we pay through the nose. Protectionism by stealth.
Peter Coombe - mandolin, mandola and guitar maker
http://www.petercoombe.com

simso
Blackwood
Posts: 1621
Joined: Mon Apr 25, 2011 10:36 pm
Location: Perth WA

Re: New GST rules

Post by simso » Thu Jun 21, 2018 4:36 pm

Yes that is where no one really knows whats going to happen, the forwarding companies are going to be collecting on behalf of the government, business's overseas that deal in more than 75000 in australian sales have to become registered for GST now in Australia and collect GST for the government.

Digital markets selling to australian customers like netflix/prime and so forth have to mandatory collect gst to make digital sales to australians, its really mind blowing, yet the government has not put a single thing in place to make it happen, just tried to push the responsibilty onto the businesses trading with us.

You can see why Amazon went, nope get stuffed, all aussies are banned from buying from overseas stores.

Its a real cluster I reckon

Steve
Steve
Master of nothing,

Do your own repairs - http://www.mirwa.com.au/How_to_Series.html

User avatar
peter.coombe
Blackwood
Posts: 553
Joined: Fri Oct 15, 2010 2:52 pm
Location: Bega, NSW
Contact:

Re: New GST rules

Post by peter.coombe » Thu Jun 21, 2018 6:08 pm

Is a good time to stock up before this comes into effect.
Peter Coombe - mandolin, mandola and guitar maker
http://www.petercoombe.com

Blackstar1099
Wandoo
Posts: 14
Joined: Tue Sep 08, 2015 11:00 pm

Re: New GST rules

Post by Blackstar1099 » Sun Jun 24, 2018 6:57 pm

I've got $500 worth of timber coming from Canada via surface mail soon. I'm wondering if it arrives after 1st July whether I'll have to pay. Will customs be smart enough to let it go by looking at the ship date on the package.

User avatar
kiwigeo
Admin
Posts: 9419
Joined: Sat Sep 29, 2007 5:57 pm
Location: Adelaide, Sth Australia

Re: New GST rules

Post by kiwigeo » Sun Jun 24, 2018 8:01 pm

That's an interesting one.....let us know what happens.
Blackstar1099 wrote:
Sun Jun 24, 2018 6:57 pm
I've got $500 worth of timber coming from Canada via surface mail soon. I'm wondering if it arrives after 1st July whether I'll have to pay. Will customs be smart enough to let it go by looking at the ship date on the package.
Martin

User avatar
WJ Guitars
Myrtle
Posts: 61
Joined: Thu Jan 26, 2017 4:28 pm
Location: Sutherland NSW

Re: New GST rules

Post by WJ Guitars » Mon Jul 16, 2018 11:07 am

Has any one made a purchase since July overseas eg Stewmac, LMI or though Ebay for an order say less than $1000 yet? If so were there any issues / delays in receiving the goods? How does it work when paying the GST and Couriers?

Regards
Wayne

simso
Blackwood
Posts: 1621
Joined: Mon Apr 25, 2011 10:36 pm
Location: Perth WA

Re: New GST rules

Post by simso » Mon Jul 16, 2018 11:29 am

Yep, gst was added on the checkout process on Ebay and Stewmac, have not placed an order with LMII this month yet

Steve
Steve
Master of nothing,

Do your own repairs - http://www.mirwa.com.au/How_to_Series.html

User avatar
Steve.Toscano
Blackwood
Posts: 302
Joined: Thu Feb 07, 2013 11:43 pm
Location: Hunter Valley

Re: New GST rules

Post by Steve.Toscano » Mon Jul 16, 2018 3:19 pm

I did a $200 order with LMI on July 5th, arrived last week, I wasnt charged GST.

Have done some ebay orders and noticed ebay is charging the GST at the checkout like Simso mentioned.

blackalex1952
Blackwood
Posts: 552
Joined: Tue Aug 27, 2013 6:36 pm
Location: North East Victoria

Re: New GST rules

Post by blackalex1952 » Sun Jul 29, 2018 1:47 pm

Stewmac just sent me this email, screenshot attached. Hats off to them for respecting Aussie customers the way they do, and circumnavigating our new GST concept! I have also had very good experience with these guys when it comes to returns or faulty products. Cheers, Ross
Attachments
Capture.JPG
"Everything I say on the topic is based solely upon inexperience and assumption!"

User avatar
kiwigeo
Admin
Posts: 9419
Joined: Sat Sep 29, 2007 5:57 pm
Location: Adelaide, Sth Australia

Re: New GST rules

Post by kiwigeo » Sun Jul 29, 2018 2:26 pm

ROFL...that's sticking it up poor old Gerry Harvey :mrgreen:
blackalex1952 wrote:
Sun Jul 29, 2018 1:47 pm
Stewmac just sent me this email, screenshot attached. Hats off to them for respecting Aussie customers the way they do, and circumnavigating our new GST concept! I have also had very good experience with these guys when it comes to returns or faulty products. Cheers, Ross
Martin

User avatar
WJ Guitars
Myrtle
Posts: 61
Joined: Thu Jan 26, 2017 4:28 pm
Location: Sutherland NSW

Re: New GST rules

Post by WJ Guitars » Tue Aug 28, 2018 11:56 am

Today I received my parcel ordered from LMI. The total cost paid in US dollars was around $809.00 and the shipping / handing cost was around $93.00.00. (No tax added from LMI). The exchange rate to AU dollars at the time of this order would convert to around $1156.00 AU. This being over the AU $1000.00 threshold and I would have expected the 10% GST would apply.

Since July 2018, maybe the new GST rules have not properly kicked in yet? I did look at the 'Home Affairs' website regarding overseas purchases relative to GST and noted comments that implied for private individuals the GST for AU dollars spent over a $1000 would be required. Then I also noted there were other comments that said the GST 'may' applied.

I am very happy to have received these goods without paying the GST, however, its not clear to me how or, if the new GST rules are being applied yet.

Has anyone else made a purchase in August 2018 and had a similar experience to mine?

Wayne
https://wjguitars.wixsite.com/mysite-1

User avatar
Allen
Blackwood
Posts: 5056
Joined: Thu Oct 11, 2007 5:39 pm
Location: Cairns, Australia
Contact:

Re: New GST rules

Post by Allen » Wed Aug 29, 2018 6:27 am

I've not had one order that GST has been applied to, but I haven't ordered from any of the big supply houses.
Allen R. McFarlen
https://www.brguitars.com
Facebook
Cairns, Australia

simso
Blackwood
Posts: 1621
Joined: Mon Apr 25, 2011 10:36 pm
Location: Perth WA

Re: New GST rules

Post by simso » Wed Aug 29, 2018 12:18 pm

I order lots from overseas from various suppliers, some companies are already charging and collecting gst, whilst others are not, I think the government will slowly get everyone collecting but early days, no forwarding company like tnt fedex and so forth have charged me yet on under 1000 dollar purchases.

Steve
Steve
Master of nothing,

Do your own repairs - http://www.mirwa.com.au/How_to_Series.html

User avatar
kiwigeo
Admin
Posts: 9419
Joined: Sat Sep 29, 2007 5:57 pm
Location: Adelaide, Sth Australia

Re: New GST rules

Post by kiwigeo » Wed Aug 29, 2018 9:03 pm

Government far too busy trying to work out who's in charge :mrgreen:

simso wrote:
Wed Aug 29, 2018 12:18 pm
I order lots from overseas from various suppliers, some companies are already charging and collecting gst, whilst others are not, I think the government will slowly get everyone collecting but early days, no forwarding company like tnt fedex and so forth have charged me yet on under 1000 dollar purchases.

Steve
Martin

Gazm
Blackwood
Posts: 101
Joined: Sun Sep 04, 2011 11:25 am

Re: New GST rules

Post by Gazm » Mon Sep 17, 2018 4:25 pm

I recently received a small package from Stew Mac $380 USD with NO GST violations,Thank you Mr Morrison.
Ordering a package thru Canada shortly, so will keep it under the grand mark to test the waters!!

Gaz

User avatar
kiwigeo
Admin
Posts: 9419
Joined: Sat Sep 29, 2007 5:57 pm
Location: Adelaide, Sth Australia

Re: New GST rules

Post by kiwigeo » Mon Sep 17, 2018 6:53 pm

The steam heritage railway I volunteer at here in SA just received a 100 litres of valve oil from the UK...no GST applied.

The current government is too busy working out who's in charge to be worried about GST and other matters.
Martin

User avatar
Allen
Blackwood
Posts: 5056
Joined: Thu Oct 11, 2007 5:39 pm
Location: Cairns, Australia
Contact:

Re: New GST rules

Post by Allen » Tue Sep 18, 2018 4:39 pm

SM order today and no GST.
Allen R. McFarlen
https://www.brguitars.com
Facebook
Cairns, Australia

Bruce McC
Blackwood
Posts: 334
Joined: Thu Apr 07, 2011 1:29 pm
Location: Canberra ACT Australia

Re: New GST rules

Post by Bruce McC » Tue Sep 18, 2018 9:14 pm

I received an order from StewMac a few weeks ago and was charged a tax of 10% of the value of the order. This tax was itemised on the invoice under Ohio Tax. Previous invoices from StewMac have not shown any such tax. :( :o
Bruce Mc.

User avatar
J.F. Custom
Blackwood
Posts: 763
Joined: Fri May 01, 2009 9:13 pm
Location: Victoria
Contact:

Re: New GST rules

Post by J.F. Custom » Tue Sep 18, 2018 9:28 pm

Being early days, it depends where you buy from.

It is actually the responsibility of the company you buy through to charge GST, as far as I can tell. It also applies to all purchases now - not just those over $1000 AUD anymore.

I've been charged GST on the last several international purchases, for example:

Any transaction on eBay (that ship from overseas) now automatically charge GST. Even if the item is just $5... I bought a lens for my phone, as an experiment simply because it was $5, with free freight to my door from China. Now how can the product made from glass and anodised aluminium, be produced for $5, let alone be shipped? So I tried it fully accepting I may lose my $5. Turns out, it was $5.50, because eBay charged GST. Lo and behold, three weeks later a lens was delivered to my door. Go figure. Minimum Australia post charge is $8 something for us in Australia - not including the contents!

I also purchased from a Vinyl Shop in UK (that's LP records yes? not flooring...) sub $100 and even their system charged the GST (not VAT) on checkout.

So it is just a matter of time before all of these purchases be that $5, $500 or $5000 will be charged GST. They are just catching up.

Ride the luck while you can!

Cheers.

User avatar
matthew
Blackwood
Posts: 1162
Joined: Mon Oct 08, 2007 1:16 pm
Location: Sydney, Inner West
Contact:

Re: New GST rules

Post by matthew » Wed Oct 10, 2018 9:28 pm

My experience of late.

I had a few imports shipped through DHL. Both over AUD $1000 but not much. None of my suppliers (USA,Germany, India) charged GST.

On each shipment, I was hit with GST, duty (on ebony and some tools) and an $83 customs fee, all to be paid up front for the shipment to be released to me.

Its this last $83 fee that stinks the most, so i made a few enquiries, and the DHL person told me this fee is only applied to shipments over $1000. Less than that, it seems, they just let things through. This is consistent with other imports i have done less than $1000, it just comes through.

This isn't what the legislation says, but it seems DHL can't be bothered collecting tax on anything under $1000.

Ironically i consolidated my import shipments to take advantage of shipping economies, but it seems this advantage is rather eaten up by the taxes and charges. So I think i'll go back to buying one thing at a time.

ArmstrongLutherie
Wandoo
Posts: 14
Joined: Mon Jun 16, 2014 5:48 pm

Re: New GST rules

Post by ArmstrongLutherie » Wed Oct 10, 2018 11:51 pm

Like Bruce experienced my recent StewMac orders have included a 10% Ohio Tax which I assumed is how they use their existing systems to collect GST. Whether or not they pass it on the the ATO is an unknown.

User avatar
matthew
Blackwood
Posts: 1162
Joined: Mon Oct 08, 2007 1:16 pm
Location: Sydney, Inner West
Contact:

Re: New GST rules

Post by matthew » Thu Oct 11, 2018 7:08 am

well the prob with that is you cannot claim the tax unless you have a tax invoice from them...

Post Reply

Who is online

Users browsing this forum: No registered users and 29 guests