Late last year, Chief Executive of Harvey Norman, Gerry Harvey started to get a little antsy. He complained that local retailers were under threat from online stores and called for online purchases from overseas to be taxed.
Not surprisingly, he found fast support from the major retailers (who also claim to be affected by online retailing) to call for the government to impose a GST on online products that cost under $1000 and to do it fast.
Julia Gillard called for the Productivity Commission to conduct an inquiry “into the impact of globalisation on the retail industry, including the growth of online shopping” The report is due back later this year. But that is not quick enough for some:
According to reports in ARN
Harvey Norman’s outspoken chairman, Gerry Harvey, has claimed many retailers will perish unless immediate action is taken to add GST onto Internet transactions of under $1000.
Speaking at a press conference surrounded by stocktake sales shoppers in Sydney’s CBD, Harvey said the GST imbalance would cost Australian jobs if not rectified as soon as possible.
“There are a lot of retailers that are going to go broke between now and the next three months,” Harvey said. “This has been taken to the Productivity Commission, which will take nine months to look at it and then make a recommendation to the Government.
It is interesting to note that Harvey Norman does not actually have an online retail offering . This is interesting because if they did, perhaps people who LIKE to shop online for the convenience factor, might spend their $$$ there instead of overseas. Just a thought.
A group of major retailers including Harvey Norman, Myer, David Jones, Target, House, Borders and Angus & Robertson have taken to the national newspaper with full page adverts trying to raise support for this new GST.
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