EYE-BALL Guru on – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases –
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– Retailers and bureaucrats don’t understand –
– high A$ value responsible for off-shore purchases –
| Author: EYE-BALL Guru | 4th Dec 2012 |
|The last few years has seen persistent lobbying from Australian Retailers to impose GST on offshore purchases under the current threshold of $1000. In a Treasury study into this offset – the results indicate a confused and conflicted summary. Read story below:
This is a beat-up and the story above goes nowhere near the real reasons at the heart of the problem.
This is a story highlighting a bigger problem than the journalist’s connected with the story – and there are 5 names on the by-line and credits. None were cognisant enough to offer an opinion on what purpose the GST increase would serve, or where the GST offset was in relation to the cost of goods off-shore when compared with domestic prices.
On can only assume that none understood the bigger picture their story is a part of – that being the ‘cash and carry’ trade raping Australia for the last 10 years or so. To read EYE-BALL Guru’s latest post on the ‘cash and carry’ trade – click here.
Shoppers are ever wary and they know that the high value of the $A means they get more ‘bang’ for their ‘buck’ if they buy on-line in off-shore markets. They don’t have to travel to get the advantage but that is a negative for Australian Tourism as well if they do. Off-shore travel is cheaper and less expensive than holidaying in Australia because of the high A$, and one of the main reasons the Australian tourism industry is in the sewer.
Now our smart bureaucracts at the Treasury have failed this Nation for the best part of 10 years – they have failed to forecast to recognise the real cost to the Australian economy as a result of a high A$ value. In recent months the cost of high A$ value has become a talking point, and still they have failed to come up with any policy to reduce the value of the A$ rise and have it return to 30 year averages around A$0.75c.
There is an obvious reason – why would they want to draw attention to the 10 year $1 trillion-dollar export revenue loss under-mining Australian commerce. It has been a gross case of economic mis-management and they still have no idea what they can do to fix the problem.
The pressure coming from the Retailers Association for a change in the threshold level of $1,000 before GST kick’s in – is deterrent value at best.
Reducing the threshold level is a desperate stunt to try and have shoppers return their on-line purchases to domestic retailers. This is such a ‘no-brainer’ of a policy investment. There is no winnable outcome. Shoppers lose, the retailers will still lose, the GST collect will most probably be negative, and all that happens is Australian’s will pay more of goods with nobody in Australia making money.
The report above confirms the confusion on whether the tax collected would cover the cost to impose the tax. So what is the benefit of doing the research if not to appease the ‘screaming’ Retailers Association.
If Australian shoppers can figure out the maths and benefits in the value of a high $A value, we should reasonable expect that the Treasury think-tanks, would be advising the RBA, and in turn the ‘Dunce-hat’ wearing Treasurer Wayne Swan, that the base cause of all Australia’s current and future economic problems all stem from the high A$ policy.
All the high A$ does is make imports cheaper, leading to an impact on the domestic employment market – this has been evident over the past few years where well established business’ have been being forced into closures and/or forced redundancy’s.
This site has from its debut slammed the RBA and the Treasurer for their ‘head’s up their arse’s’ no-care attitude in allowing overseas investors to dominate the A$ value – all to the detriment of Australian commerce and the lessening of A$ revenues for Australian industries.
Tourism was built in this nation on a ‘cheaper holiday’ for overseas visitors because of the low international currency value. 40 years later that industry can’t compete in a global marketplace when our relative costs compared to 40 odd years ago are now among the most expensive in the world.
This GST being asked for Retailers is not the real issue – how can a Government tax increase retail sales if the 10% tax does not match the discount offered by off-shore retailers. If Australian retailers tried to become competitive with off-shore retailers, they would go bust.
This Retailer Association request is deterrent value at best and goes nowhere near offering a solution to the domestic retailer problems.
The fact that the Treasury Dept spent time on this policy initiative demonstrates the mushroom bureaucracy we have – public servants filling their days with research that has no benefit to the economy other than to create the need for more public servants on the taxpayer dime.
The Retailers Association need a good lobbyist – someone who can give them focus on where the problem lies – the high value of the A$. Can you imagine a revolt by miners, farmers, tourism operators, retailers, and the like all joining forces to lobby the Government over the high A$ value?
For as long as the currency remains at these levels – the Australian economy will continue its slide – turning us into an elitist economy where the gap between the have’s and have not’s will widen further.
Here is a message to Mr Wayne Swan and Mr Glenn Stevens – get your head out of your arse and look at the problem without the politics.
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The EYE-BALL Guru …