Australian Retail Redoubles GST Fight

by Mary Swire, Tax-News.com, Hong Kong

18 January 2011

The Australian National Retail Association (NRA) has said that recent Australian Bureau of Statistics (ABS) data reflected the anaemic state of domestic retail trade throughout 2010, and debunks the notion that retailers are simply “crying poor” about the unfair tax loophole for offshore traders.

“Whether they are online, ‘bricks and mortar’ or a combination of both, Australian retailers in 2010 suffered through one of the most difficult years in memory,” said Gary Black, Executive Director of the NRA.

Mr Black said the November figures showed the need for the Federal Government to address urgently tax rules which are said to give overseas retailers an unfair advantage over Australian businesses. He said retailers exploiting the AUD1,000 GST threshold also avoided paying tariffs, import duties and customs charges – all of which were levied on ‘bricks and mortar retailers’.

“This ABS data shows the urgent need for the Australian Government to step in and level the playing field for local businesses. This is not about protecting big business, or trying to close out online retailers. This tax loophole also discriminates against Australian-based online retailers, and hurts small, family-run businesses just as much as large chain stores."

“Neither is this about a return to protectionism. Retailers aren’t asking for any advantage. They simply don’t want to be put at a disadvantage compared with overseas-based companies."

The NRA’s analysis of the retail trade figures showed growth of just 0.77% in spending compared with November 20009. Mr Black said the Federal Government, Reserve Bank and media should pay close attention to the retail trade results, as they reflected a sector that had struggled through 2010 and was continuing to face tough times ahead.

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