Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Kiwi Retailers Hit Both Ways under Aussie GST Move


10 November 2016

Media release

Kiwi Retailers Hit Both Ways under Aussie GST Move


With Australia moving to collect tax on low value goods from 1 July next year, Kiwi retailers are facing the likelihood of being hit both ways across the border on the sale of low value goods. Retail NZ says that the release of draft Australian legislation to require foreign companies to pay GST means that now, more than ever, there is reason for the New Zealand Government to act.

“Australian retailers will continue to be able to sell low value goods to New Zealand customers, free of tax and duty, but Kiwi retailers selling their goods to Australian customers will now be required to pay Australian GST,” Retail NZ’s General Manager for Public Affairs Greg Harford said today. "While we endorse the idea of a level playing field for all retailers and accept the Australian Government’s move to charge GST, it’s just not right that our New Zealand Government is continuing to give a massive price advantage to Aussie and oither retailers selling into New Zealand.

“The New Zealand Government’s continued refusal to eliminate the low value goods loophole means that, in some cases, Kiwi retailers have to charge up to 25 per cent more in GST and duty. Our Government is missing the opportunity to level the playing field for retailers and earn extra revenue from foreign multinationals selling low value goods to New Zealanders.

“Retail NZ is strongly advising the Government to act with urgency to follow the Australian lead to require foreign retailers to register for GST if they sell to New Zealanders,” Mr Harford said. “Doing so would be a simple and straightforward solution that would allow goods to cross the border seamlessly, while still allowing our Government to collect the tax rightfully due.

“Offshore supplier registration would not be a perfect solution - but it would be a massive leap forward and help prevent Kiwi firms being displaced from the retail market. Two-thirds of all goods that Kiwis buy from offshore come from just 20 global retailers. These global giants are massive and can easily switch on systems to record and pay tax to the New Zealand Government", said Mr Harford. "Online shopping is growing rapidly, and international etailers should have to pay their fair share of GST – we see no reason for further delay.”

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: