The fiercely debated $1000 GST threshold on imports is a minor part of
competition in the Australian retail landscape, with several regulatory regimes
deemed more restrictive in the Productivity Commission's draft report into the
sector.
The industry has been invited to lodge submissions on the freshly
released document, which concluded that regulatory reforms are needed for the
retail industry to "adapt successfully to the more globally competitive market
in which it now operates."
Planning and zoning regulations, trading hours
and workplace flexibility were key areas of concern highlighted by the
Productivity Commission, which launched its inquiry earlier this
year.
The report also claimed Australia lagged behind a number of
comparable countries in its development of e-commerce. The Commission estimates
online shopping represents six per cent of total national retail sales, with
four per cent spent domestically ($8.4 billion) and two per cent overseas ($4.2
billion).
The current level of the low value threshold (LVT) for
exemption from GST and duty on imports was also addressed, following heated
campaigns by major operators including Myer and Westfield.
"The exemption
is judged to be a minor part of the competition story, but GST is a broad-based
consumption tax, and the LVT in principle should be reduced to a low level to
ensure tax neutrality."
To submit to the inquiry and access the entire report click here.