Industry power broker Solomon Lew has used the downfall of Fletcher Jones, Colorado and Bettina Liano as ammunition in the GST/Low-Value Threshold (LVT) review.
The three fashion companies were all forced to appoint administrators in the last 18 months after falling into financial hot water.
Speaking at the Premier Investments AGM in Melbourne this morning, chairman Solomon Lew maintained the LVT for purchases made offshore online should be abolished.
"No Australian online business is capable of reaching its full potential while a flawed two-tiered tax system remains in place.
"The Low Value Processing Taskforce, put in place by the Government, recently found that the Low Value Threshold, or LVT, for purchases made offshore online should be abolished.
"But still we have no action from the Federal Government.
"Over a year ago, The Productivity Commission found the same. Again, no action.
A substantial number of domestic retailers have failed in the past 18 months: Borders, Angus & Robertson, Colorado, Jag, Bettina Liano, Brown Sugar, Fletcher Jones to name a few. Still no action.
"According to ABS data 22,600 retail jobs have been lost in the same period of time. Again, no action."
Yesterday, the Federal Government announced it needed more time to assess the impact of changing its current LVT policy.
Currently, purchases under $1000 arriving into Australia are exempt from tax.
Last week, a review headed by two former state premiers recommended this be reduced to a nominal level of no more than $20 or $50.
Lew alleged a recent report by Ernst and Young, commissioned by the National Retailers Association, claimed that 30,000 retail jobs could be saved by levelling the playing field on LVT.
The report estimated that 118,000 retail jobs would disappear in the coming three years due to structural changes taking place in the industry.
"We need immediate action from the Federal Government. In every other comparable country, governments have recognised the need to deal with this issue as a serious matter of public policy and have already acted – while our government plays ‘process’ games.
"Every additional day is a day too long when you are dealing with internet sales."
Lew claimed traffic to Premier Investments' brands had grown by over 59 per cent over the last 12 months to 22.5 million visits.
"I expect this growth to continue exponentially – which is why the policy settings to encourage local online stores must be right.
"It is very hard to compete when your own government is on the side of foreign competitors."
Premier is the owner of major fashion brands such as Just Jeans, Jay Jays, Peter Alexander, Dotti and Portmans.
PORTMANS: Part of the Premier Investments stable.
