Public Forums | General | Australian Shipping

9

missgypsy

Hey Hey


As on July 1, all international purchases shipped to Australia will incur GST - does anyone know how/if this will effect Hanson.net purchase? Will shipping Increase?


8

robinbond

Shipping (packaging and postage) is a cost levied by HNET. Legislation passed in Australia has no effect on that. The only thing that has an effect on the cost of posting the parcel from HNET is the exchange rate of one's local currency to the American dollar.

HOWEVER, General Sales Tax will effect the amount you pay at the post office there for collection. I believe it is calculated as the tax percentage of the local cost of the item. I'm being ambiguous -- let me try again.

For example here we have VAT (Value Added Tax), which I thought replaced GST, but it is apparently an added cost. I paid probably close to 700 rand for my Hanson hat (with postage) when I multiply the cost in USD by the exchange rate. Collection for the item was something like an extra 212 rand, which is probably about 30% of the item, but then again, the VAT percentage was increased in the government budget last year.

Chantal, Diana and I learnt how it works when we ordered something like seven shirts and a couple of books together. Even though the order didn't come complete, we still got an absolute shock at a collection fee of over 1500 rand! We thought the fees were levied on weight, but since they are calculated on cost... I'm rambling...

So to summarise, it won't cost you more in the HNET store, but when you collect it is when you will incur those costs.

8

bcat

Lisa Lloyd
CBD, Auckland, NZ

We have had the same issue arise in NZ recently. Orders below a certian value are exempt. And technically unless they have sales over $60,000 in NZ they are exempt from GST as a company (they will have to register for GST and pay if it goes over this). I assume Australia will work in a similar way. I've jokingly given the NZ Street Team a max expenditure per person per year to keep it exempt but obviously there's not much we can do about it in reality, it will be whatever it will be. If it gets held up at customs then you got to pay for it's release unfortunately.

5

EJWillis

Emma Willis
Christchurch, Canterbury, NZ

Lisa - the "Amazon tax" still hasn't been passed through legislation so hopefully there will be some smart person amongst the government that stands up and says no and it doesn't become a thing!  So many companies will stop shipping to NZ if it gets passed because they won't want to deal with having to have an IRD number, apply for GST, file returns etc etc. GST has been charged on incoming parcels for a long time but the way it's calculated gets really confusing! You only pay duty/GST on purchases from overseas if the cost would be over $60NZD. But also, currently a lot of parcels slip through without having GST/duty imposed. I purchased my bridesmaids dresses from overseas back in 2014 and it should have been about $75 of GST and then duty etc on top of that but I didn't get charged anything. Also, GST would be charged on the shipping cost here, no idea how Australian tax works so can't even answer that question! 

8

bcat

Lisa Lloyd
CBD, Auckland, NZ

can you tell I only read the one article about it? ok, all that for if it gets passed haha

8

bcat

Lisa Lloyd
CBD, Auckland, NZ

ps. Robin GST is Goods and Services Tax here

5

EJWillis

Emma Willis
Christchurch, Canterbury, NZ

I get updates at work, that's the only reason I know so much. Haha. And even then it's vague knowledge because I'm not yet fully GST trained. 

Anyway,  under the current rules GST would be charged when the items arrive in the country so we wouldn't be paying more when purchasing off H Net but rather when collecting in the destination country. I guess it would be the same for Australia. If our "Amazon" tax comes into effect then the sellers would have to charge GST so if H Net happened to sell more than $60k NZD annually they would have to increase their prices to account for our sales tax. And frankly, that sounds like a nightmare for a small business! But, it would take a lot of merch to reach the $60k mark to NZ! So long as they don't start selling diamond jewellery, household appliances and cell phones we should be good *CLE* 

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