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Retailers highlight all- round economic benefits of reducing LVIT
- State treasurers asked to support service delivery, industry growth
Peak retail industry body the Australian Retailers Association (ARA) last week sent a letter to state and territory government treasurers, highlighting the governments Parcel Processing Report has now confirmed they can collect significant revenue as a result of the recommendations over the $1000 low value imports threshold (LVIT).
Australian retailers continued to trade on the back foot compared to their overseas counterparts having to charge GST in their Australian bricks and mortar and online stores while their overseas counterparts did not.
ARA Executive Director Russell Zimmerman said the ARA was working alongside nine other associations and asking for support from states in assisting the Federal Government to rectify the revenue and tax neutrality issue affecting both the retail sector and service delivery.
"The ARA is continuing to take a collaborative approach to addressing the issues in the Low Value Parcel Processing Taskforce's final report, which outlined an economically beneficial path to reducing the threshold to an acceptable level over time.
"The ARA is calling on the Government to implement the report's recommendations as soon as practicable and state and territory governments to support the process given the obvious win-win situation for both the economy and Australia's $240 billion retail sector.
"The current situation makes a loser out of the Australian economy given it impacts on both government service delivery and industry growth. The path sketched by the Taskforce to reduce the threshold is a 360 degree turnaround for this 'lose- lose' economic situation," Zimmerman said.
ARA has been pleased with the positive responses from most if not all of the State and Territory Treasurers and is seeking additional meetings to finalise the reports implementation including urgently having the process put on the next Commonwealth of Australian Governments' agenda (COAG).
"With COAG working on implementation along with Australia Post and Customs doing the Reports recommended due diligence work there is no reason why this report couldn't be implemented within 12 months," Mr Zimmerman said.
The organisations working with ARA are;
Australian Booksellers Association
Bicycle Industries Australia
Photo Marketing Association
Australian Music Association
Photo Imaging Council of Australia
Retail Cycle Traders Australia (Inc)
Australian Toy Association
Australian Sporting Goods Association
Franchise Council of Australia
A meeting took place between the associations last Thursday and brought to the table key concerns relating to lost revenue to state and territory governments as well as the tax bias presented to Australian based retail businesses.
Since 1903 the Australian Retailers Association (ARA) has been the peak industry body representing Australia's $240 billion retail sector which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5000 independent and national retail members throughout Australia.
Visit www.retail.org.au <http://www.retail.org.au> or call 1300 368 041.
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