Karen Collier
November 27, 2013
Herald Sun
ONLINE shopping is growing at seven times the rate of bricks-and-mortar retail as customers swap cash registers for clicks.
Internet-obsessed Aussies are spending $14.3 billion a year – an annual surge of 17.4 per cent, latest NAB data shows.
About 27 per cent of that was funnelled to overseas sites.
The growth comes as retailers and state treasurers lobby to slug consumers an online shopping tax on imports worth less than $1000.
PayPal spokesman Adrian Christie said online consumers wanting convenience, better product ranges and cheaper prices clamoured for fashion, electronics and cosmetics.
Most Australians will receive up to six parcel deliveries this Christmas, the payment processor says.
“Online Christmas spending will be a record, and PayPal customers are forecast to buy one in three gifts with a smartphone or tablet,” Mr Christie said.
Retailers want the Federal Government to slash the $1000 GST-free limit for offshore purchases to as low as $20
But consumer group Choice warned the cost of buying a $20 product from overseas could blow out to $35.60 if Australia adopted a similar collection fee to the United Kingdom.
“Courier companies would turn into doorstop tax collectors, and that cost of collection would be passed on to consumers, ” campaigns director Matt Levey said.
“There are proposals that would charge consumers over $13 for the Government to collect as little as $2 in revenue. That’s just ridiculous.”
Mr Levy said GST should only be applied to low-value goods when parcel-processing reforms reduced tax-collection costs.
Australian Retailers Association executive director Russell Zimmerman said foreign rivals were getting a free kick from an unlevel playing field.
NAB’s online retail sales index reveals online department and variety stores are the strongest growth categories. Its research excludes online ticket purchases and hotel bookings.
Combined domestic and foreign online buys are now 6.3 per cent the size of traditional retail, excluding cafes, restaurants and takeaway food. That is tipped to double by 2016.
Penelope Liersch, 20, of St Kilda, said: “Online shopping makes it a lot easier to see everything that’s on offer. You can shop any time and take your time to browse, and it’s good for those who are pushed for time and can’t shop regular trading hours.”
Treasurers say state Budgets are being robbed of more than $1 billion a year in GST revenue.
About 60 million tax-free international parcels enter Australia each year.
But a Productivity Commission review in 2011 concluded it would cost more to check parcels and apply the tax than what would be raised in revenue.
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