Small merchants at risk from online shopping

The tall poppy syndrome is alive & well nationwide & so the recent backlash displayed towards Gerry Harvey & Cate Blanchett, due to their roles in the online GST & carbon tax campaign, is really a typical example of it.

We, as Aussie's, have a wish to reprimand & denounce the successful, even though it's for the greater good of our own country and long term wellbeing.

Cate Blanchett was named an "out of touch" movie star after showcasing in the marketing campaign that promotes the Labor government's plan to bring in a carbon duty in July the coming year.

Terri Kelleher, of the Australian Families Association, shamelessly weighed in on the controversy saying "it's nice to have a multi-millionaire who won't be impacted by it telling you how great it is," knowing full well there'd be generous help for low & middle-income households.

HARVEY Norman leader, Gerry Harvey additionally faced an avalanche of criticism for his role to have GST imposed on on-line purchases from offshore internet websites. Mr Harvey said the "vicious & hateful" attacks had become personal and were something he could "do without"

Currently, no GST is charged on the internet transactions from foreign internet websites, provided they are valued below $1000. Australia forgoes around $2.5 billion annually in GST and duty on internet sales.

Dane Westo from Mate of Mine Local Business Directory, states "HARVEY was right," the federal government ought to set a goods and services tax on products purchased from abroad online merchants & that it'll bring economic power back to local regions.

Civic economics states that whenever you spend $100 at a completely independent small business, $68 returns to the local community by means of income taxes, payroll & other expenditures. If you spend that within a national chain, only $43 stays here, "spend it internet and nothing comes home," says Westo.

Imposing a goods and services tax on on-line transactions from abroad internet websites would not only offer retailers a "level playing field" but also "force them to be more aggressive in the market place, which means far better deals to the customer."

At the moment there is an worrying trend of customers making use of retail stores to undertake a pre-shop & then go home to purchase internet at the best price. Lets call this "fissing". Not merely is "fissing" morally wrong, that you take up any time and space from the brick and mortar retailers, but "you're virtually robbing local independently owned companies of revenue which are instrumental to the economy, employing residents and paying our taxes, all for the sake of salvaging a few extra dollars."

Globalisation is hammering retailers just like it has struck other industries. Retailers need to "pick up their game" & think of innovative ways to get people back in their shops.

Internet purchasing continues to grow at a phenomenal rate in the next few years, imposing a goods & services tax on online transactions from abroad internet websites would likely do very little to slow this trend, but would certainly "close the gap" & competitive advantage involving abroad online merchants.