FED:Online buys prompt retail inquiry

AAP General News (Australia)
12-18-2010
FED:Online buys prompt retail inquiry

The growing trend to shop online to avoid paying GST has prompted a government inquiry
into Australia's retail sector.

The federal government has today announced a Productivity Commission inquiry into the
future of the sector and a crackdown on businesses rorting the system to avoid paying
tax.

Traditional retailers want the government to scrap the one thousand dollar GST-free
threshold for imported goods .. arguing it puts them at an unfair disadvantage in competing
with online stores.

Assistant Treasurer BILL SHORTEN says the case for lowering the threshold has significant
opposition .. including the cost of collection and consumer objections.

He says they are however taking the concerns of retailers seriously and have asked
the Productivity Commission to look into the issues.

AAP RTV mn/sw

KEYWORD: RETAIL (MELBOURNE)

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