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sapperastro

Has Airfix gone Hollywood?

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How can Australia impose a tax on an item bought from a company in the UK?

 

It would be like HMRC imposing VAT on purchases from HLJ.

 

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I haven't gone into the details of how it is implemented, we have only recently had an email from Australia telling us we have to do it. But there will be a fairly large cost in getting our computer programme modified which I assume we have to bear and yes, we will certainly not be keeping the 10%. And due to exchange rate fluctuations even that will not be simple.

David Hannant

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All I'm gunna say is thank god the stash is big enough to last the next 50 years cause people who don't care about what I like seem to do their best to make it hard to keep adding to said stash 😂

I won't make a political statement but I'm flabbergasted that a o/s company has to do that.

i can see a huge number of business outside Australia just not selling to us making it even harder to get stuff that we can't get locally (or at a reasonable cost)

just saying.

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Its not just Airfix prices are higher, Italeri and Revell seem to have rocketed too! Let alone the Hasegawa kits ...welll thats another story often talked about here . 

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Some overseas companies have said that they will only implement the Australian tax collection scheme if they are reimbursed for their time. If a company will not implement the scheme there is little the Australian Government can do to force them. They will then try and collect the tax by ransom (similar to the UK). This has been estimated to cost approximately $1.15 for each dollar recouped. The big business lobby is quite agreeable to this cost as it is borne by the taxpayer.

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9 hours ago, 666nimrod said:

I haven't gone into the details of how it is implemented, we have only recently had an email from Australia telling us we have to do it. But there will be a fairly large cost in getting our computer programme modified which I assume we have to bear and yes, we will certainly not be keeping the 10%. And due to exchange rate fluctuations even that will not be simple.

David Hannant

I'd look VERY carefully at the source of that email if I were you.

 

While Mr Harvey and others have been moaning and whinging up a storm, this hasn't been widely publicised here and I'm unconvinced that it's been legislated at all

 

Shane

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10 hours ago, Truro Model Builder said:

It would be like HMRC imposing VAT on purchases from HLJ.

 

They do, or should do. All overseas purchases outside the EU should have local taxes removed at point of purchase and HMRC at point import should add UK VAT.

 

Thomo.

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2 hours ago, Shane said:

this hasn't been widely publicised here and I'm unconvinced that it's been legislated at all

It has - it's on the ATO website here. It looks like this is on its way from 1 July and we're stuck with it. 

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1 hour ago, zebra said:

 

It has - it's on the ATO website here. It looks like this is on its way from 1 July and we're stuck with it. 

Yeah, found it after I posted, then couldn't recall WHERE I posted. Stuck indeed. Thanks be to the cross benchers who demanded it, and the major parties who "caved against their wishes" because they'd be able to blame someone else for any pain while taking the money to waste on the stupid idea of the day

 

Shane

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I think the overall market is just evolving and has more way to go. I believe what we're seeing is globalisation in action.

 

The days of the model shop are probably numbered unless some significant value is being added by that entity. Just what value is added by having a bricks and mortar retail outlet now that people can buy exactly what they want, when they want it from wherever they want it and get it sooner and a bit cheaper?

 

Businesses actually making the products still add value. Very large retailers like Hannants have relatively massive spending power compared to near enough everyone else and thus can add value by economising on scale of imports. Importing en-masse is still adding value because international shipping individual packages is disproportionately expensive compared to the product value, and it's right that they make a margin because importing things otherwise is just rendering your money insolvent for long periods at a time - you just don't do that unless you make a healthy return on it.

 

This isn't to make model shops out to be the bad guys at all. It's possibly more an explanation as to why so many local model shops decide "you know what, there are a million easier ways to remain poor than dealing with all this poop 70 hours a week". Some prevail and more power to them. Many of those have diversified to distance selling too. Wonderland Models in Edinburgh offer much more on their webstore than is available in the shop and at better prices too. Marionville Models ditched their bricks and mortar shop in Edinburgh and moved out to a unit by Livingstone (one can presume the shop premises was just draining the money they were making by other channels? - that's certainly what the sums said to us when we looked at doing it).

 

I guess in conclusion what I'm saying is that the market continues to change. Shops selling Airfix in Australia are probably not trying to milk the customers and are more likely pricing modest stock levels such that they make their usual margins. If they can't make the same return on investment on Airfix then why tie up their money in Airfix stock when it could be used for something else - apart from the desire to have a wide range of products to entice customers in in the first place. That rounds us nicely back to there being a million easier ways to not get wealthy than running a model shop though. Cups of tea and coffee with drop-in modellers neither gets any administration work done nor pays any bills unfortunately, and anyone in the business with any commercial sense whatsoever knows this.

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Posted (edited)

An an Australian, I’m very, very annoyed about what I’ve read here about our government forcing a private company in another country to collect THEIR tax. 

 

I only buy stuff online that I cannot, repeat cannot easily get locally, so now have to suffer because of the government wants to keep the Gerry Harvey’s of this world happy. 

 

(Insert boiling blood sound effect here).

Edited by Ryan Hothersall

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13 hours ago, zebra said:

 

It has - it's on the ATO website here. It looks like this is on its way from 1 July and we're stuck with it. 

Yes it sucks and on top of that, there is now some talk to charge a fee of A$5 for EVERY incoming parcel to go towards the ballooning cost of quarantine inspection of incoming parcels :locked:

 

BUT not all overseas businesses have to charge Australian GST as it clearly states in the linked document above:

"Businesses that meet the A$75,000 registration threshold will need to take action now to review their business systems to ensure that they are able to comply."

 

So any business having a turnover with sales to Australia of less than A$ 75,000 don't need to charge the GST. And I would think that most of the "cottage producers" are in this category.

 

I too can envisage that some sellers will no longer post to Australia and that local prices will increase sharply due to reduced competition.

 

What I would like to know is what happens if a business doesn't comply... Interesting times ahead for us in Australia.

Cheers, Peter

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Gents

I don't want to disregard anyone opinion, but I don't think the Australian government can dictate tax in other countries.

What it can do is tax it the moment it arrives to Australia and then we need to collect the GST. Otherwise you are just assuming someone in another country will be willing to do all the hard work to collect a tax for you and just send it here.

It doesn't make any sense to me, sorry!

 

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1 hour ago, Basilisk said:

 

 

What I would like to know is what happens if a business doesn't comply... Interesting times ahead for us in Australia.

Cheers, Peter

The Australian Government will send us their convicts? 😉

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Well they're sending convicts to New Zealand at the moment so don't joke to much:mellow:

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C'mon fellas, how can the government cover the costs of their hard fought for corporate tax cut they are proposing without something to fill in the gap?

 

Think about our poor CEOs here guys.

 

In any case, I have heard the extra surcharge will be $7 not $5.

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Remember this Australian government were the ones who as I have witnessed, ( and God knows how many other times ) flew a government minister to Adelaide from Canberra on a Bombardier Challenger, then returned empty to the nation's capital so the crew could sleep in their own beds only to return the next day empty once more to pick up their distinguished passenger and return him to "work".  It's no wonder that they need to resort to "Ebeneezer Scrooge" tactics to support their extravagant lifestyle.  Enough politics, but in all seriousness this will curtail my purchases if it comes to pass.

 

  Trev. vh-bob

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7 hours ago, ArmouredSprue said:

the Australian government can dictate tax in other countries.

What it can do is tax it the moment it arrives to Australia and then we need to collect the GST.

That's the intention.............

(1) If companies agree to act as tax agents for the Australian Government, then the tax is collected at the time of purchase - at no cost to the government

(2) If they don't - the parcel is seized at entry and ransomed for the  GST (and perhaps another $7)

(3) if the parcel is worth next to nothing there is no GST - just the $7 fee

 

A cynic might say this helps to pay for the $30bn of company tax cuts (and presumably some sort of hand-outs for  the 700+ companies that pay no tax in Australia - like Google and Apple). It must be awful to see tax cuts and know you can't take advantage from them because you pay no tax.

http://www.abc.net.au/news/2017-12-07/corporate-tax-data-released-by-ato/9236878

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I believe the overseas tax grab thing is coming to NZ to if not already, its sure been discussed enough. We already pay it on anything from Aus I believe, least wise I don't get GST back from my BNA purchases & have long assumed its a CER thing. Luckily I've got most of what I want laid in already. :) 

Steve. 

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Strange isnt it, being 43 years old now and remembering the time before internet when some kits were difficult to buy - the great promise of the internet was to be free trade and the availability to buy anything from anywhere at anytime  but it has never been this way "They" have simply applied more road blocks and restriction to stop the flow of goods across borders and push up the price of postage to make it unaffordable to buy abroad so we get the situation where a polar lights 22" space 1999 eagle is $99US but £150 in the UK, We have gone backwards in this regards and nobody wins, the model companies sell less and generate less revenue and the respective governments lose potential local sales taxes .

 

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Looking at the overall picture, I believe that every state, including Australia, has every right to impose on any good entering the country the same taxes imposed on goods sold within the country. If I buy from a local shop I'm charged GST or VAT or whatever this tax is called in my country, why shouldn't I be charged the same if I buy from a foreign shop ? Such a situation introduces a discrimination against the locally based shops that have to charge GST/VAT while foreign based ones don't .

And pretty much every state imposes the same taxes on goods purchased from abroad, with every state following their own way of doing it, some are better suited to the final custemer and others aren't. For example in Italy it's courier or mail service that pays the sum and then charges the buyer with the same cost, generally with no additional cost. When the delivery man rings my bell, he will present me a bill for VAT, I pay directly to him and get a receipt and my goods. Easy enough. In the UK there's the infamous handling charge added on top of VAT, that makes buying small values object less tempting. Now we have this new approach from Australia that IMHO has pros and cons.

From a customer point of view to be honest I think this is brilliant ! I place an order with say Hannants, they charge me the GST and deal with all the troubles. Yes, I may not be happy to have to pay a tax that however anyone else is paying if buying locally but really, I know what I pay and I get the goods with no drama. Considering that the 10% GST is on a VAT-free price I'd say this is still pretty convenient, would mean paying less than what I pay when ordering from the same shop but from the EU. I'll be very honest, I'd love to see a similar system in place in my country rather than having to pay the delivery guy or paying at the post office if I'm not at home when the goods are delivered.

Different story for the foreign based shop though ! I can see how many may not agree on collecting taxes for the Australian State, it's an added complication that has a cost for the business. Guess that in the end most purchases will have GST collected at Australian customs. Luckily if will just be the GST without the $7 handling charge.

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Ebay have a system where you can pay the vat on a foreign  purchase so when the goods come into the uk the royal mail has been paid the outstanding vat and you dont get hit with the £9 handling charge and the gods are not slowed down by red tape,  so it can be dealt with at vendor level .

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The 10% doesn't bother me - neither here nor there. I'm more concerned about whether our government expects others to collect it.  That just might be enough for some business (quite rightly) to not sell to us.  I simply don't have a local (within 3.5hrs or further) hobby store to buy just about anything.  Which means I buy online and to be frank it's just plain cheaper o/s most of the time.  And I'm  not saying I save a dollar or two it can be half the price or better and postage can be cheaper than from within Australia. It just cost me $27 to send a 1kg package within Australia- I can just about get that sent from most places to me for that price or less.

And online gives me a choice not available except at a few stores in Australia (and some of them are online only as well) and those stores aren't in my state let alone near me.

We are unique cause we really are a heck of a long way from everyone else 👍

In spite of all the above I still buy local whenever the price is ballpark with o/s and some sellers are very good with postage prices ect and I understand it costs more here for lots of reasons - this new tax regime is just another obstacle to increasing ones stash.

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Posted (edited)

I am a bit surprised at the attitude of some of the obviously well heeled modellers who are "not worried about the cost increase" as my original point, before the news of our government's piratical policy broke, was that kit prices in my opinion were already too dear and rising fast.  This is born out ,at least in this country where inflation and wage increases are both at an all time low so how come each new Airfix release, for  example is a dollar or so dearer than the last. We certainly do not need "Big Brother" getting his sticky fingers deeper in to our pockets than he already does. In light of this, news of Mikro Mir producing the colossal Kalannin K-7 was immediately tempered with the knowledge that I most likely wont be able to afford the bloody thing tax or no tax to say nothing of the postage.

 

   Trev.   (vh-bob)

 

 

 

Edited by vh-bob
Spelling mistakes

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4 hours ago, vh-bob said:

I am a bit surprised at the attitude of some of the obviously well heeled modellers who are "not worried about the cost increase"

 

where inflation and wage increases are both at an all time low

10% isn't really that much........... 10% +$7 may be a bit much for a small purchase.

 

All-time low? Yes, according to the government but 'real' inflation like at the supermarket (and model shop) is a bit more!

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