Treasurer Wayne Swan says it's just not Christmas if retailer Gerry Harvey isn't whingeing about soft sales.

The co-founder of Harvey Norman has been highly critical of the rise of international online shopping, which he says is threatening Australian jobs and businesses.   

In particular, he is concerned that online purchases under $1000 do not attract a GST, creating an uneven playing field for local retailers.   


But now the company has joined the offshore online retailing world by launching a shopping portal, based at a Harvey Norman outlet in Ireland, to sell GST-free computer games to Australian consumers.

Mr Harvey says it's highly likely the company will soon start selling tax-free laptops, computers, digital cameras, mobile phones and iPads on offshore websites.

Mr Swan defended the GST threshold on goods bought offshore, saying a Productivity Commission report into the issue found it wasn't the cause of retailers' woes.   

"I can't remember a Christmas where Gerry Harvey wasn't whingeing," he told ABC Radio today.   

"Back when we put the original stimulus package in place he spent a lot of time whingeing about that, but ultimately it did lift consumption in Australia."

Mr Harvey responded, saying he wasn't a whinger and just wanted to protect the whole retail sector, not only his business.   

"To call me a whinger when you are poll-driven, that's just an illusion," he told ABC Radio.

He told Mr Swan: "I've been telling you and your government for a long time ... you have a major problem: the GST. You thought it was more important to think about the votes you were going to get."

Mr Swan said the government was working its way through the Productivity Commission's recommendations.

"It found the cost of actually applying the GST to sales below $1000 was prohibitive," he said.

"It's not a panacea for some of the challenges retailers face at the moment."

Mr Harvey said the commission's report was a waste of time and that he hadn't bothered to read it.   

He said that when the commission's staff interviewed him as part of the consultation process, he got the impression they had "a pre-determined point of view".

"I think it cost us a lot of money for the Productivity Commission and I think we got nothing out of it," he said.

Mr Swan pointed out that not all online shopping was done on overseas websites, saying many of the parcels arriving at post offices came from Australian stores.   

Read more: http://www.smh.com.au/national/swan-takes-a-potshot-at-whinger-gerry-harvey-20111223-1p7xi.html#ixzz1hONUsw7a

Comment
Peter of Subiaco Posted at 9:45 AM December 23, 2011

    When will Gerry get the hint that it's not GST that consumers are trying to dodge by purchasing off-shore? 10% is nothing. If the government did apply GST to purchases <$1000, even after paying $60 shipping + GST I would still be $300 better off on a entry level DSLR camera if I bought it from an off-shore retailer than if I bought it off Gerry (either online or offline). His point about GST being the issue is completely moot. The issue is his 400% markup and greed that he has been getting away with for years and years. Consumers are waking up now and smelling the fresh air. Hey, add 10% GST to my $550 overseas digital camera, I don't care. Harvey normal still want $999 for the same model!


Like you Crook, Peter of Subiaco has no bloody idea either.

400% mark up?????? What a wank.

blackadder wrote on Dec 24^th, 2011 at 7:07am:




So the camera  wholesales  at x dollars.  Harvey Norman marks it up at 400% where as the online shop marks it up at around 200%, or so. (btw I believe the 400% mark up commenter was being GENEROUS)

So, whats your point blackie?

I know of clothing stores that mark up over 1000%.

What IS a normal 'mark up 'black_adder?

Quote:


Name the shop and shame them    

What a sad government this is.

It is just like when the little people complain about a carbon tax and being lied to. What do labor say to us. "You are an extremist"

Quote:

Why. Do you think we have never had it so good?

Vegetable get out in the real world and not the pretend fairyland you live in.

NO retailer of electrical, electronic or camera goods makes anywhere near 400% or 200% or 100% or 50% or 25%. Most if not all electrical appliances stores are running on margins of  around 15%. They rely on volume.

Yes clothing stores do have MASSIVE markups. With some mens shirts landing from China @ $2.25 and selling for $49.95. I don't have a problem with that as they have rent, advertising, wages, insurance, loss by theft, head office overheads etc.

 


Choice says the strong Australian dollar should enable local retailers to pass on savings to their customers.

    Choice demands explanation on mark-ups
    Strong dollar should mean high street savings
    Retailers "should not cry foul" if Aussies go online

AUSTRALIAN retailers must explain why they charge huge mark-ups on products that cost half as much from overseas internet companies, consumer group Choice says.   

And global companies with a presence in Australia prevent local customers taking advantage of cheaper prices offered on their overseas websites, it says.

It comes after a study yesterday found retailers were marking up products by as much as 142 per cent unbeknownst to shoppers, with clothing and shoes the most expensive of the lot.   

In its submission to the Productivity Commission's retail inquiry, Choice says the strong Australian dollar should enable local retailers to pass on savings to their customers.


It has found that the same pair of Nike running shoes costs $240 at a major Australian sports retailer while consumers can buy the same shoes for $134 from an online store based in the US.   

Choice says the top 12 music albums cost 73 per cent more if purchased from the Australia iTunes store instead of the US iTunes store.

But Australians are barred from using US iTunes.

The popular video game Portal 2 for Xbox 360 and PlayStation 3 costs 91 per cent more from a major Australian online retailer than from a website based in Asia.

"There are too many examples, from white goods to motorcycles and TVs to video games, where we pay more," Choice campaigns director Christopher Zinn said in a statement.   

"It's up to those in the supply chain here in Australia to justify why this is the case.

"Importers and retailers should not cry foul if consumers chase better prices, wherever they may be."

Last December, big retailers such as Harvey Norman, Borders, Target and David Jones waged a campaign against the $1000 GST-free threshold for retail products purchased overseas.

They labelled it unfair and argued it would cost jobs.

The National Retail Association representing 3700 small shops followed suit.

The debate urged the Federal Government to announce a Productivity Commission inquiry into the future of Australia's retail industry.

Choice said overseas retailers offered better prices, better service and a much larger range of products.

Eliminating the GST-free threshold would do nothing to dissuade Australian customers from continuing to enjoy big savings from buying online.   

Choice also attacked global retailers with a presence in Australia for preventing the use of Australian credit cards on their overseas sites.

"We are challenging global corporations to drop the artificial technological barriers used to block competitive prices online, such as those affecting software and music downloads," Mr Zinn said.

"There is no reason why Australians should pay more than consumers in comparable countries for digitally delivered items like software."

The Productivity Commission has been asked to report on the current structure, performance and efficiency of the retail sector and the broader issues contributing to the increase in online purchasing by Australian consumers.