http://www.news.com.au/money/cost-of...-1226467068178

ONLINE shopping could be set to get more expensive after a review recommended new tax levels for cheap imported parcels.

Under current mail arrangements, GST is generally only charged for overseas packages worth $1000 or more, because the amount of money spent recovering tax on cheaper goods was thought to outweigh revenue collected.

But a government taskforce recommended the threshold be lowered, after finding that this could be a cost-effective way to raise money and even the field for domestic retailers.

The government has received the report and will now talk to the retail industry before outlining a response.

Shop owners have applauded the findings, after arguing that customers were flocking to the internet for cheaper prices that weren't taxed in the way domestic goods are.

The report by the low value parcel processing taskforce found that the number of parcels coming into Australia was "growing rapidly''.

"The number of parcels in international mail has more than doubled between 2006-07 and 2010-11 to more than 48 million,'' it says.

"Similarly the number of low value goods arriving as cargo was around 10.6 million in 2010-11, an increase of more than 58 per cent since 2008-09.''

The group's modelling found that charging tax on parcels under $100 was not cost effective, but it could be worth putting GST on higher value goods.

It recommended "the application of simplified GST assessment arrangements for low value imported goods between a separate low value GST threshold set above $0 and below $1,000''.

To do this, Australia Post and other mail handlers would have to be in charge of collecting money
I don't think it will make any difference.
Online purchases save a lot and 10% won't make any significant difference.

Gerry Harvey can't think a 10% GST will change anyone buying online when his stuff is 200% more expensive