Heads or (Re)Tail?

Reading the news online today, I found an article on The Age’s website about how Visa declined to be the GST collector for the Australian government. Firstly, I would like to thank Visa for refusing to be the government’s tax dog. But more importantly … how stupid can our government be? I would like to have a strong retail sector, but not one which is built on ripping off customers and antiquated business models. So let’s take a look:

CLAIM #1: Online sites are killing local retail

Bullshit!

Firstly if online shopping is such a revenue boost, why not join the party? Australia’s 2 largest department stores – DJ and Myer – only opened up an online store within the last 12 months. This is 2011 people.  They waited an entire decade after online shopping became commonplace and I have to pay for it? I don’t think so. Even today, their sites offer no search function and only feature part of their catalog. If you go to both their websites, you will be greeted with “shop online” message in size 40 font plastered across the middle of the screen, as if this is some sort of innovative service from these retail T-Rexes. Who doesn’t have an online store? Oh yeah, Harvey Norman, the loudest bleater of them all doesn’t. Past midyear 2011 and HN only sells in a physical shop. No wonder they are going under.

Secondly, many, if not most of online transactions in Australia, are with Australian retailers. These transactions are subject to GST.

CLAIM #2: We are not competitive due to GST-free overseas sites

Garbage!

I am now looking to buy a DSLR camera for my daughter. On amazon.com, you can find it for $700. The cheapest I found it in Australia is $1300 (unless I shop for a grey market product). So even with GST and shipping, I will still be hundreds of dollars in front.

I recently bought a Circulon casserole from amazon.com for $60. DJ, I would estimate (as I cannot tell due to their website not listing it) it would cost around $150.

A couple of months ago I bought my son a pair of Nike runners for $85 from eastbay.com. The Nike outlet on Smith St. had it for $220. 

So why buy from them? Do they think I am stupid?

In the absence of any form of IQ within the ranks of their executive management, they run to Mama Government for help. Yes … the same government they would chastise for interfering with the free market economy when it seeks to lower tariffs. And sadly, the current Government, which lacks any form of backbone and is eager to please everyone, wastes tax payer’s dollars on a monkey-ass idea instead of telling the retailers to wake up and smell the coffee.  Thankfully, Visa has an understanding of the concept of competition and does not want to see thousands of Aussies switching to MasterCard or Paypal.