Fiverr Forum

Why so much tax?


#1

So i bought a service which was like $99 aud but with tax it ended up costing $114


#2

I see you are from Australia.
Australia has recently introduced a 10% GST for items bought online for under $1000.
Below was taken from vogue.com.au

The Australian government has announced that from July 1, 2018, clothing, electronics and furniture purchased from overseas retailers with a value of under AU$1,000 will also incur a 10 per cent GST. As we reported in 2015, the introduction of the tax was originally slated for July 1, 2017.
Up until now goods bought online in Australia from foreign retailers were exempt from GST if the total order value was less than AU$1,000. Often, this made it substantially cheaper to purchase products from overseas, rather than Australian retailers—whether online or bricks-and-mortar. In a bid to even the playing field for local retailers, GST, or the “protectionist tariff,” will be rolled out to all carts.
The catch? “The new online tax will only be collected from self-declaring overseas retailers with turnovers of more than $75,000 and the Australian Tax Office has no power to punish those beyond the ATO’s jurisdiction,” reports The Sydney Morning Herald. “The tax is designed with the near impossibility of its collection in mind,” RMIT economist Christopher Berg told the newspaper. He added that the most the ATO could do to non-compliant businesses was to slow down the processing of packages at the Australian border.