SYDNEY, NSW: Both Harvey Norman and Myer have raised the possibility of opening their own China-based online sales sites to combat online competitors, and take advantage of the GST-free threshold on sales under $1,000.
Harvey Norman chairman Gerry Harvey lashed out at the Government for failing to properly protect Australian retailers at Harvey Norman’s AGM. He believes that the GST should apply to all online overseas sales, so that the competition is more fairly balanced. Harvey himself has been involved in a public war of words throughout 2010 with online mogul Ruslan Kogan.
Myer CEO was quoted in The Australian saying that tax free Chinese sales would be available from Myer in February 2011.
“It's not something you want to do because it means I'm giving away jobs in Australia," Brookes said. "But the Government are sitting on their bum (sic) and not doing anything about it to capture the GST and make it a level playing field.
"If we can't beat them, we'll join them, so we'll take those jobs offshore and we'll ship product out of China through our internet site, and our customers won't have to pay GST."
Gerry Harvey was quoted today on News Limited websites saying Harvey Norman is not only likely to follow suit, but also beat Myer to Sino operations.