Subject:
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bizarre changes to postage stamps due to GST
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Newsgroups:
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lugnet.loc.au
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Date:
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Thu, 8 Feb 2001 03:38:11 GMT
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Viewed:
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364 times
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Maybe I am just the last one to find out about this, but GST has made some
fundamental changes to postage stamps.
Postage within Australia has a GST-component, but postage internationally is
GST-exempt.
For reasons that I assume have something to do with Australia Post's
book-keeping, they now sell domestic stamps (which include a GST component)
and international stamps (which don't). Domestic letters should carry
domestic stamps, and international letters should carry international
stamps.
So, what if you are like me and send international letters by putting on a
whole bunch of 45c stamps (or other domestic stamps) sufficient to cover the
postage ...
Well, your domestic stamps have a face value of 45c (or whatever), meaning
about 40c worth of postage and about 5c of GST. So if you use domestic
stamps on international letters, you apparently have to ensure that the
postal-value of the stamps (and not just the face value) is sufficient to
cover the postage. Crazy, or what?
When I heard this story, I didn't believe it so I contacted Australia Post
to confirm it and they said:
> With sending International mail overseas, you can purchase International
stamps or you can still send domestic stamps overseas but you will need to
add an extra 10% for GST.
which supports what I was told. Crazy, or what?
I'm not sure what happens if you try to use international stamps on domestic
letters; probably the ATO swoops down and you are tried for treason for
avoiding GST.
It is interesting to see that the GST is charged on the purchase of stamps
(i.e. on goods) and not on the payment of service (i.e. on sending the
letter).
Kerry
--
Kerry Raymond, Lady BUG
Lugnet Member #599
Mindstorms, Technics, Star Wars
Brisbane, Australia
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Message has 3 Replies:
 | | Re: bizarre changes to postage stamps due to GST
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| Kerry, heya! it's crazy :P... that I agree with. I couldn't believe it myself when I knew. But myself and the post office both have used International and Domestic stamps on my parcels. They (most) don't really care too much at this point of time (...) (24 years ago, 8-Feb-01, to lugnet.loc.au)
| | | Re: bizarre changes to postage stamps due to GST
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| From: "Kerry Raymond" <kerry@dstc.edu.au> (...) Ummm... Aren't these one and the same? The stamp is just a small bit of sticky paper, and not worth 45 cents. It's just a receipt stating that you've made payment for the service of delivering that (...) (24 years ago, 8-Feb-01, to lugnet.loc.au)
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