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Subject: 
Re: bizarre changes to postage stamps due to GST
Newsgroups: 
lugnet.loc.au
Date: 
Thu, 8 Feb 2001 04:37:48 GMT
Viewed: 
281 times
  
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 but I use what ever, I don't care, as
long as it gets there.  I have used international stamps to send stuff
domestically (sometimes you have to as they may have ran out of the value
that you needed!

Mel

In lugnet.loc.au, Kerry Raymond writes:
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



Message is in Reply To:
  bizarre changes to postage stamps due to GST
 
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 (...) (23 years ago, 8-Feb-01, to lugnet.loc.au)

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