Subject:
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Re: 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, 15 Feb 2001 02:32:55 GMT
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Viewed:
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427 times
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In lugnet.loc.au, Deidre Rushton Brumby writes:
> In lugnet.loc.au, Peter White writes:
> > Shouldn't this be the other way...since you have paid GST on domestic stamps
> > already, why would you pay it again to use them for export.
> > But if you bought International Stamps and used them domestically, then you
> > would need to add GST worth ?
>
> Yeah, I had to think about that for a bit too but it does make sense (it'll
> give you a headache though!). If postage OS is worth $1, GST free, then if
> you put a $1 domestic stamp on, you've actually only paid 90-91 cents for
> the postage and around 9c GST, so Aus Post are down 9c. They've got to pass
> on that 9c GST no matter what you do with the domestic stamp. So, to get
> the $1 value required you need to pay $1.10 on domestic stamps, so Aus Post
> gets the $1 to carry the letter and the government gets their 10c GST. Or
> you can just buy a $1 International stamp and be done with it (govt gets nil).
>
> Basically, you'd be a fool to put domestic stamps on overseas letters
> because it will always cost you 10% more which goes straight to the tax
> coffers for no actual benefit provided to anyone (except perhaps to Great
> Aunt Hilda who likes to collect used Aust. domestic stamps).
But I would have thought Aust Post would have to charge GST on the portion of
the service they provide, ie from posting point to international freight
terminal (or maybe to terminal at other end?). So that a domestic stamp should
attract 10% on only a portion of it's value, resulting in a lower overall
percent increase.
Conversely, if you use an international stamp, they would have the right to
refuse to send it, until you cough up GST for their service.
Both of these scenarios, however, are unlikely, as the postal service generally
does a pretty good attempt at delivering, allowing some things to pass without
bothering to create an kind of hassle. For proof, see
http://www.improbable.com/airchives/paperair/volume6/v6i4/postal-6-4.html
Regards,
ROSCO
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Message is in Reply To:
 | | Re: bizarre changes to postage stamps due to GST
|
| (...) Yeah, I had to think about that for a bit too but it does make sense (it'll give you a headache though!). If postage OS is worth $1, GST free, then if you put a $1 domestic stamp on, you've actually only paid 90-91 cents for the postage and (...) (23 years ago, 15-Feb-01, to lugnet.loc.au)
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