Retail Moguls Say Online Shopping Is Bad For Workers

Solomon Lew and Mark McInnes criticized the government for its reluctance to junk the GST-free threshold imposed on items that were purchased from foreign websites.

The two argued that eliminating this tax advantage has contributed to the loss of thousands of jobs in Australia. They also claimed that it is a factor to the collapse of many businesses like Fletcher Jones, Colorado and Borders.

Appearing at the Premier Investments’ yearly meeting, Lew and McInnes said more than 20,000 jobs were cut in 2011 and some 30,000 job cuts would occur in the next three years.

Lew said that the country is running out of time and that things need to change now.

New South Wales premier Nick Greiner has made a recommendation that consumers should pay GST for purchases made on foreign websites. The recommendation is also echoed by John Brumby, former Victorian premier.

The current GST-free threshold is at $1000. Lew and McInnes said the government has not made any move to scrap this tax advantage. They added that while other countries treat this as a matter of public issue, the federal government is not.

The two retail moguls lamented that it’s hard for local businesses to be competitive when the government is not on their side. Lew also said that government ministers usually hide under the cliché “we will look into it.”