Turner calls for GST re-think

Turner calls for GST re-think
By admin


Overseas online retailers are being handed a “huge free kick” by paying less GST than domestic operators, Flight Centre managing director Graham Turner has said.

He called for action to be taken to address the situation which he insisted is harming local businesses

Turner told Financial Review Sunday it was on his wish list of issues to be explored by the government.

“The overseas online GST-free limit I think is a really big thing,” he said. “It is giving overseas online players a huge free kick and it’s really hurting local retailers. It will be affecting a lot of people.”

Turner also again played down the possible effect that a falling Australian dollar may have on travel.

“There is some conjecture that people travel more when there’s a strong Australian dollar but we haven’t seen that,” he said. “There seems to be no effect on international travel when the dollar has gone down previously but we’ll see.

“It depends on how far is falls and how quickly.”

Turner also said the value of the dollar appears to have little impact on domestic travel with sales of local holidays continuing to account for about 30% of Flight Centre’s business.

Flight Centre told Citigroup last month that the strength or weakness of the dollar and its impact on travel has been over-estimated.

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