SMEs lose $50k to foreign sites

Three quarters of Australian small and medium-sized enterprise (SME) retailers are losing at least $50 000 a year to foreign Web sites that offer tax-free online shopping, according to the National Retailers Association, says Start Up Smart.

The claims are based on a survey of 156 SME retailers, which found 19% have lost between 30% and 50% of their sales, while 44% have lost 10% to 30% of sales.

Of the 76 retailers who estimated their losses in dollars, 75% claim they have lost more than $50 000 a year, while 54% say they have lost more than $100 000.

According to Smart Company, the survey comes as treasury figures claim that the goods and service tax (GST) savings made by consumers shopping overseas - and the amount the government is losing in GST tax revenue - could be as high as $1.3 million a day.

The productivity commission, states The Courier Pigeon, has also revealed that Australia has the second lowest tax-free threshold ($1 000 tax-free imported goods and products) after Hong Kong, where all imported products and goods enter the country free of cost.

This latest revelation is predicted to cause unrest among traditional Australian retailers, who want to restrict the tax-free imports.

The commission understands that it would be better to give all retailers the same tax-free treatment.