The Effect Of E-Commerce
The Productivity Commission has begun its inquiry into the effect of e-commerce on the $250 billion retail sector.
The two appointed commissioners are due to report preliminary findings by August.
Philip Weickhardt, a former chief executive of Orica, and Louise Sylvan, formerly chief executive of the Australian Consumers Association, will guide the commission through an expected deluge of submissions examining the challenge posed by the increase in online shopping and the appropriateness of indirect tax arrangements for offshore online deals.
An issues paper is to be released by the end of next month, with initial submissions from groups and individuals due by May 20. A draft report is expected in August, followed by public hearings in September and a final report in November.
The perceived threat of online sales to Australia’s retail sector exploded on the national agenda just after Christmas when Harvey Norman founder and chairman Gerry Harvey, businessman and retail mogul Solly Lew, and fellow retailers launched a campaign against the leakage of sales, especially GST-free purchases, to the web.
Chief among their complaints was that the GST-free threshold of $1000 for internet retail sites put Australian retail operations at a significant price disadvantage.
When the campaign, also supported by Myer and David Jones, backfired, the coalition of retailers quickly retreated from their advertising. But they did win a commitment for a Productivity Commission inquiry.
Yesterday, the Australian National Retailers Association welcomed the inquiry’s start as it said recovery of the sector looked like a distant hope.
”Australian shoppers remain cautious post-GFC, and with such a challenging retail environment, a wide-ranging review of opportunities for growth and the barriers to prosperity is overdue,” the association said.
The Fair Imports Alliance - a coalition of retailer and wholesaler groups - said the retail and manufacturing sectors had become increasingly concerned about the lack of consultation from the Customs and Border Protection Service since the announcement of a crackdown on the misuse of importation regulations.