Australian retailers are left shocked and disappointed after cabinet ministers yesterday rejected the proposal to close the GST loophole that allows for goods under $1000 purchased from online retailers to be exempt from the goods and services tax.

The Australian Retailers Association said the Government’s decision will severely hinder Australian small businesses.

“State Governments are losing billions of dollars in GST revenue which could support teachers, police and doctors. Australian retailers are also not being given a level playing field, and this is costing many local jobs,” Executive Director Russell Zimmerman said.

“Earlier this year Treasurer Josh Frydenberg declared that retailers were operating ‘with one hand tied behind their backs,’ and this is absolutely right. It is time for all business, governments and consumers to fix this problem which loses state governments legitimate revenue along with costing thousands of retail jobs in Australia.

“Retail jobs are extremely to the Australian economy – retail provides more jobs than any other sector in the economy, employing more than 10 percent of the workforce. These jobs are now at risk.

“The GST loophole has done nothing but damage our retail sector, and the ARA is extremely disappointed with the Government’s decision to turn its back on an opportunity to do the right thing,” Mr Zimmerman said.

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For interview opportunities with ARA Executive Director Russell Zimmerman call: The ARA Media Line T: 0439 612 556  E: media@retail.org.au