Premier joins attack on online rivals
The company, which owns clothing chains Just Jeans and Jay Jays, believes lowering the threshold to tax cheaper goods would create a level playing field between local stores and online retailers.
The renewed calls come a day after Myer chairman Paul McClintock said he was confident the Coalition government would tackle the issue.
Premier chairman Solomon Lew said the different tax rates gave the company's international competitors an unfair advantage.
"I think they understand that there is a need to make it a level playing field," he said. "There's a need to close the loophole. And I think the state governments understand there is [tax] leakage."
Premier Investments says it expects consumer confidence to lift over the current year, but trading conditions remained challenging.
The company is struggling to compete against the growth of online retail stores, particularly dominant players such as ASOS, which have global distribution networks and fewer costs.
Despite this, it reported a net profit of $174.5 million in the year to July 27, up from $68.3 million during the previous 12 months. This included a one-off $105.2 million adjustment to include the company's 25 per cent equity investment in kitchen appliances maker Breville from early March.
Premier CEO and former boss of department store David Jones Mark McInnes said jobs would be lost over the next two years if the GST issue was not dealt with.
"I am absolutely confident that the Liberal government, Tony Abbott, Joe Hockey, they have no desire to put Australians out of work. They have no desire to put 33,000 Australians out of work in the next two years."
He said the company could be forced to cut jobs if no change was made, but would not guarantee jobs were safe even with the changes.
"We don't want to be going about cutting jobs, but obviously if leakage continues in main street Australia, it won't just be us, all retailers will be faced with that situation."
There has been no commitment yet from the Coalition government to eliminate or change the GST-free threshold, and any attempt to charge GST on items bought online could trigger a backlash from consumers.
Frequently Asked Questions about this Article…
Premier Investments believes that removing the GST exemption on imported goods under $1000 would create a level playing field between local stores and online retailers, as the current exemption gives international competitors an unfair advantage.
Premier Investments expects consumer confidence to lift over the current year if the GST exemption is removed, although they acknowledge that trading conditions remain challenging.
Premier Investments is struggling to compete against the growth of online retail stores, particularly dominant players like ASOS, which benefit from global distribution networks and lower costs.
Premier Investments reported a net profit of $174.5 million in the year to July 27, which was an increase from $68.3 million during the previous 12 months. This included a one-off $105.2 million adjustment for their 25% equity investment in Breville.
Premier Investments CEO Mark McInnes warned that jobs could be lost over the next two years if the GST issue is not addressed, potentially affecting 33,000 Australians.
As of now, there has been no commitment from the Coalition government to eliminate or change the GST-free threshold, despite calls from Premier Investments and other retailers.
Premier Investments' chairman, Solomon Lew, believes there is a need to close the loophole created by the GST exemption, as it results in tax leakage and gives international competitors an unfair advantage.
Charging GST on items bought online could potentially trigger a backlash from consumers, as it would increase the cost of online shopping.
Call 1300 880 160
Start a chat
Schedule a call
