On 18 December 2010, The Productivity Commission announced that they would undertake an inquiry into the economic structure and performance of the Australian retail industry, especially whether there should be any change to the GST exemption threshold on imported goods.

The Commission has also been asked to report on the:

• current structure, performance and efficiency of the retail sector

• drivers of structural change in the retail industry

• broader issues contributing to the increase in online purchasing by Australian consumers

• sustainability and appropriateness of current indirect tax arrangements and the extent to which technology could reduce the administrative costs of tax collection

• other regulatory or policy issues which impact on the structural change in the sector

eBay provided a submission providing evidence that there should be no change to the GST exemption threshold and also that the Government should start looking at key enablers for the digital economy which includes policies to enable:

• consumers to shop online via their mobiles

• domestic retailers to effectively compete through changes to shipping infrastructure allowing for fast, affordable and tracked shipping

• online retailers to effectively bring action for restrictive trade practices

Go to http://origin.australia.ebaymainstreet.com/files/PC%20sub%20Final.pdf to download eBay submission or visit http://www.pc.gov.au/projects/inquiry/retail-industry for further details and alternative submission papers.