The issue is that points arising from business travel might be a "fringe benefit" and therefore your employer - not QF, not you - would be required to pay the FB Tax. OK, not your problem unless your employer "avoids" the FB Tax by asking QF to withold FF points on business travel!! Points that are not completely transferable are less likely to be held to be a benefit. For similar reasons QF won't sell points - because to do so would help the tax office to place a value upon them.

Snerp the (reformed) accountant

So that 12 months of tax law at university did teach me something !! (Ozzie, the lawyer who'd prefer never to think abot tax again)

Someone on the radio suggested that he sell the cap to his wife for $1 and then ask her to bring the cap back to Australia

kpc

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If he simply took it on the plane as carry-on I can't imagine anyone would have cast a second glance at it.

OR, something small like that mailed Registered Post would arrive without incident from the UK. There is no value declared on Registered Mail sendings providing weight does not exceed 500g. As long as he raised an all-risks cover note on it, he is covered for any loss or damage in transit.

$42,000 GST on a mouldy cap is pretty nuts.

Hmm, yesterday I sent a 295 gram package to the US (Australia Post Economy Airmail, not registered) and had to declare a description of the good and the value in A$. I would have expected the same from the UK, but have no practical experience in doing so.

According to one of the newpaper articles, the bloke previously worked for Customs, so knew the rules. He actually made enquiries to both Customs and ATO and received ambiguous answers. They were waiting for him at Melbourne airport knowing he had the goods with him.

I wonder how much the cap's value would have been reduced if he chose to wear it on his head as he entered the country?

Now, if my used underwear was sold on ebay for half a million bucks (well, just maybe ), will I be charged a hugh tax bill next time I bring my suitcase of washing back into the country?

What happens next time Steve Waugh bring his baggy green home after an overseas tour? Will his cap's value be calculated pro-rata based on career batting average?

My business involves mailing goods (stamps) overseas a few dozen times a week.

Australia Post sells two different size It'l REGISTERED pre-paid envelopes good for ANY overseas countries.

They cost about $8 for the smaller one and $15 for the real large one - 250mm x 360mm. Those do not have or require any documentation whatever on them, indeed there is no provision for it. They allegedly only are to contain printed matter material. You may send up to 500 grams in either. No ID check is required.

Anything other than that needs to be sent INSURED mail. You may not any longer REGISTER goods overseas unless you use the pre-paid PO envelopes.

Anything NOT insured and not exceeding 2 Kg weight and not exceeding $A500 declared value weight only needs a green CN22 form. The PO also applies a flouro orange "ID VERIFIED" sticker of outside. This is all due to 9/11 and the Anthrax scare in USA.

The odd thing about our GST is that is does NOT apply to exports. If these 2 Australian stamps which recently sold for $A217,898 where offered in Australia and bought by an Australian, I or seller or Auction would need to charge the buyer $21,788 GST on them.

However if I mailed them via $A8 Registered Mail to a relative in NZ or GB or USA there is no GST applicable as they have been exported. If the Ozzie based buyer then collected them in person from NZ and bought them home, or indeed had them mailed back Registered Post, well... you follow the story.

GST applies on ALL second hand goods. I can sell you a 200 year old letter that has changed hands 20 times in its life and GST applies. In many countries second hand goods are exempt, and most certainly as in UK all antiques are exempt, no matter what they are.

If you are happy to pay $425k for a cap then I don't think the 10% GST will be a barrier to you purchasing it.

I think this guy should be applauded, he thought there might be tax payable, investigated, surrendered the goods, paid the tax and received custody of the hat. If he thinks there has been an error at law, I am sure he will be seeking advice from an expert.

My concern is leaving a 1/2 million dollar hat with customs when they can't even physically secure their own mainframe computers


[This message has been edited by mikalee (edited 09-12-2003).]