Much to Mr. Smith's frustration, and my bank's delight, I'm a huge fan of internet shopping. But as I constantly remind him, the hours I spend shopping online are the hours I save him in a shopping centre.
Firstly, you have the sheer convenience of shopping from your work, or from home in the comfort of your PJ's, with a glass of wine next to the keyboard. And secondly, if you're like me and have perfected shopping into a fine art, there's the 'present feeling' you get when your purchase finally arrives.
To be honest, I'd probably do more shopping from local online retailers if the postage costs were more competitive. Australia Post hasn't really encouraged shopping online because their costs are so high.
Clearly, I'm not alone. Even more so now, thanks to our rising dollar, more and more Australians are logging on to shop overseas.
However, for many Australians, we don't just shop online for convenience. More than ever before, we are shopping online, and sending our hard earned dollars overseas, simply because it's cheaper to get it from America. Or China. Or Europe. Perhaps even Greenland these days!
And guess what? Aussie retailers don't like it. The Australian retail industry is worth about $292 billion, and it's estimated that this year Australians will spend about $6 billion online.
They think they're losing out on a chunk of that income. Well, they are, but not a whole lot.
Quite simply, why should you pay more when you know you can get a product cheaper elsewhere?
I certainly won't. As every other basic living cost is on the rise, every dollar saved there is another dollar towards something you really want.
In a recent interview, Russell Zimmerman head of the Australian Retailers Association is 'crying out' to the government to fix this problem. What problem? He cites job losses, business closing down and all other dramatic scenarios if a stop isn't put to this madness! When will the pesky consumer learn to pay higher prices for far less options?
In 2005 the government increased the amount you could spend overseas before paying any GST or duties. As of today, if you spend less than $1,000, anything you buy overseas won't attract a tax charge.
But, for an Australian retailer because of the volume they purchase in, they must pay taxes. It's simply unavoidable.
Zimmerman, appealing to the government's need for someone else's money has reminded the government that it's missing out on revenue, 'There's around $6 billion worth of goods coming in without any form of duty or GST being paid on them... there is around $600 million worth of GST the government is missing out on.'
He's even suggested that import value be lowered to $400 and then apply duties or GST. The problem isn't that retailers are under threat of closing down. At the moment, people shopping online is more about eating into retailer profits, which no business likes.
But what's worrying is that he expects that government to 'save' the industry by forcing more tax on people. Considering that online shopping accounts for little more than 2% of the entire industry you have to think they must be really desperate for sales.
Instead of trying to get the government to tax you even more and make you pay more for goods, perhaps he should be listening to why consumers are shopping online rather than in stores? That way they may get some of the business back.
Yes, a strong Aussie dollar has encouraged me, and many others to increase internet shopping where possible. Thanks to central bankers fiddling around with things, you can now get more for your money from overseas online stores.
But there's also the choice factor. There's a far greater variety available overseas and online. Much more than the shops offer here, and Zimmerman is missing this opportunity to hear what consumers want from their retailers.
Last time I checked, retailers were supposed to serve a purpose, but right now, that purpose isn't being met. So consumers have voted with their dollars and spent them elsewhere.
Yet, all Zimmerman wants the government to do is to 'save the industry and job losses'. Which really means increasing the taxes you pay.
Now, if items are too expensive in Australia, doesn't it make more sense to appeal to the government to lower the taxes and duties paid by retailers in order to remain competitive and keep Australian retailers in business?
Of course it does. But he knows that the government is never willingly going to give up a nice revenue stream.
It appears that he knows the only way the government will listen to his pleas is to increase tax on items bought overseas, rather than lower it for retailers so they can try to compete with online retailers.
So before the government listens to the boy crying wolf by gouging you for more tax, and while the Aussie dollar is worth more than the greenback, jump online and get yourself a bargain.
Yet again we have another vested interest who thinks the only way to save an industry is to tax the consumer more, rather than give the consumer what they want.
You can't save an industry, business or country by applying more taxing because all you end up doing are hurting the very people that support it.
Shae Smith
Assistant Editor