http://www.news.com.au/business/battered-retailers-try-boxing-day-ploy/story-e6frfm1i-1225973366437

Retailers are saying that these current weeks leading up to Christmas are the worst since the 'recession we had to have' of the 1990's and its not due to people not having cash in their pockets, after all we still have employment levels that are the envy of the world, we have a booming mining sector that is driving the economy like the 'Gold Rushes' that built many of that magnificent inner city malls that house these boutique retailers that are facing such low sales.

The problems facing retailers are three fold, namely the exchange rate which has driven down the prices of imports thanks to the strength of the Aussie Dollar on the back of the mining boom as well as the lowering of our trading partners currencies, the Euro and most importantly the US Dollar which in turn thanks to some cheeky pairing also lowers the Chines Yuan. The second problem facing our consumers willingness to purchase products online. It's been a slow process for the mass market to get their heads around the fact that yes you can trust that paying via credit card to some foreign business will result in what you want turning up at your door. However thanks to the likes of Ebay, Wotif and online purchasing of flights Australians are becoming much more comfortable with the concept. The third problem facing retailers is one of taxation or more simply not taxation, that is the Governments thresh hold on online purchases is $1000, which means that on top of the benefits of the high $A all foreign goods are 10% cheaper as they come without GST.

Though I am a consumer and thanks to my current state of immobility, I can only organize my life through the internet and there for have done 90% of my purchases online this month, I am a big believer in people paying their share of taxation. Wayne Swan our treasurer has taken the populist approach of saying that 'mum and dad Australians' are entitled to a tax break this Christmas.  It just goes to show how obscene this government is to the business community of this country.

Farmers In Australia know only too well that successive governments tout the importance of 'the level playing field' and have forced our producers to compete without protection in the world market, despite most other western nations supporting their food suppliers to ensure they are protecting that core need of their citizens. Many sectors of the Agricultural community have been decimated especially the pork and citrus growers, which faced imports that were cheaper than they could actually even produce the items let alone get them to the market place. Recently the Australian Government deserted the one mechanism that our most important group of farmers, Cereal Growers, with the removal of the single desk export mechanism. No tears were shed for these Farmers.

It appears the Government is shedding no tears for what will be the wiping off of margins by businesses across the country, which will lead to job reductions and more importantly more dollars being exported than re-circulated here. Not all bussinesses will be effected by this profound economic readjustment, however many will be, just as occured when Government lifted the doors on our farmers to world wide competition without any assistances. 

It is this strange arena in which farmers and businesses now work, where the rules seem to be in the favour of those outside our borders at the detriment to those inside. Yeah sure consumers get cheaper goods in the short term but at what cost? Foreign goods are getting tax free status and are instantly 10% cheaper than goods here, this hurts local sellers who collect that tax for the government it also hurts the government that will reap reduced taxation, it also hurts our economy as the cash is exported and along with it jobs and industry investment.

Whist I do not agree with protectionism for mature industries i do believe in  universal taxation and am totally against tax breaks for foreign companies located in foreign jurisdictions.

The mums and dads of Australia a very lucky I'm not in Government cause I'd be making sure tax is paid on goods Australian or otherwise.

One thing I haven't mention is the issue of the consumers purse and that its got pretty tight strings right now...well that just encourages people to hunt that cheaper deal and in the not too distant future the online economy will be too big for this government to continue forcing businesses to hike on the level playing field of the global economy.