Under a new Australian law, large foreign businesses are required to register with the Australian Taxation Office
Question:
Under a new Australian law, large foreign businesses are required to register with the Australian Taxation Office to collect the goods and services \(\operatorname{tax}\) (GST, a \(10 \%\) value-added tax) on all the goods they sell. Prior to July 2017, online sales of imported products worth up to AU\$1,000 did not attract the GST. The Treasurer of Australia stated that the change would remove a disadvantage the low-value threshold causes for Australian businesses. Retailers feel the change will help level the playing field with online retailers like Amazon, Asos, and eBay. Use an indifference curve-budget line diagram to show what will happen when all sellers, both online and over-the-counter, pay the same amount of tax on the sale of the same good.
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