Food prices are also now controlled by just a few companies in Aussie and this is something you can't go without. It's bad enough that Nike shoes are over the top, but when it's meat and bread it really hurts. The GST is essentially a tax on locally produced goods to which value has been added or service performed. Raw food is exempted from GST, bust processed food isn't so it now seems that Coles and others have found their own GST loophole by importing partly processed food but claiming the exemption. They spend millions finding out how to get around the GST so it seems absolutely hypocritical to bluster on about us buying mountains of sub-$1k items from overseas. I agree with AbRASiON on this - it's not the 10% they're worried about, it's the other 40% on top!
See ATO guide on which foods attract GST here - http://www.ato.gov.au/print.asp?doc=/content/18694.htm
Just don't know how highly processed brekfast cereals gain an exemption (ask Mr - tax free - Kelloggs/Sanitarium) and of course the sugar lobby got white refined sugar GST-free somehow - can't live without that one
The whole GST application is a debacle. But AbASiON's ponit on gouging is valid - just try to buy books online and see what local suppliers think, never mind DVDs and MP3s.