What a load of horse shit, frankly. How many people really buy bikes on the net, when fit and a test ride are so important? With the boom in cycling, any decent operator ought to be able to offer a service-based alternative to lower prices. Unless his prices were within 10 percent of internet prices he's talking complete crap, and expecting taxpayers (who make a loss on these tax collections) to subsidise his business.
You only get the $1,000 exemption from GST. So anything over 1,000 pays GST anyway. Now even if you buy a frame for say , $990, the GST saving is $90. Postage on a frame will be around $50 at least these days. So there is bugger all savings from GST.
I note that the bloke fromAbbotsford cycles said he wasn't worried as they concentrated on servicing bikes and fitting accessories and he expected to be around in 20 years.
The bloke up around the corner from me doesn't sell any bikes. Just services them. And sells a few accessories and parts. If you want a part he says " wait I'll check if it's cheaper online for you" - even if it's cheaper 9 times out of 10 people say , nah. What's $10 and I'll have to wait a week or so, I'll buy it off you. He's already put an extra bike mechanic on this year.