Harvey Norman boss Gerry Harvey wants to sell his goods online from a business based in China to avoid paying the GST.

Mr Harvey says Australian retailers are struggling to compete against overseas shopping websites as online purchases under $1,000 are tax free.

Department store Myer says it is also planning to sell its products out of China.

Mr Harvey says the problem has become particularly bad since the Australian dollar hit its peak against the greenback, and Australian business cannot compete against those with a tax exemption.

The Federal Government recently said it would consider imposing GST on imported goods worth less than $1,000 to help local retailers compete with online stores.

A spokesman for Assistant Treasurer Bill Shorten said while the threshold was good for consumers, it needed to be balanced against the interests of retailers.