Peter R. Belinfante & Co Pty Ltd   ACN 003 386 221

Chartered Accountants.

News

Taxation in Australia

FOR IMMEDIATE RELEASE

GST and Tax Reform

On 2 December 1998, the Australian Government introduced the first stage of implementing its taxation reform package.

GST is the centrepiece of this reform. In brief:

A Goods and Services Tax is proposed to apply from 1 July 2000 at the same time Sales Tax will be abolished.

At a Rate of  : 10 %

With certain exceptions including : Education (books, uniforms and computers will not be GST- free) Health Care, employee wages and private sales (eg garage sale of personal effects)

Registration for GST will be required by 1 June 2000, for every business whose annual turnover is $ 50,000 or more.

Accounting for  GST will occur when an invoice is issued, unless  a "cash basis" of accounting is adopted. That option will be available to businesses if their turnover is less than $ 500,000 per annum.

Businesses (less than $ 20 M) will be required to lodge monthly or quarterly returns to claim the net GST owing to them or pay their net liability.

It will be cash flow critical for businesses to have proper accounting systems including, in many cases, "point of sale" software.  We have encouraged and assisted clients to computerise their operations over the past few years. In most cases updating the systems for GST compliance will mainly involve purchasing upgraded software but routines will need to be altered for regular input so that GST Returns may be lodged on time. 

Please contact our office for a review of your system and to plan for GST implementation.

Send mail to [email protected] with questions or comments about this web site.
Last modified: January 02, 1999