It’s come to my attention that I have some friends participating in their own A-Z Challenge in April, called “Guess the name of The Tax Chic’s blog”…I’m thinking they might get this one right!

On 1st July, 2000 the Goods and Services Tax (GST) was introduced to Australia…a 10% broad based consumption tax on goods and services.

Some saw it as following in the steps of our New Zealand neighbours, some saw it as the death of small business, and some saw it as a changing of the guard (so to speak) putting business in Australia as the tax collector or doing the job of the Australian Taxation Office (ATO).

However you saw it, GST is here to stay and the collection and remittance of GST to the ATO is part and parcel of being in business.  I understand that not all situations will be straight forward, but with good planning and proper procedures, recording GST need not be an onerous task.

It is however important for business owners to understand how the GST works and to determine their obligations under the system…ignorance is no defence, and I always prefer to be armed with more information than less!

If there are aspects of GST in your business that you do not understand, ask questions of your accountant, or contact our partner LMB Consulting to arrange a consultation.

Regards