Earlier in the week I shared a diagram from the ATO (Australian Taxation Office) on How GST works.

Today we look at the back of that same flier at an example.

Using the circumstances of a wool farmer who sells their wool to a clothing manufacturer, who sells their jumper to a retailer who sells to a consumer (let’s face it, they probably sold it to me – shopping much?!)

See if you can follow the flow of GST and let me know…

Regards

I know we’ve had the GST (Goods and Services Tax) in Australia for over 17 years…but everyday I come across examples of businesses and community members who are a little perplexed about where the GST goes.

I’m not talking about the actual numbers today, but this diagram from the ATO (Australian Taxation Office) is a great summary of the flow of funds.

Importers pay the GST on imported goods to the Department of Immigration and Border Protection and it is combined with the total GST collected overall.

Manufacturers, wholesalers and retailers or service providers pay their net GST (ie: GST collected less GST paid) to the ATO and it too is combined with the total GST collected overall.

The Australian Government then distribute GST to the States and Territories where it flows back to us as consumers by way of roads, housing, public transport and emergency services.

Take a look and let me know if this helps to clear things up for you.

Regards

This is just a little reminder that I am a certified advisor with Xero.

Xero is my software of choice, and I can absolutely promise that if we decide this is the right tool for you – you won’t regret it!

The great thing about being a certified advisor with Xero is that I have access to solutions for small business and community groups that are not available to the general public.

So I implore you, if you are thinking about changing software, or you want to save time on bookkeeping in your business, or you are a community organisation looking to make the job of your volunteer treasurer more attractive – let me show you a Xero solution today!

Just contact me!

A bit of fluff today with an important lesson – about how my suitcase taught me to let go…

About four years ago I started travelling a lot for work, and I invested in a new medium size suitcase with four single wheels.  At the time I wasn’t convinced about hard sided suitcases so I spent a small fortune on a soft sided suitcase and simply assumed it would meet my needs.

It soon became apparent that when this particular suitcase took on just a bit of weight, it didn’t roll well on it’s four single wheels.  It became the source of frustration each and every time I travelled.

I’ve put up with this frustration for all of this time thinking that this is what I needed to do because I had spent money on the item and I couldn’t possible justify buying yet ‘another’ suitcase.

Fast forward to the lesson – I have a couple of short trips coming up and already I had started feeling anxious about using this soft sided suitcase with four single wheels, and so I made the decision to invest in a new one.  I am now the proud owner of a medium sized hard sided suitcase with four double wheels and it rolls beautifully.

As soon as I clicked on the payment button I felt a weight lift from my shoulders and I knew I’d done the right thing.  But wait, there’s more…

As I discussed the purchase with a friend, we began considering how many of us hold on to things, both material items like my ill-functioning suitcase, a pair of shoes that rub the wrong way or a frypan with a loose handle, and non-material considerations such as thoughts and ideas, relationships or careers – even when they no longer serve a purpose for us.

These days we all have easy access via social media to inspiring people from across the globe, and often the messages that are shared are underpinned by major shifts in mindset or significant changes in ones way of doing things, but I think it is important to remember that there can be benefits in the small things too.

I have finally let go of the suitcase that wasn’t serving a purpose for me anymore, and I hope my suitcase example goes some way to proving that any breakthrough we have can count as a win. It doesn’t need to be something major – a small change in your thinking can make all the difference!

Regards