Preview

Gst Tax

Powerful Essays
Open Document
Open Document
2164 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Gst Tax
Goods and Services Tax- Australia

To uphold a country's political and economical stability, governments often implement policies. There are many different types of policies that a government would implement to stabilize their country. However, one significant policy that almost every country uses is tax. In particular, Australia and Canada use a value added tax known as the Goods and Services Tax (GST). Australia's GST policy was introduced by the Howard government and went into effect on July 1st, 2000. This GST policy replaced the wholesale sales tax system and other various minor taxes like that of stamp duty and bank account debits tax. In other words, the "goods and services tax is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia." (http://www.ato.gov.au/) The GST policy affects more than just people in Australia, it affects the economy of the country. Thus, the Australian government had probably implemented this tax for a number of reasons, and a number of benefits. GST impacts a great deal in Australia as GST is placed on all the imports to Australia along with the tax imposed on practically all aspects of the production and distribution of the goods and services. To briefly explain the GST will enable the understanding of the impacts, effects and the reason of its implementation to Australia.

As an overview, when the GST is imposed upon the goods and services, it is then known as ‘taxable supplies'. These goods and services will be all of the goods and services that have been imported. Furthermore, this tax is charged at all stages of its production and distribution process. However, it must be known that there are some goods and services that are exempt from being taxed by the GST. This list of exemption goods differ from country to country who implement the GST tax. For example, in Singapore, the exempted items will include the following of financial services, or the selling and the leasing of

You May Also Find These Documents Helpful

  • Powerful Essays

    Nt1310 Unit 1 Assignment 1

    • 4963 Words
    • 20 Pages

    Income tax only works in developed countries – Australia has a heavily reliance on income tax.…

    • 4963 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    The Goods and Services Tax (GST) replaced the old manufacturers’ sales tax. The GST bill was first introduced in the House of Commons on January 24th, 1990, and the legislation was then passed in the Senate on December 13th, 1990. The GST went into effect on January 1st, 1991, with a Goods and Services Tax (GST) of 7 per cent. The introduction of the GST was very beneficial to Canada because of the revenue produced from it. Although there was a lot of controversy over the new GST, and lots of hate to Mulroney, the tax revenue would be used for things necessary for the government, and the people, of course. His new Goods and Services Tax (GST) was effective and still leaves a great impact to this date, making him a great Prime Minister of Canada back in…

    • 529 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Tax and Quick Books

    • 803 Words
    • 4 Pages

    GST: Goods and service tax is a value added tax of 10% in most services and goods, it is imposed on most of the transactions but refunded later with certain process.…

    • 803 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Governments, especially those of most advanced countries, often tend to impose extra taxes or tariffs on imported goods and services in order to protect their own interests and industries. The same happens, for instance, with the automobile industry. Every country that manufactures cars imposes heavy taxes for imported cars and their parts and accessories in order to protect their industry and jobs.…

    • 1027 Words
    • 5 Pages
    Good Essays
  • Better Essays

    These taxes are imposed between countries therefore raising the price of a good. Tariffs increase the price of the product once it is…

    • 1417 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Retailers act as collecting agents for the federal government. Stores charge their customers GST, but the GST belongs to the federal government. The store has a liability to pay the federal government (Receiver General) the amount of tax collected less applicable input tax credits.…

    • 6188 Words
    • 72 Pages
    Powerful Essays
  • Good Essays

    Gst Free Threshold

    • 2226 Words
    • 9 Pages

    A recently story by Clancy Yeates from the Courier Mail dated December 3rd 2012, discusses groundwork laid out by the Australian Federal Government. The government aims to reduce the thousand dollar GST free threshold for goods bought from overseas online stores. The article refers to the assistant Treasurer David Bradbury and how he feels the policy will affect on retailers. Bradbury states “while this is not the biggest challenge confronting the retail sector, the government does recognise that on the basis of fairness and tax neutrality Australian retailers should not be disadvantaged by taxation arrangements which favour overseas retailers”. Bradbury also states “the government also acknowledges that the current threshold of $1000 at which GST is collected on low value parcels is very high by international standards”. Currently, it is one of the highest thresholds in the world.…

    • 2226 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    Australia inherited a convoluted and complex taxation structure from its British Colonial past. Australia 's economy has become more dynamic, efficient and productive over recent decades. However, the tax system has only adapted slowly to these changes. In particular, Australia 's high personal tax rates and low thresholds are uncompetitive by international standards.…

    • 1578 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Legt2751 Mid Sem

    • 972 Words
    • 4 Pages

    the supply and does notgol.n npul lax credit for GST pa d on puEhases thal relate to $e nputlax€d slppy…

    • 972 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The Government tax goods with inelastic demand like meats, bread, soft drinks as people will devour for these items in the face of the change in price…

    • 389 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Moments In Canada

    • 990 Words
    • 4 Pages

    Prime minister Brian Mulroney and financial minister Michael Wilson introduced the idea of a Goods and Services Tax (GST) to replace Manufacture Service Tax (MST) and Federal Telecommunication Tax. This new tax is suppose to be implemented to all provinces except Alberta because they already had their own sales tax at a retail level. GST saved Canada from debt of the first world war, even though GST wasn’t introduced until 1990, MST was the little brother of GST. The government decided that MST was the best way to pay for the debt and essentially it was, but most Canadians and manufacturers strongly disliked this tax. GST was promoted as revenue-neutral in relation to the MST, the shifting of the tax away from exported manufactured goods would make life more costly for Canadians. Thus Canadians were against GST and manufactures were worried that the tax would hurt their sales internationally. The GST is affecting us every day, because if you are Canadian and you pay for a product or service; you are hit with a 13% fee and that is HST (PST and GST…

    • 990 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Some goods and services may not be provided under a pure market economy such as public transport and parks. Governments provide those goods that are beneficial to the community. It is also sometimes better for essential goods and services to be provided by government, rather than being left to private individuals such as defence and security. The government may also choose to influence the public sector through grants and subsidies. For example, specific sectors that are in need of assistance can be assisted through industry assistance and development spending. The government also reallocates resources to public sector agencies that provide services to the community such as Australian Bureau of Statistics. The government can set regulations to prevent the exploitation of consumers and legislate to ban the production of undesirable goods and services e.g. illicit drugs. The government can impose safety standards and production methods that will not harm the environment. Australian individuals have quite a lot of economic freedom however the Australian economy works within an overall framework of government regulations, which safeguard society. The government legislates hours of work and minimum wages, sets prices for some products and pays subsidies and social service benefits. The allocation of resources and the distribution of what is produced still takes place, largely through the market or price mechanism but the government intervenes to grant cash subsidies, charge taxes, borrow money and run its own…

    • 1625 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    In 96/97 the CAD fell to $20.9bn from the $27bn blowout during 95/96. This was…

    • 1768 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Climate change is a threatening issue in the global. Thus, carbon tax is used as a tool to reduce greenhouse. The Australian Government announced initially the price of carbon tax is $23 per tone and has become a concerned issue with policy proposal makers and its significant effects on all society and economy. The report will outline some features that related to the issues and impacts of carbon tax as well as the responds of business and consumers.…

    • 2028 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    References: Australian Government: Department of Foreign Affairs and Trade. (2011). About Australia. Retrieved 20 December 2011 from…

    • 1115 Words
    • 5 Pages
    Powerful Essays

Related Topics