A GST And Your Business

Alan Smolak, Partner, Taxation Services, Coopers & Lybrand, was closely involved in the development and implementation of a consumption tax in Canada. In this article he outlines what the introduction of a GST in Australia would mean for your business.

Hardly a day goes by without one interest group or another declaring Australia's tax regime is well beyond its 'use by' date. In many cases such declarations are accompanied by support for the introduction of a broadly based consumption tax such as a value added type goods and services tax (GST). This is hardly surprising. There are only two continents without a GST. One is Australia, the other is Antarctica. The focus is typically on the big picture equity issues associated with a GST. There are, however, a series of practical commercial issues which Australian business should consider. These issues become increasingly important as the 'transitional' period advances.