Freight forwarders are on high alert over the next few days, as the federal government tries to get rid of the Goods and Services Tax (GST) before Christmas.
It’s expected the new tax will hit the Australian economy hard, as many industries will struggle to make money as a result.
Key points: The new GST is scheduled to hit the retail and wholesale sector from January 1, 2018It will apply to both imported goods and those made domesticallyThe GST will be introduced on January 1 and will apply on both imported and domestic productsThe Australian Bureau of Statistics says the new GST will affect about 7.7 million Australians, with about 8.7 per cent of households affected.
The tax has sparked outrage from farmers, as it will see businesses and consumers pay a new price for goods.GST will hit farmers in a big way The Government has been pushing the new taxes through Parliament.
But as it was first introduced, it had to go through a complicated process of cross-party negotiation.
The Government is now set to release the draft legislation in the coming weeks.
The Government is proposing a GST of 4 per cent, with a 10 per cent GST rate on imported goods, with other changes to come, including a tax on certain small businesses.
However, this will affect just about one in every three Australians, and it’s estimated the tax will cost more than $60 billion in the next decade.
The Australian Manufacturing Workers Union has called on the Government to drop the GST on imported food and clothing, which it said would result in about 5 per cent job losses.
The new tax, which is scheduled for January 1 next year, will apply not only to imported goods but also to those made by Australian companies domestically.
The Goods and Service Tax ( GST ) is a tax imposed on goods and services made outside Australia.
It has been criticised by the industry as being unfair, as domestic manufacturers are exempt from the GST.
It is also estimated that the GST will cost Australian businesses $30 billion over the course of the decade.
But the Government is hoping that this new tax can bring in a little more revenue.
It is expected the GST can bring about about an additional $8 billion in additional revenue, which could go towards supporting public health, education and other public services, including Medicare and social security payments.
“The GST is expected to bring about $8.4 billion in extra revenue in the 10 years to 2020, according to the National Audit Office, which says the impact will be greatest for the poorest households,” the ABC reports.
“This is in line with previous projections.”
What you need to know about the GST:Topics:tax,business-economics-and-finance,government-and/or-politics,federal-government,government–news,agriculture,food-and_beverage,federation-elections,tas,nsw,australiaFirst posted November 01, 2019 11:15:28Contact Julie AthertonMore stories from New South Wales