Small business GST red tape being cut

If you're finding GST a problem, a solution may have been found…

Many more small businesses will be able to complete their GST paper work more simply under a government bill introduced into federal parliament on Wednesday.

Revenue Minister Peter Dutton said a wide range of small businesses would be able to reduce their compliance costs. Mr Dutton said an amendment to GST law would allow small businesses with a turnover of less than $2 million and which use a mixture of taxable and GST-free supplies to adopt a simplified accounting system.

At present, the simpler system is only available to food retailers and charities. The system allows businesses to apply a ratio rather than having to identify the GST status of every input. Mr Dutton said businesses that were expected to benefit included goods and services exporters, optometrists, retirement village operators, child care operators, chemists, educational institutions, travel agents, medical appliance suppliers and health supplement shops.

In moving that debate be adjourned, Labor frontbencher Simon Crean said he was delighted that the government had adopted a longstanding Labor policy.Source: Sydney Morning Herald June 2007.

Source: Sydney Morning Herald June 2007

Related Keywords: Finance & Cash Flow

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