Answer To: pls give me with turnitin report
Himanshu answered on Jan 07 2021
Good and Service Tax
Goods and Services Tax (GST) is a 10% levy on certain products, facilities and other products purchased or consumed in Australia. If any company is certified with GST, company must receive this additional money (one-eleventh of the selling price) from the consumers. Company pay this extra money to the Australian Taxation Office (ATO) when it is requested. The key aim was to reform and revise the current sales tax system and numerous other state and federal taxes with a new 10% tax. In exchange, all GST transactions will be circulated by the federal government to each state and region. GST, which has been released by the government as 'one country, one taxation,' targets to have a streamlined single taxation system in accordance with the tax structure applied around the world in a range of major economies. This single tax has enabled to optimize numerous indirect taxes and has improved business performance (J.Austl.Tax'n, 2000) Some categories of goods and services could be offered without the addition of GST, such as: Foodstuffs such as fruit and vegetables, beef, certain dairy products, spices and sauces, education and services for schooling, some pharmaceutical and clinical goods, financial goods and facilities. Benefits of GST, Growth, Revenue and price stability (JohnBreen,Seers,Roberts, 2002)
Some of the major countries like Australia, Canada, New Zealand, Singapore, Japan, Korea, United Kingdom etc., it has found that they have done fairly well in most of macroeconomies indicators. The type of GST framework varies from country to country. For example, Australia adopted the least neutral, New Zealand most neutral while Canada GST was intermediate. Most of these countries experienced a temporary spike in their price levels immediately after the GST implementation. However, price levels stabilized and then declined after few years and in the medium term. The inflation rate also stabilized at lower rate after the implementation of GST/VAT. Other macro indicators like GDP growth rate, Fiscal balance, etc., have improved in most of the countries particularly in case of Canada, Australia, New Zealand, United states and Korea. Therefore, GST has been made these economies more competitive, helped improve exports, generate revenue and stabilized prices.
Australia Model of GST
Australia implemented GST on 1st July, 2000 under the aegis of the Howard Government. Under the Australian Model of GST, value added Tax (VAT or GST) is levied on the supply of goods and services in Australia, including the imports of goods or services. But exports are not levied with GST. In other words, imports of goods and services attracts the levy of GST but exports are exempted from GST.
Feature of Australia Model of GST
· GST is levied on the supply of goods and services in Australia.
· GST is levied on imports of goods or services into Australia.
· GST is not levied on exports of goods or services from Australia.
· Rate of GST is 10 percent.
· GST is administered by the Tax office on behalf of the Australia Government.
· Revenue generated from GST is appropriated to the states and union territories by the Australian Government.
· Every person the Turnover of whom exceeds A $75,000 is liable for registration under GST.
· In case of default, 1/11th of the income and some form a penalty is paid to the government.
· The provision of credit back (i.e., adjustment of input tax out of output tax) is allowed under GST.
· The records have to be maintained for at least a period of 5 years for the purpose of GST.
Effects of GST on Australia Economy
Australia experienced a positive outcome from the implementation of GST since 2000. The macro economies indicators reveal that there was improvement in GDP growth rate, Fiscal balance, Current account balance, Tax GDP ratio, Tax revenue generated.
Earlier
Tax employed on Income
Indirect Taxes includes Sales, Entertainment, Service, Custom duty, Excise duty
Good and Service Tax (includes all the indirect taxes as per the tax slab)
Example,
Tax is 10%,
Producer produces goods at price of $50,
Profit he added $50
Total costing will be $100 + 10 (10% tax on 100) = $110
Wholesaler,
Added profit = 10
Now costing will be, 110+10 = 120 + 12 (10% tax on 120) = 132
Retailer will also add profit which is equal to $10
Now costing will be 132+10 = 142+14.2 (10% tax on 142) = 156.2
Final costing to consumer will be $156.2
Now after GST,
Tax will be added to value addition i.e.,
Producer, $50 + $50 = 100 + 5 (tax on $50)
Wholesaler $105 + 10 = 115 +1 (tax on $10)
Retailer $116 + 10 = 126+1 (tax on $10)
Final costing to Consumer will be $127.
As we can clearly see, how costing of the product changes down by approx. 18%.
1st July 2017, Australia has updated GST reform, goal of the Australian Government in...