Australia and the GST

Australia and GST, Donaldson and 12th graders economic students, good morning. Hello, my name comes from the instructor Candyce Pearson of the University of Queensland. So I will discuss the new taxation system, more specifically the item service tax. As my previous spokesperson Ozzy said, I will briefly and briefly outline the GST system, what GST is and how it works. The new tax system, which began in Australia on July 1, 2000, provides a more equitable and consistent tax system for all Australian citizens, enhances the international competitiveness of Australian companies, and provides a safe and comprehensive state and region It is aimed at securing. Revenue base is used as road, hospital and school.

One of the many aspects of taxation is the value added tax on goods and services in Australia, the goods and service tax (GST). Prior to the introduction of goods and service taxes, Australia enforced wholesale sales tax (WST) to tax wholesale merchandise. Introduction of goods and service taxes is aimed at filling unfair tax differences between service companies and goods suppliers (GST Australia, 2009). In Australia, the demand curve moves under the tax due to 10% tax on goods service tax collected from purchaser. In other words, the buyer and seller will share the tax burden (Mankiw, 2008).

In Australia, GST imposes 10% tax on most goods and services transactions. It was released on July 1, 2000 and replaced the former federal wholesale sales tax system with the aim of gradually eliminating taxes such as taxes, duties, bank taxes and stamp duties from the state and territory governments . Critics believe that consumption tax is a regression tax that has a stronger influence on the people of the lower income bracket. In other words, the tax revenue is higher than those with more income. Consumption in the first few months of GST began to increase rapidly while hurried to buy products that consumers believe are expensive goods and services. When the tax system was enforced, consumption expenditure and economic growth rate declined and by the first quarter of 2001 the Australian economy experienced negative growth for the first time more than 10 years. But consumption quickly returned to normal condition

After the implementation of goods and service taxes, Malaysia and Australia saw wars similar to the declining growth rate. Even if the initial GST income reported during the first two months was 900 billion rupees, that is not a fact but it may fit in the actual figure for February / March 2018. The specific impact of GST is expected to occur only throughout the fiscal year. After that, it is impossible to call GST as an unprecedented success or complete failure.