Good morning Ms Donaldson and grade twelve economic students. Hi, my names Candyce Pearson, a lecturer from the university of Queensland, and I am here to discuss the New Tax System, or more specifically the GST.As my previous speaker ogie said, I will give a brief yet incisive overview of the GST system, what GST is and how it works.The New Tax System was introduced in Australia on 1 July 2000 to provide a fairer and more consistent tax system for all Australians, help make Australian businesses more competitive internationally, and ensure a secure and broad Revenue base for the States and Territories to supply services such as roads, hospitals and schools. A major element of The New Tax System is the goods and services tax (GST) which enables the Government to reduce income tax, abolish a range of hidden taxes and ensure that the tax is paid by those who consume goods and services.However, what exactly is GST? GST is a broad-based hidden tax of 10 percent on the supply of most goods; services and anything else consumed in Australia.GST is paid at each step in the supply chain, with businesses charging GST in the price of goods, services or anything else they supply. However, if you are Registered for GST, you can claim input tax credits from the Australian Taxation Office (ATO) for any GST included in the price you pay for goods, services and anything else you buy for your business or enterprise. This means that the GST liability flows along the supply chain and is included in the price paid by the consumer, who cannot claim input tax, credits.However, the liability to pay GST rests on the supplier of goods and services, not on the customer. In other words, even if you do not include GST in the price of goods and services you supply, you are still liable to pay it to the ATO.Everyone has to pay GST on taxable importations. This includes entities (that is, businesses, charities etc) that are registered for GST as well as those that a...
