TAX changes will reduce the cost of producing goods and services for export by $4.5 billion per year, according to a Federal Govern-ment estimate.
Austrade general manager of corporate affairs Craig Symon said goods physically exported from Australia and services consumed outside Australia would not be subject to GST.
“Tax change is good news for exporters as it will reduce the cost of producing goods and services for export by removing numerous indirect taxes including wholesale sales tax, financial institutions duty, debits tax, some stamp duties and state taxes,” Mr Symon said.
“Exporters, like other enterprises, may need to revise their accounting system, look at possible changes in buyer behaviour in the lead up to the introduction of the GST, consider cash flow implications and look at the contractual arrangements currently in place with suppliers and buyers.”
Mr Symon said Australian exporters would have to pay GST on inputs to their business.
The GST paid will generate an input tax credit that will be refunded by the Australian Tax Office every month or quarter, based on the turnover and preferences of the business.
Enterprises with an annual turnover of more than $20 million will be required to submit returns every month.
Enterprises with an annual turnover of less than $20 million will be required to submit quarterly GST returns by the 21st of the following month. These companies may elect to submit returns on a monthly basis.
Registration with the ATO is required for enterprises with annual turnover of $50,000 or more. Registration is optional for businesses with an annual turnover of less than $50,000, although unregistered enterprises cannot claim GST credits.
