Restaurants, cafes and caterers will benefit from the announcement of a new GST simplified accounting method to meet their GST obligations and reduce compliance costs, according to the federal government.Around 30,000 restaurants, cafes and caterers with an annual turnover of up to $2 million are now expected to have the option of using a formula to calculate their entitlement to GST credits. This will mean that they will no longer need to identify and record the GST credits on each purchase."The restaurant and catering industry is a very important part of the Australian economy and employs around 219,000 people across Australia. In turn, the industry spends approximately $2.9 billion each year on wages," Bob Baldwin, Parliamentary Secretary to the Minister for Industry, Tourism and Resources, said today."As any small business owner knows, reducing red tape is essential to the effective operation of their business."The SAM accounting method complements other initiatives that are designed to reduce GST compliance costs, such as the option of reporting and paying GST on an annual basis for businesses that are voluntarily registered for GST and in cases where eligible taxpayers calculate GST once a year when they fill out their annual GST return."The restaurant and catering industry is currently implementing an action agenda that is aimed at building industry excellence through a commitment to professionalism, profitability and sustainability," Mr Baldwin said."The action agenda consists of 31 recommendations under the outcomes of Better Business, Education, Employment and Training, Workplace Relations, Marketing and Promotion, and Technology and Innovation."The industry is making great progress with the implementation of this plan and, through measures such as SAM, the Australian Government is demonstrating its support of small business."For more information on SAM visit www.ato.gov.au and, for further information on the Restaurant and Catering Industry Action Agenda, visit www.industry.gov.au.
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