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Support for GST

THE majority of WA small businesses support the GST, despite the pain they believe it will cause them in the short-term.

A Business News survey, conducted by Asset Research, found 63.8 per cent of the 300 small businesses surveyed favoured the new tax. Nearly 48 per cent supported the tax before its introduction.

However, 44.4 per cent believe the GST will hurt their businesses in the short-term.

Negatives cited included cash flow concerns, increased time, implementation and administration costs, decreased buyer confidence, increased business costs, increased customer costs, and falling sales volumes.

Nearly 9 per cent were unsure of the effect the new tax would have on their business and only 6 per cent believed the GST would have a positive effect.

The positive responses were from exporters and businesses that have had the sale price of their products reduced. Some believed the GST would also help them keep track of their business activities.

However, only 24 per cent felt the GST would hurt them in the long term. Most believed it would have no effect.

Accountants are set to be busier with 56 per cent of respondents saying they planned to see their accountants more often.

The majority of respondents (90.1 per cent) said the GST would not cause them to lay off staff while only 1.4 per cent believed it would cause their business to close.

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