Rudd vows to cut GST "burden"

[moyjos]

http://www.abc.net.au/news/2013-08-...burden-of-gst-reporting-for-small-bus/4907854

Is it just me? Or do you think the idea of allowing small business to report (and pay) GST anually will spell disaster? I see soooooooo many businesses who spend all their profit and struggle to come up with a quarterly GST payment. I can see that this plan could cost an awful lot of jobs after 18 months or so when the $$$ for a massive GST payment is just not there.

 

[Ausprop]

I think it's a good idea

 

[Corey Batt]

I think it's a good idea

+1

Less paperwork the better.

 

[Peter_Tersteeg]

A pointless exercise.

I think quarterly lodgement of BAS statements is a blessing in disguise. As a result of this, small businesses are more aware of their cashflow and profitability on an ongoing basis. If there's something going wrong, they don't wait until the end of the next financial year before they realize it and address the problem.

If Rudd wants to reduce the obligations on business compliance, they should look at addressing compliance with ASIC and other areas of business. I doubt they'll be interested in this however, it doesn't sound as good and most of the onerous compliance was actually instituted under the previous Rudd & Gillard governments.

 

[The Fence]

It takes 10 mins to do the BAS each quarter if you have financial software and enter your transactions properly as they occur.

hit the BAS report button and it's there. Whats so hard about that?

I couldnt care if it had tio, be done monthly. 10 mins.....easy.

I dont even use paper, it's all done from Quicken straight to the ATO portal.

 

[geoffw]

Is it just me? Or do you think the idea of allowing small business to report (and pay) GST anually will spell disaster?

It's reporting annually- but paying quarterly, based on GST paid in the previous year- similar to provisional tax.

 

[The Fence]

Talk about reducing paperwork why dont they just axe the new taxable payments reporting of contractor payments imposed upon the building and construction industry?

Slipped that one in last year didnt they.

That's what I call onerous paperwork for nothing.

 

[geoffw]

Talk about reducing paperwork why dont they just axe the new taxable payments reporting of contractor payments imposed upon the building and construction industry?

Wasn't the idea of that to try to cut down the amounts being paid cash in hand? From anecdotal reports, it's succeeding somewhat.

 

[pieman]

The sooner that joke Krudd is gone the better

 

[Crabnet]

Wasn't the idea of that to try to cut down the amounts being paid cash in hand? From anecdotal reports, it's succeeding somewhat.

I think that onerous requirement had a lot to do with union unhappiness about sham contracting.

As far as paying gst annually. Great to have the money in my bank account longer earning interest. Some small compensation for being an unpaid tax collector on behalf of the government.

 

[josko]

Bad idea.

Badly thought out...hmmm I see a pattern....

 

[Tony3008]

I'm open to being put right, but to me this GST change just sounds like a gimmick. AIUI the change affects businesses with a turnover of $2m-20m, so not that small. Any business that size (and most of any size) has its accounts on computer so surely completing the tax return is a question of the accounts program spitting out the numbers and you completing the return.

My current business doesn't have GST (export only and too small) but in the UK it was that simple. It would only have been a major hassle if you didn't keep your accounts up to date - in which case the fault is yours, not the government's.

In the UK the government has gone the other way with what we would call PAYG. Monthly returns and payments are now required as in too many cases businesses folded having not passed over significant amounts of deducted tax.

 

[pursefattener]

http://www.abc.net.au/news/2013-08-...burden-of-gst-reporting-for-small-bus/4907854

Is it just me? Or do you think the idea of allowing small business to report (and pay) GST anually will spell disaster? I see soooooooo many businesses who spend all their profit and struggle to come up with a quarterly GST payment. I can see that this plan could cost an awful lot of jobs after 18 months or so when the $$$ for a massive GST payment is just not there.

Yes I would agree .

I remember back when the gst first came in we were so worried that we set up another account just to hold the gst in so we could be sure .

No one likes surprises .

 

[Scott No Mates]

It's reporting annually- but paying quarterly, based on GST paid in the previous year- similar to provisional tax.

I'm glad someone was listening to the detail. The mooted change is BS. Annual reporting (yeah so what, if you have your accounts in order monthly/quarterly is no issue). The catch (just like provisional tax), is the ATO will increase your gst take by 10% on last year's return. NASTY STING IN THE TAIL.

 

[chrispy]

I have been doing this for a few years ... It won't change for me. I pay quarterly based on previous year and report annually...where a small business fluctuates during the year it works out better, evens out the payments

Chris

 

[geoffw]

I have been doing this for a few years ... It won't change for me. I pay quarterly based on previous year and report annually...where a small business fluctuates during the year it works out better, evens out the payments

Chris

I didn't know that this was an option. We have one commercial property now in an entity which is registered for GST because we had to do so when acquiring the property as a GST free going concern. Turnover is well below the threshold. We will have two income transactions every month with very few outgoings and will have to pay an accountant to lodge it. (MYOB Is not worth getting- will saasu do the job including submitting returns?).

Previously when we had the business a bookkeeper prepared all the books, and we had to pay the accountant to review and submit the quarterly returns. Annual returns would have worked well for us.

The entity had the business last year, so I wouldn't want to pay quarterly based on last year for a little while yet.

 

[turk]

I didn't know that this was an option. We have one commercial property now in an entity which is registered for GST because we had to do so when acquiring the property as a GST free going concern. Turnover is well below the threshold. We will have two income transactions every month with very few outgoings and will have to pay an accountant to lodge it. (MYOB Is not worth getting- will saasu do the job including submitting returns?).

Previously when we had the business a bookkeeper prepared all the books, and we had to pay the accountant to review and submit the quarterly returns. Annual returns would have worked well for us.

The entity had the business last year, so I wouldn't want to pay quarterly based on last year for a little while yet.

Cancel the GST registration.

 

[The Fence]

Cancel the GST registration.

and as a result the red tape.

Who needs krudd in this instance?

 

[Shaneelastic]

A pointless exercise.

I think quarterly lodgement of BAS statements is a blessing in disguise. As a result of this, small businesses are more aware of their cashflow and profitability on an ongoing basis. If there's something going wrong, they don't wait until the end of the next financial year before they realize it and address the problem.

If Rudd wants to reduce the obligations on business compliance, they should look at addressing compliance with ASIC and other areas of business. I doubt they'll be interested in this however, it doesn't sound as good and most of the onerous compliance was actually instituted under the previous Rudd & Gillard governments.

Im with you here, whilst there would be some who can manage it, i believe most couldnt.

 

[Strannik]

if people can't manage their finances over a period of 1 year, should they be really running a business?