As we have previously alluded to, the change of GST on 1 October 2010 to 15% is rather more complex and requires more knowledge and planning for business owners than most clients many think.

 

We have had great feedback from the clients who attended our Client Seminar a few weeks ago. For most, it has been an eye opener as to just what is involved – it is not merely a case of changing the GST rate in your accounting systems at the close of business on 30 September and hoping for the best on the 1 October.

To assist with informing you of processes involved and points to think about and prepare for as business owners, we will be issuing a series of tips to enable you to think about how they would apply to your business.

 

GST Increase Tips-

• If you have surplus plant and equipment or other assets you no longer need and have been considering selling, sell them before the 1st October so you pay only 12.50% GST.

 

• To calculate the GST content of $100.00 (inclusive of GST):

- Divide by 7.666 or

- Multiply by 3 and then divide by 23.

In both cases you should get $13.04.

• Currently we add 1/8th to GST exclusive figure or take off 1/9th to the GST inclusive figure, from 1 October you will:

- Add 3/20ths to the GST exclusive figure and

- Take off 3/23rds from the GST inclusive figure