Save GST on your entertainment expenses

For business owners with significant entertainment expenditure, it is to your benefit to make an entertainment adjustment for the six months ended September 2010 in your September GST return as the GST will be 1/9 of the non-deductible amount instead of 3/23.
If the entertainment adjustment is made at the end of the year (when the annual accounts are completed), the higher GST rate will be used for the whole year, which means that the GST incurred at 12.5% will actually cost you 15%.