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Re: [ProgSoc] Buying computers... Before or after GST?
> DodgyCorp sells that $1000 worth of bits to a consumer for $2000, plus
> $200 GST (except that you can't tell the customer that, you have to
> say $2200), and the $200 you collected is output.
Huh? You mean that recipts won't have the GST content marked separately?
I thought that was the whole idea so that everyone can see how much
tax they are paying...
I realise that prices are quoted GST inclusive, which is sensible.
> The moral of the story is that this company stuff will only
> work if you're actually selling stuff too, and getting customers to
> pay your GST.
Yes, you basically have to find someone to pay you for doing your
hobbies, and pay you just a fraction more than the hobby costs so
that the hobby is not officially a hobby. The easiest way to do
this is with sloppy accounting -- you buy a PC, do just enough
development work on the PC to pay for the PC (thus the customer
covers the cost of the PC and the GST too) and then you play Quake
the rest of the time. Strictly you should count the time that you
work and play separately but that is such a pain to do that no
one would bother, and no one can audit it in any practical manner
either (short of installing a time/motion monitor in your house).
They do regard some items (e.g. entertainment expenses) as never
being acceptable for input tax credits.
Given that it was a Liberal govt who finally brought GST to this
country, is it any wonder that the model they chose to use ends up
giving concessions to business? Actually, the concession was already
there but was supposed to be ``plugged'' by fringe benefits tax
(which tends to be impossible to police and unfairly administered).
GST (despite its name) is basically income tax, the main good thing
about it is that it is more difficult to avoid than our current
income tax system. It is not a consumption tax at all.
The whole idea of income tax is basically wrong IMHO, transaction
based taxes are a lot better. Taxing stock market transactions
and foreign exchange trading would drag in a lot of revenue from
what is currently tax-free gambling. Also legalising a lot of drugs
and taxing those would collect what is currently going to pay for
organised crime. The other thing that needs taxing is environmental
destruction: carbon tax, fishing tax, etc. However, abolishing
income tax is far too radical for any Australian government.
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