Simplified Accounting for the Goods and Services Tax ('GST') in the Retailing Industry: Some Food for Thought

Abstract

The introduction of a Goods and Services Tax ('GST') in Australia has already had a profound impact on many sectors of the economy that now have to understand and operate within the complexities of this new system of indirect taxation in Australia. A major consideration with the introduction of the GST has been the changes in accounting and computer systems that have become necessary to accommodate this new tax. The changes have been accompanied by higher administrative and compliance costs for businesses across sectors in the economy. This article looks specifically at simplified accounting measures that were introduced by the government from 1 July 2000 to assist business people in retail food businesses such as milk bars, bakeries, sandwich shops, and convenience stores, where some products are bought and sold GST-free. The simplified accounting methods are designed to save businesses in the retail industry time and paperwork.