PUNCH Magazine weekly

Issue 5

Issue 5

Australia currently has the GST (VAT) Accounting for every single transaction ( item date amount with and without GST, archive paper copy,  postage, envelope, staff work to determine) double entry book keeping (not cost accounting )

I can tell you that GST as a tax is the most fruitless time consuming exercise a business owner has the misfortune of having to undertake. On average one must spend 16 hours a quarter (or pay someone) to prepare these records a total of 64 hours per annum. This does not include the unnecessary paperwork involved in calculating the GST on every single transaction when invoicing not to mention tax law, staff work, printer and consumables and paperwork required for every single transaction regardless of the amount

Only an inexperienced businessman would have proposed a tax that places such a burden on business owners. Like so much other bureaucracy it takes up all your free time when you could be out enjoying yourself with your partner, friends and family

As a successful businessman and owner who has run a business in both hemispheres this was the very reason we moved to QLD - at the time it did not have a GST

May I say to the proponents of tax reform AN E-TAX OF 1% ON ALL TRANSACTIONS ADMINISTERED BY THE BANKS IN RETURN FOR THE BILLIONS OF BAILOUT MONEY DURING THE 2008 FINANCIAL CRISIS AS A CONDITION OF THEIR BANKING LICENCE  WITH PRISON SENTENCES FOR EXECUTIVES FAILING TO COMPLY WILL GENERATE MORE REVENUE THAN THE GOVERNMENT WILL KNOW WHAT TO DO WITH AND OBVIATE THE SIX TAX RETURNS EVERY BUSINESS OWNER HAS TO COMPLETE EACH YEAR AND EVERY OTHER INDIVIDUAL

For the information of the Treasurer GST Accounting is not cost accounting and actually interferes with this process by tying up details of goods and services when reordering and those of suppliers for these repeat orders while they are being processed for GST purposes and obviates use of such proofs of purchases ( eg for instruction guarantee and warranty purposes during this time), and ties up business owner and or accounting staff answering queries  in this fruitless task When the abovementioned E-TAX would eliminate all of this work completely and enable more precise cost accounting when assessing materials and labour

Forking over 10% tax on everything regardless of whether a profit has been made must be the most unjust impost in the history of taxation probably for all time 1% on the other hand no one would give a damn - productivity and efficiency would soar immediately

64 hours is a long time to be administering tax each year multiply this by every business in the land you begin to understand the scale of the problem

PUNCH Magazine weekly

With apologies to LONDON and his mate CHARIVARI

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