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    How GST Works

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    Trang Thanh Nguyen
    GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia. The tax is added to the price at each stage of production and distribution. Businesses collect GST from customers and pay the amounts to the Australian Taxation Office (ATO). The ATO then distributes the funds to the federal and state/territory governments to support services like healthcare, education, transportation and infrastructure.

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    How GST Works

    Uploaded by

    Trang Thanh Nguyen
    129 views2 pages
    GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia. The tax is added to the price at each stage of production and distribution. Businesses collect GST from customers and pay the amounts to the Australian Taxation Office (ATO). The ATO then distributes the funds to the federal and state/territory governments to support services like healthcare, education, transportation and infrastructure.

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    How GST works

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    How Gst Works

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    GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia. The tax is added to the price at each stage of production and distribution. Businesses collect GST from customers and pay the amounts to the Australian Taxation Office (ATO). The ATO then distributes the funds to the federal and state/territory governments to support services like healthcare, education, transportation and infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    129 views2 pages

    How GST Works

    Uploaded by

    Trang Thanh Nguyen
    GST (Goods and Services Tax) is a 10% tax on most goods and services sold in Australia. The tax is added to the price at each stage of production and distribution. Businesses collect GST from customers and pay the amounts to the Australian Taxation Office (ATO). The ATO then distributes the funds to the federal and state/territory governments to support services like healthcare, education, transportation and infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    how gst (goods and services tax)

    works 10%
    on most g ods
    and servicesoso
    or consumed inld
    australia

    sells goods
    or provides
    sells goods and sells goods and services and
    charges gst charges gst charges gst

    importer / manufacturer wholesaler retailer / service provider consumer

    gst on gst collected gst collected gst collected


    imported less gst paid less gst paid less gst paid
    goods
    police and
    ambulance

    ATO
    public
    department of transport
    immigration
    and border
    protection
    housing

    roads

    distributes
    gst collected

    total gst collected australian government states and territories


    gst
    example
    Total value of final sales
    GST on final sales value ($110 ÷ 11)

    Total to be remitted to the ATO


    $110
    $10

    $10

    ATO
    local wool farmer GST paid $-

    $1
    Sells wool to clothing GST Collected $1
    manufacturer for
    Payable to ATO $1
    $10 + GST $1

    clothing manufacturer $8
    Buys from local wool farmer for GST paid $(1)

    $ 11
    $
    $10 + $1 GST GST collected $2
    Sells jumper to retailer for Payable to ATO $1
    $20 + $2 GST = $22
    $1

    $ 10
    $8
    retailer
    $$ 88
    Buys from clothing manufacturer GST paid $(2)
    for $20 + $2 GST GST collected $10
    Sells to consumer for Payable to ATO $8
    $100 + GST $10

    $ 10

    $ 10
    consumer
    $ 10
    Total GST received by the ATO
    Buys from retailer for
    $100 + GST $10 = $110
    JS 38132

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