Australian Gst Essay

However, these long and short term economic improvements are only what is predicted to happen and there negatives to the reduction in income tax. A factor that the government must take into account is the budget deficit, can the government afford to simply cut income tax that is a large source of revenue for the budget. A worsened budget deficit could have devastating impacts upon the economy, for example less people able to have the benefits they require, (this would also reduce demand in the economy as those on benefits generally spend the money they have as they do not have spare to save, this may damage the economy even further) or a reduction in money towards health care. Also, a reduction in income tax does not necessarily mean

Microeconomic policies promote the efficient operation of markets as the most effective mechanism for achieving efficient allocation and use of resources, raise productivity and increase aggregate supply. Increased aggregate supply will result in decreased inflationary pressures and increased international competitiveness as Australian producers are able to supply international markets with a greater volume of goods at lower prices. Greater export earnings will consequently improve Australia’s terms of trade, and will decrease the current account deficit. Microeconomic reforms that promote increased competition in both domestic and international markets will also encourage greater innovation and cheaper product, which will benefit consumers. Increases in productivity and aggregate supply will also result in improvements in labour productivity. Higher productivity and greater export earnings will result in wage increases for Australian labour, and subsequently living standards will improve. As a result of higher wages, aggregate demand will increase thus creating further opportunities for increases in

Since its legislative inception in 1999 by the Liberal/National Howard government, the GST has formed a central role in Australia’s taxation regime. In 2014-15, revenue from the GST

The current tax policy in the United States is very confusing and it is very costly for our government to administer it. It is in the best interest of our country and its citizens to revise or replace our current tax policy.

The most obvious and enduring argument for supporting this reform agenda of increasing the GST’s rate and broadening the base is that it will increase federal taxation revenue by an estimated $44 billion. Proponents argue that this increased revenue could be put to productive use by state governments through covering shortfalls in education and healthcare budgets and that it would ultimately act to make the budgetary outlook in Australia more sustainable. Moreover, many adherents suggest that the issue of repairing Australia’s current account position has become far more urgent in recent years as a result of the large Keynesian stimulus expenditures performed in response to the Global Financial Crisis (Karunaratne 2010). Paradoxically, through using budgetary repair as the primary justification for this reform, supporters of modifying the GST are subtly undermining their own argument once the corresponding weaknesses of the Grattan plan are examined. Due to the aforementioned regressive nature of sales taxes, the GST reform package includes targeted compensatory payments and tax cuts that are designed to ensure that the bottom 20% of households by income are not severely crippled by the increased tax burden that a higher GST would produce in isolation. This necessity to

Before reading the paper, I had no idea what “horizontal equity” and “vertical equity” were. These terms were described in detail at the beginning of the paper and allowed me to more thoroughly understand the key points that the authors made. When explaining how certain parts of the Australian tax system function, the authors made analogies to compare the tax system in Australia to that of other countries, such as the United States. However, some words and terms that the authors used were not clearly defined in the text. Luckily, I have had experience with some of the vocabulary words that the author used, such as "tax burden” and "progressive income tax system". Although, When it came to terms like “marginal income tax”, I had to do further background research so that I could gain an in-depth understanding of what the authors were saying. The authors state, "at the end of 2012, the marginal income tax rate for a person on average weekly earnings had risen to 37%". This left me wondering what marginal income tax is, and why Australia’s marginal income tax had fluctuated so much; neither of these items were explained in the paper. I believe that an average reader, with very little tax or business knowledge, would be unfamiliar with a large majority of these terms. If I were the authors, I would more clearly define the terms that I commonly used throughout the

The author firstly points out the problems of tax system. Too complicated, too many special allowances and specific taxes, and too much money drained out of the pockets of working Australians. The author cites many examples, such as national insurance, tax accountancy guides called ToUey's, the Byzantine complexity, the final report, The Single Income Tax, to state the necessity to propose a very radical yet necessary change to how the government raises taxes, aimed at making the system cheaper, fairer and more legitimate. The cost of complexity is high and, in addition, complexity has led to the tax system having lost legitimacy as many people do not even really understand how much tax they should pay, let alone how much others should pay. That opacity, a direct consequence of complexity, inevitably leads many to suspect others of not paying their fair share. Data is listed to support the view that the complicity of tax system has damaged the legitimacy of the

The United Kingdom has developed to become one the highest taxed nations across the globe despite impaired competitiveness and stifled economic growth. Unlike most OECD countries that have lessened their tax burdens since 1997, UK taxation has increased, which has resulted in reduced competitiveness of the country’s position as a low tax regime. The other characteristics of UK taxation include forcing taxpayers into higher rate tax bands, which enforces higher tax rates for more people. However, in the past few years, there have been debates and controversies on whether the United Kingdom government should restore the 50 percent additional rate of income tax. This debate or controversy has been characterized with arguments and counter-arguments in favor and against such a move respectively.

Australia’s tax system is in dire need of reform and the way in which the system is altered is set to be one of the major topics of debate in the coming year, leading up to the Federal Budget in May and the Australian Federal Election in the latter half of the year. One of the proposals is an increase in the GST from its current 10% up to 15%, as part of the nationwide tax reform.

GST will reduce tax burden on producers and foster growth through more production. This double taxation prevents manufactures from producing to their optimum capacity and retards growth. GST would take care of this problem by providing tax credit to the manufacturer.

Basic goods like rice, sugar, some meat, vegetables, basic medicine and baby powder are GST exempted. Due to the exemptions, the calculation of GST is done at the product level and not at the total consumption amount. GST charges also must be displayed clearly to show the amount charges so that it is clear to the consumers on the products charged and exempted from GST. All these measures will improve transparency at all levels and improve collection of overall taxes. According to the Custom’s Department, government expects collection of GST to be above RM23billion by end of the year. GST is expected to contribute to the total target of RM45.44billion tax collection for the

There has been confusion about what a carbon tax is and does; perhaps the word ‘tax’ is to blame. Unlike most taxes it’s not aimed at raising revenue but at changing behaviour, to make it more likely that Australia will meet its targets for reducing greenhouse gas emissions. Australia has more reason to do this than most other countries. We are the biggest per capita emitter of carbon dioxide among developed nations, and the world’s 10thbiggest emitter overall, despite our small population. In 2009 we emitted 19.64 tonnes per person, compared with the world average of 4.49 tonnes or China’s 5.83 tonnes. We have already experienced the effects of more extreme weather – from droughts and bushfires to floods, and as a coastal nation we

This article is generally informing Singaporeans the importance and the need to declare and pay the taxes of their goods or souvenirs purchased overseas when they return home from their holidays. The items are subjected to a 7 percent Goods and Services (GST) tax regardless whether the goods purchased are for their own use or not. However, the government has implemented a form of GST relief for Singaporeans to allow them to bring a certain combined total value of goods purchased to be brought back home without having to pay tax. The GST relief is granted to Singaporeans for goods valuing up to $600, provided they spend more than 48 hours

The increase in VAT to 20% is a major issue for our concept, as it results increases in cost of goods. This is due to the coalition’ government’s policies of reducing Britain’s budget deficit, causing reduction in disposable incomes as wages stagnate. (Finch, 2010) This will fuel higher inflation which at 3%, is above the 2% target, fuelling higher costs for basic goods. Furthermore unemployment averaging 7% is an important issue to take into consideration for our business. The consequences of unemployment results with consumers struggling with daily expenses, therefore unable to purchase premium goods.

I woke up one morning to prepare for school; however, I realized that the airwaves were filled with anger. Most people in my neighborhood were glued to their radio sets, waiting impatiently on the government to confirm the rumors, about its decision to replace the current sales tax rate with a new one; the Value Added Tax. Around midday, the government finally announced its decision to amend the tax system and outlined in detail various segments of the new tax policy. Under the new tax structure, taxes will be levied on every supply of goods and services made in Ghana, every importation of goods into the country and the supply of any imported service. The new tax system is meant to