Re: Austrains site update and GST.

["Werris Creek" <werriscreek@bigpond.com.au>]

Alan Bone wrote in message <>

In theory, those who have prepaid should receive a refund with their
>loco as the price they have already paid should have included 22.5%
>sales tax, which will no longer apply after 1st July, only GST.
>Prices of model trains SHOULD be reduced somewhat, but I advise you
>not to hold your breath while waiting, as I doubt if it will actually
>happen.
>
>This is how I understand it is supposed to work,  I am probably wrong,
>but should not be too far out.
>
>Guesstimation of pricing
>
>Current way
>Wholesale price 200.00
>Sales tax   22.5% 45.00       = $245.00
>
>Retailer profit      say 25% 61.00
>
> Price you pay    $306
>
>Post GST
>Wholesale price 200.00
>GST   20.00 = $220.00
>
>Retailer profit      say 25%        55.00
>based on old profit margin as I believe they are allowed to retain the
>same ratio, & not use the less tax price
> =$275.00
>GST        27.50
>
> Total                  $302.50
>
> Theoretical difference in your favour        $   3.50
>     As I said,  don't hold your breath waiting for a refund.
>
>Retailer only sends $7.50 to tax ripoff merchants as he has already
>paid $20 to the wholesaler, who should have already paid it to said
>ripoff merchants.
>
>   Not being the trusting type, I believe all prices will go up by
>about 15%,  if so, I stop buying, retailer loses sales of about $500
>pa and I have almost enough cash to pay all the other increases on
>essentials like electricity, water, rates etc.       My standard of
>living will go down dramatically as I am a self funded retiree and the
>1.2% increase in my income over the last two years has long ago been
>offset by govt. charges, higher petrol prices and tax.   Whoop-de-doo,
>my tax bill may go down to zero from $49.50 with the new rates, most
>generous.

Alan

The above is accurate in the case of a locally manufactured product, however
where hte product is imported the importer/wholesaler paid sales tax on an
amount based on the ex-factory price in China (for example).

The result was an amount of sales tax far below the 22.5% on 200 mentioned
above.
As Austrains has pointed out the 10% GST calculated on the retail price will
in fact be much higher than the old 22.5% paid by many importers.

The result will be that many imported prices may go up under the GST range.
Local manufacturers would probably argue that the GST puts them in a better
position against imports that now must carry the full 10% but this will be
little consolation to us modellers who will be paying more.

Regards

Werris