Re: Austrains site update and GST.

["Graeme Hearn" <iron_horse@one.net.au>]

"Werris Creek" <werriscreek@bigpond.com.au> wrote in message
RVbT4.10505$X4.21515@newsfeeds.bigpond.com">news:RVbT4.10505$X4.21515@newsfeeds.bigpond.com...


> 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
Should there also have been another amount of sales tax paid as the item was
sold to the Retailer.The Sales Tax is payable on the amount after the
importer has put his margin on.
If the total Import price is $100 the importer puts on his margin of say
between 25% and 100% this is the wholsale price which the 22.5% is paid on,
then the retailer puts on his magin which is usualy 50% this then becomes
the Retail Price.
Graeme Hearn