Re: Austrains site update and GST.

[James Forrester <james.forrester@gecms.com.au>]

Alan Bone wrote:
> 
> 
> 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
> 

The theory is that the initial $20 GST is a tax-credit that would be
refunded by the government and hence your calculation is $200 + $61
margin (as original) = $261 plus the 10% GST for a total $287.10.

Or at least that's how the blurb from the ATO says it happens.

James