I see this increase in GST as potentially disastrous for many Small Businesses, and the increase would need to be immediately passed to the already struggling consumer.
This morning I read a story in the Qld Courier Mail (Federal Government Offers Deal To Cut State Taxes) which talks about Qld and Vic state governments opposing the proposed increase in GST (up by 50% from its current 10%) to a massive 15%.
Will Increasing The GST to 15% Give You A Bad Credit Score?
Sure, the Federal Government is suggesting a cutting of the Payroll Tax and Stamp duty, but has anyone actually done the numbers to see how it would affect the largest employer in Australia – Small Businesses?
A small business that turns over say, One Million Dollars ($1,000,000.00) per annum (or less) is unlikely to ever see any real benefit from the cuts in payroll tax or stamp duty but will feel an immediate impact with the GST increasing by 50%.
If that Small Business was paying 10% GST on all income now, the additional $50,000 it will need to find when the Federal Government hikes up the GST to 15% is equivalent an entire annual salary for another struggling Aussie Family. If the Small Business does not add the 5o% Tax increase to its’ prices, it’ll likely have to lay off another staff member.
This means more people hurting, more households living below the poverty line, more credit card bills going unpaid, more bad credit ratings.
Can someone tell me how this tax will benefit the country if Text small businesses around Australia may each have to lay off a staff member?