How to calculate the GST and GST rate in Australia

Australia’s GST and GST rates have been under the microscope of scrutiny after it emerged the federal government has been misreporting tax revenue. 

In a new report published by the National Taxpayers Union (NTU), the NTU revealed the federal tax system is “totally out of whack” and the Government’s “corporate tax rate is the lowest in the G7” and “not in the top five”.

The NTU has accused the Government of not paying enough attention to the needs of Australian business and has called for a “rebalancing” of the GST system.

“Australia is not a tax haven, and there is no excuse for not paying the GST or the GST rate,” NTU chief executive Richard Carling said.

“In 2017-18, Australia is the most generous tax country in the world and we need to make sure that the economy gets a fair return on our investment in business and innovation.”

“There is no such thing as a fair tax.”

A number of major business groups, including the Australian Chamber of Commerce, the Australian Institute of Commerce and the Australian Industry Group have also called for the GST to be overhauled.

“The Government has not made any effort to change the tax system,” NTUs chief executive Peter Dunne said.

“We are in a world of high-tax, high-debt economies where the Australian economy is the largest.”

“We have to look at how we’re going to make the transition to a new system.”

The NTUs report also highlighted a number of issues that the Government is “unable to address” including “high-cost businesses”, “the impact of the mining boom” and a “lack of certainty” about the GST.

“There are a number issues that need to be addressed, and it’s a problem that needs to be resolved,” Mr Dunne told reporters.

“This is about fairness.

We have to get it right.”

The Government says it will work with the NTUs to deliver a “fair and efficient GST” and said it was “unlikely” it would “change the rate or make any changes to the rate”.

“We’re working with the Government to look carefully at the issues that are raised and make sure the Government has the resources it needs to address these issues,” the Prime Minister said in a statement.

“We’ll continue to do the same with our business and business people.”


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