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John Smith
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Torpedo wrote on Jan 26 th, 2014 at 9:42pm: John Smith wrote on Jan 26 th, 2014 at 9:39pm: Torpedo wrote on Jan 26 th, 2014 at 9:34pm: John Smith wrote on Jan 26 th, 2014 at 9:30pm: Torpedo wrote on Jan 26 th, 2014 at 8:16pm: John Smith wrote on Jan 26 th, 2014 at 7:38pm: Torpedo wrote on Jan 26 th, 2014 at 2:48pm: Swagman wrote on Jan 26 th, 2014 at 2:34pm: Torpedo wrote on Jan 26 th, 2014 at 12:41pm: ok, here is the reality.
Currently we are paying around 5k rent a month, 3k rent/mortgage, we are not holidaying or allowing ourselves any luxuries, we pretty much work for the kids education, roof over our heads, food, rent and ... yes, you guessed it 10% GSfknT!
Now, normally we have to extend the GST repayments, as we constantly, and I mean forever living on credit, this vicious circle is scary, as our kids are still very young.
The 10% is 5-6k out of our pockets every QTR, sometimes more, depends on the time of the year, and we struggle to pay. Not to mention Income tax!
Should the 25% hit us, it will kills us and our business, leave us and our kids in the hands of fate.
Next door business neighbours are already at this stage, the premises have been 'for lease' the last 6 months.
It's unaffordable.
But go on, why not, let's test it. The GST collected by your business should exceed the GST paid by your business unless your business is unprofitable. The trade-off of a high GST is low marginal tax rates and low company tax rates. The business is profitable, but the more the profit the more GST, isn't that right. Example: Total sales in a Qtr = $150000 Total purchases = $80000 total GST is $6363 add PAYGs another 3-4 gran, here is your share of $10K so seems like it's better if business produces less sales but increase it to 25%, you will be up to $30K seems reasonable? or am I missing something? the gst you collect IS NOT YOURS ....you cannot spend it. if you have trouble distinguishing between your money and GST, I'd suggest that at the end of every day, you take .11% of the days takings and put them into a seperate bank account. Come GST time, you'll be able to pay the gst ... depending on how much GST you've paid you may even have some left over that I'd suggest you leave there for when its time to pay your income tax. If your income is not enough with the gst taken out, then it's simply not a very profitable business. I am not saying it's not enough, just saying that 25% is not possible, unless you remove all other taxes, but even then, I don't see how one can manage 30000 or so tax every quater? The business is profitable, it's just not always possible to collect money before the payments are demanded, well, with our business anyway. And by the time you've collected your share, your suppliers have put on stop credit, and taxation office is threatening you life or death. So, with 25% is a definite DEATH it doesn't matter how much it is since you only ever pay it after you've collected it .. what sort of system are you using? Hire a book keeper, or if you have one, replace him/her with one who knows what they are doing. The only affect increased GST may have is it will in the short term decrease demand for your products ... again, I say short term because in the long term, the consumer will get used to it and life will move one. I'm not here advocating increasing GST to 25%, but your arguments for not doing so aren't making a lot of sense to me. no John, nothing to do with bookeeper, neither with understanding money vs GST... you simply don't have any idea what small business is. If it was so simple, many of these businesses would be operating until now, but what we are seeing is more and more closing down Because rent, taxes and wages just don't make sense anymore, and you defend increase? Short term? Yeah, I will see you you claimed not possible to pay the money before you've collected it, not me. it's just not always possible to collect money before the payments are demandedBy the way Torpedo, I've been in small business of one form or another since I was 27 ... so don't give me crap about I have no idea what small business is. Learn to manage your money instead of looking for excuses. go take another drink, piss head ??? I'll bet you my GST money you've had more to drink today than I have .... moron
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