A re-elected Rudd Labor Government will cut red tape for small and medium businesses by reducing the paperwork burden of the Coalition's GST.
Federal Labor's proposal will see a reduction in the number of times that small and medium businesses will need to lodge GST returns from four times a year to just once.
Businesses with a GST turnover under $20 million a year will be allowed to lodge their Business Activity Statement (BAS) once a year from 1 July 2014. This is a ten-fold increase from the current $2 million turnover threshold for annual lodgement.
Significantly, these businesses will be able to pay simple instalments based on GST paid in the previous year, and lodge an annual BAS at the end of the financial year to reconcile any difference.
This aligns GST more closely with the Pay As You Go income tax system and means businesses will no longer have to make complex GST calculations throughout the year.
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