The Impact of GST Changes on Business in 2019

GST changes in 2019 will affect various sectors in Australia. Businesses need to understand the impact of these changes on their pricing, tax obligations, and overall financial strategy to ensure compliance while maintaining profitability.

In 2019, Australia implemented significant changes to the Goods and Services Tax (GST) system, impacting various sectors. Understanding these changes is crucial for businesses to navigate their pricing strategies, tax obligations, and overall financial planning effectively.

Key Changes in GST for 2019

Digital Products and Services: The GST now applies to digital products and services supplied to Australian consumers by non-resident suppliers. This change ensures that digital goods and services are taxed consistently, regardless of the supplier's location.
Low-Value Imported Goods: GST is now applicable to low-value imported goods, ensuring that these items are taxed similarly to domestically produced goods. This change aims to create a level playing field between local and international suppliers.
GST-Free Export Sales: The GST-free export sales provisions have been clarified to ensure that businesses exporting goods and services can continue to do so without incurring GST, maintaining the competitiveness of Australian exports.

Impact on Businesses

Pricing Strategies: Businesses need to adjust their pricing to account for the GST on digital products and low-value imports, ensuring compliance while maintaining profitability.
Tax Obligations: Companies must update their tax reporting and compliance processes to reflect the new GST rules, including the collection and remittance of GST on applicable sales.
Financial Planning: Understanding the GST changes is essential for accurate financial forecasting and budgeting, as these changes can affect cash flow and profit margins.

The GST changes in 2019 have introduced significant implications for businesses across Australia. By staying informed and adapting to these changes, companies can ensure compliance and maintain their financial health in a dynamic economic environment.

If you would like to enquire about your GST obligations and strategies for 2019, book a complimentary consultation with DGMS Group.

Global VAT Compliance. (2021). Australia: Changes in GST application for digital product supplies. Retrieved from https://www.globalvatcompliance.com/globalvatnews/australia-gst-withdrawal/
Aitken Partners. (2021). How will your business be impacted by changes to Australian GST on low-value goods. Retrieved from https://www.aitken.com.au/news/how-will-your-business-be-impacted-by-changes-to-australian-gst-on-low-value-goods