Fed:ATO launches easier GST accounting for small food retailers

AAP General News (Australia)
12-26-1999
Fed:ATO launches easier GST accounting for small food retailers

CANBERRA, Dec 26 AAP - The Australian Taxation Office today outlined proposals to reduce
GST accounting costs for small food retailers.

Deputy Tax Commissioner for GST, Rick Matthews, said the simplified accounting methods
would be available to retailers of food who had an annual turnover of up to $1 million
and who did not have adequate point of sale equipment.

"Most food retailers will be able to do their accounting for GST-free and taxable supplies
easily, using their current point of sale electronic scanning systems or cash registers,"

Mr Matthews said.

"Some may not have that equipment at the start of GST, but most propose to upgrade
their equipment in the next few years."

Over 150,000 small retailers selling food were expected to be eligible for the easier
accounting methods.

Mr Matthews said the ATO was consulting with the food industry to tailor the new accounting
methods to three different groups of small food retailers.

"The methods will avoid the need for eligible retailers to identify and separately
track GST-free and taxable sales," he said.

"They will be able to calculate the percentage of their turnover that relates to taxable
sales and calculate the GST on that basis."

Simplified methods would also be available to retailers such as sandwich bars who produced
taxable food from GST-free ingredients.

"Even though these retailers will not have to identify at the point of sale which product
is GST-free and which is taxable, they will have to comply with the requirements of the
ACCC about setting the prices of individual products," Mr Matthews said.

AAP eg/pjs

KEYWORD: TAX RETAILERS

1999 AAP Information Services Pty Limited (AAP) or its Licensors.