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Farmers should factor in GST now



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The National Farmers’ Federation has warned that farmers and other small business operators should factor the GST into their planning as soon as possible when entering into contracts.

NFF President, Ian Donges, said that, if the GST legislation was passed within the next few months, it would apply to all supplies after 1 July 2000.

“The GST would take effect from that date, even if the contract is entered into today”, Mr Donges said.

“Farmers and other small business operators who enter into long-term contracts should ensure that the GST is provided for”, he said.

“In most cases, GST will be payable to the Government irrespective of whether the farmer has collected the additional 10 per cent or not. Failure to provide for GST in a long term contracts will be expensive”.

“On the positive side, farmers may be entitled to GST input credits for supplies received after 1 July 2000 although the contracts may have been signed before that date”, Mr Donges said.

“It will be important for farmers to ensure that the GST component of such ■

transactions is identified, so that they can claim back the GST paid when the new tax system is introduced”, he said.

For further information:

Bob Douglas Director, Rural Policy, NFF 02 6273 3855 0418 437 741

Ian Donges President, NFF 02 6273 3855 0419 613 349

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NFF House 14-16 Brisbane Avenue BARTON ACT 2600

ΡΟ Box E10 Kingston ACT 260-1 AUSTRALIA

Tel 61 2 6 2 -3 3853

Fax 61 2 6273 2331