Why Is The Cost Of GST Compliance So Much More In Australia

The cost of GST compliance is 50% higher in Australia as compared to neighbouring countries. The total cost of Australian GST compliance contributes around 58% of the total compliance cost for small businesses in Australia. Whereas, it costs around 40% to small businesses in South Africa, Britain and Canada. It has been often discussed that the revenue earned through GST can be utilised in community service. Businesses often play the role of ‘unpaid tax collectors’ in case of GST collection. Every year, small businesses pay a cost of around $11950 for collection of GST. According to Mr. Stacey, further changes into Australian tax policy should be able to minimise the cost of GST compliance.

A possible reason of this higher cost could be the fussy process where Australians need to provide details of their PAYG and other details in one single form. The GST limit is also higher in various sectors in Australia. Whereas, other jurisdictions show less expenditure to small businesses in every sector. The whole system of tax collection and tax policy needs to be taken care of in case of Australian small business. These insights were brought out by a research that was funded by Australian taxation office. In future, such research will help in forecasting and revolutionising GST compliance in Australian taxation system.