Sales tax legislation does no favours for newcomers

Sales tax legislation does no favours for newcomers

As reported in ARN last week (December 3, page 1), the Australian reseller community is still awaiting a definitive parliamentary announcement concerning changes to sales tax legislation.

The ATO claims that certain amendments have been passed through parliament but it is unclear precisely what these are at the moment.

Proposals currently under review include restricting the issue of exemption certificates to wholesalers which have been operating for three or more years and to organisations where at least one registered director is an Australian citizen.

Some Australian dealers have expressed concern that the changes may create disincentives for newcomers to the channel, but Colin Talber, managing director of Melbourne-based distributor Chelsea Springs disagrees.

He said that wholesaling is not a business which can be set up easily in under three years.

He added that, ideally, if the government maintains the essence of key suggestions from the industry and carries them through Parliament, the industry will transform into a much more "level playing field".

"The industry must be cleaned up," Talber said.

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