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Old 13-04-2020, 19:08   #1
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GSt (General Sales tax) on pens

Hi

Just got my new pen fees and note that the 5% increase for 2020 has been done on last years as follows (Rounded off) 2019 $6000 + Gst 10% = $6600.
This years $6,600 x 5% = $330 = $6930 x GST 10% + 693.00 = $7623.
Shouldn't it be simply $6000 x 5% = %6300 x GST 10% = $6030.
Plus -- why do we pay GST (Federal tax) on a pen when you pay no GST tax on a property
Gbmacca
Perth Australia
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Old 14-04-2020, 05:47   #2
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Re: GSt (General Sales tax) on pens

No answer for you, but not an Aussie, so I'm kind of curious about the term "pen." Is that what we in North America would call a "slip" or a "dock," perhaps?
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Old 14-04-2020, 06:45   #3
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GSt (General Sales tax) on pens

Quote:
Originally Posted by gbmacca View Post
Hi



Just got my new pen fees and note that the 5% increase for 2020 has been done on last years as follows (Rounded off) 2019 $6000 + Gst 10% = $6600.

This years $6,600 x 5% = $330 = $6930 x GST 10% + 693.00 = $7623.

Shouldn't it be simply $6000 x 5% = %6300 x GST 10% = $6030.

Plus -- why do we pay GST (Federal tax) on a pen when you pay no GST tax on a property

Gbmacca

Perth Australia


G’day from Melbourne and yes, they are having a complete lend of you. Now, being charitable, perhaps they were having a bad maths day, however their increase is way more than 5%. They’ve added 5% to last year’s “including GST” price and then charged 10% GST on top of an already GST inclusive price. DOH.

If they had of just calculated 5% on $6,600 they would have been correct, but to then add the GST on top again is not correct.

A polite note to point out the error might get you the correct result.

Having said that, mention that annual price to a Melbourne or Sydney yachtie and they’d tell you they’d love to pay even the inflated price. Location is everything. I used to own a Farr 40 out of MHYC.

The reason you pay GST on the pen is because it is a service, you’re renting the pen or being provided with services in relation to the pen, not buying the pen. FYI, if you purchased a commercial property, you would pay GST on that. You don’t pay it on residential property, it’s exempt.

Stay home, stay safe.

Regards
David
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Old 14-04-2020, 18:49   #4
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Re: GSt (General Sales tax) on pens

Thanks guys for your responses.

Firstly, here in Australia, we call an area - within a yacht club, in which you moor your boat - a pen.

A slip is where we would take a boat out of the water - hence 'slipway' and a dock - would usually be when tying up to a substantial jetty or wharf.

Amazingly, we also call a 'yacht' over here, a vessel that only uses sail, as opposed to your 'motor yacht', you also say boyee for a buoy, where we say boy!

Then again - you say to may toe and we say tom mart oh ---

With regard to pen fees, there has been quite a few new pens created along the river, with another huge marina up the coast, coming on line soon. So, very competitive. Our infrastructure is not the flashest as we lost a considerable amount of money doing research for a floating attenuator - (Sea wall) to brake the swell which comes up the river from the south west.

Through good management, we have got back on our feet, but it has taken nearly six years. Our club house is 'tired' so we don't really attract the landed gentry or nouveau riche, which is great, as we all enjoy a beer together - well did - before old Covid - 19 entered our domain.

Thanks for the explanation on GST, yes they have re done my charge - and I am happy.

Another thing of interest between our two countries, bought a bottle of scotch in Seattle when over there getting the boat and thought that is cheap, but when I got the final price asked him to recheck his calculation to find out alcohol has a state tax and then the nation wants their piece of the action too - so that is put on top ---

Death and taxes - two things we can't avoid!

Cheers

Gbmacca
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Old 15-04-2020, 08:51   #5
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Re: GSt (General Sales tax) on pens

Best way to avoid the tax on that bottle of scotch is to finish it off before you get home.
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Old 15-04-2020, 12:10   #6
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Re: GSt (General Sales tax) on pens

Just as a thought
$6930 after gst
6000+5%=6300+gst 630=6930
Quote:
Originally Posted by gbmacca View Post
Hi

Just got my new pen fees and note that the 5% increase for 2020 has been done on last years as follows (Rounded off) 2019 $6000 + Gst 10% = $6600.
This years $6,600 x 5% = $330 = $6930 x GST 10% + 693.00 = $7623.
Shouldn't it be simply $6000 x 5% = %6300 x GST 10% = $6030.
Plus -- why do we pay GST (Federal tax) on a pen when you pay no GST tax on a property
Gbmacca
Perth Australia
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Old 15-04-2020, 18:35   #7
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Re: GSt (General Sales tax) on pens

Hi Nico

You are right - as I am always being told - 're read your messages before you send!'

$6930 is correct.

Cheers

Gbmacca
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Old 15-04-2020, 23:31   #8
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Re: GSt (General Sales tax) on pens

Just being a tad picky here, but.... GST stands for "Goods and Services Tax"!
Roger
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Old 16-04-2020, 00:20   #9
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Re: GSt (General Sales tax) on pens

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Originally Posted by Djarraluda View Post
Just being a tad picky here, but.... GST stands for "Goods and Services Tax"!
Roger
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Old 16-04-2020, 00:21   #10
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Re: GSt (General Sales tax) on pens

What most Australians do not know - there were taxes in place before GST - IE a nominal sales tax on most expendable items - not food or services but items such as sunglasses 15% and jewelry 32.5%, plus we had import tariffs - supposedly to protect our manufacturing - but we couldn't save ourselves from the unions.
I used to clear samples of imported fashion items and clothing and found, if a jacket had a hood curled up at the neck - it was classified as a 'protective' item - so had a lower import duty.

tricks of the trade

All very interesting

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Old 16-04-2020, 00:23   #11
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Re: GSt (General Sales tax) on pens

GST - if you complain the government response is --- Get Stuffed Too!
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