By Ben Collins and Ben WebsterThe National Treasury has announced that it will announce a cut to the GST rate of 25 per cent on the first year of a government.
This will mean that the Government will only pay 25 per a cent GST on all items imported, which would mean that most goods and services will not be subject to the higher GST rate.
The announcement is expected to come as early as today, with the announcement of a further cut to this rate in 2019.
A number of other factors, including the fact that the GST is a revenue-raising measure, will have an impact on how this cut is decided.
While the initial cut to 25 percents was announced by the Treasurer last week, there is some confusion over when it will be made.
If you were to ask the Australian Taxation Office (ATO) how they expect the GST to be cut in 2019, they would suggest that a further 15 per cent cut will be announced in 2019 and that a 20 per cent reduction will be cut to 19 per cent by 2021.
However, the ATO has said that it expects the cut to be made in the early part of next year, and that the cut is to be “determined by a range of factors”.
So how much will this cut cost?
The first cut is expected not to be as large as the 25 percent cut in the first cut in 2017, because the GST has been increased to a level which is a much higher amount than the average Australian family pays.
For example, the average family pays around $8,000 in GST each year.
It would cost about $150 billion to make the first 25 perCent cut in 2018, but that would be $400 billion in GST, or around 5 per cent of total Australian household income.
So in a year with a cut of 10 per cent, a family could be paying around $15,000 a year in GST.
But the ATP has said this is a range, and the cut will vary depending on a number of factors, and how much money is spent.
In a typical year, the cut in income will be between 1.5 per cent and 3 per cent.
According to the Government’s own estimates, a 15 percent GST cut would mean a reduction in income of $4,000 per household.
And if we assume that households spend $15 billion in 2018 and the average household spend $30,000, a household could be losing around $3,600 a year.
So the cut could actually be closer to $6,600 per household, and a family would be able to spend less than $3 million.
Why did the Government make the cut?
A big part of the problem for many people is the fact they are paying a higher rate of tax.
Currently, Australians pay GST on the value of the goods and the services they buy, which is set at 25 per cents on all goods and 10 per cents for services.
At the same time, the Government pays a lot of indirect taxes on the cost of goods and service.
Those indirect taxes are collected by the GSTF, which are used to fund the Federal Government’s budget.
Under the GST, the GST tax is split between the two.
When the GST goes up, the indirect tax rate goes down, which means that consumers and businesses pay more in taxes.
Many people also worry that the lower rate will mean less income tax.
The Government is currently reviewing the way the GST works to see if it should be changed.
Is this the end of the tax cuts?
There are still a number more cuts to be announced, including: