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New package helps Councils with GST complexities*

"Councils must prepare for the GST now or find themselves in an administrative and financial nightmare," said Gadens Accounting Director Pat McCarthy at the launch of a new national package designed to assist Councils to cope with the new tax.

Gadens Lawyers and Gadens Accounting have drawn upon their resources to form a team of GST specialists. "Councils, like any service organisation, face huge problems with the new and complex tax system," said Pat McCarthy. "They are particularly vulnerable and Council staff need to understand the key principles of the GST. They must prepare for the new legislation as action taken now will have a significant impact on the amount of GST they pay."

Commercial services provided by Councils, such as swimming pools and renting community halls and the sale of goods, will be subject to the Goods and Services tax. However Council rates and domestic waste charges are to be excluded.

"As the implementation of the GST draws closer, Council staff need to understand the way transitional provisions will impact on the contracts Council has or will enter into in the next few months," Pat McCarthy said. "These contracts include waste, recycling, office equipment, service agreements and property rental."

The Gadens' GST team has compiled a GST package specifically designed for Councils in recognition of the need for expert advice about the forthcoming legislation. Divided into three stages, the package will provide Councils with assistance in training, transitional provisions, preparing for the GST and the actual implementation of the new tax system.

Councils could experience a negative GST impact that could result in loss of income. These ramifications need to be identified as soon as possible so strategies can be developed to overcome the problems.

"Councils will need specialised GST advice to understand the many legal, accounting and administrative requirements that they will be faced with both prior to and after the commencement of GST in 1 July 2000," he said.

"We are aware that Councils are often concerned about the level of fees charged by lawyers and accountants. "We have systemised the planned delivery of GST services through all three stages and are able to offer a fixed price for each stage depending on the size of the Council."

Included in the package are workshops, newsletters on matters of critical relevance to Councils, visits to each Council to assist in contract review and a telephone hot line.

For further information contact Pat McCarthy, telephone (02) 9931 4999

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