What is the calculation formula involving Wholesales Tax (WST) deduction and addition of the Goods and Services Tax (GST)?
ATO Position WST was calculated at different rates according to the product or type of product. This tax was levied on the wholesale price. The GST will be charged on the sale value at the flat rate of 10%. The therefore the price of the product will generally be the value plus 10%. It is difficult to predict the exact impact this will have on prices in general due to the differing rates that was applied under the WST regime and the contingencies of market forces. It is expected that prices of products previously subject to high amounts of WST will fall whereas prices of goods and services not previous subject to WST will rise.
