Observations from Australia;
27 January 2000

G'Day America, A letter to the editor yesterday, Adelaide Advertiser Newspaper, said; "The real millennium bug will take devastating effect on July 1, 2000 - Howard's Y2KGST."

The GST bit stands for 'Goods and Services Tax' - a new tax coming to visit us on July the first. This is not a new tax "system", but another tax over and above the levies and fees, rates and council taxes, State charges and Federal encumbrances like another loading on the Medicare levy. Its introduction is supposed to make our life a dream and wonderfully more equitable. Some business taxes will disappear too. GST is a new value-added tax of 10% on most goods and services that is called the Gouge and Suck Tax in Canada. It's supposedly erases the black cash economy. Does it really? Ask a Canadian.

Samela Harris, a guest newspaper columnist writes; "Don't feel inadequate or guilty because you don't have a handle on the GST. No one understands it. Well, John Howard says he understands it - because it's his baby. If he really understood it he would never have done it."

A country store at Kongorong caters to the basic needs of a rural lifestyle and some fishing villages. The other day I dropped in for refreshments and got rung up on an ancient cash register. I asked the proprietor, a friend, how he'll cope. Rolling of the eyes in a beseeching of angelic guidance he shrugged; "I have no money to get a proper GST friendly register, so might call it a day. Some of the food I have to tax. See that cooked chook there doesn't attract GST, but if I break it up into pieces the bloody tax applies. Milk is free but a milkshake cops it. Do you realize the dairy farmer has to charge 10% to the factory for bulk milk? No? Well it's true and right now that's above our recently deregulated dairy industry and these farmers taking less per litre." He doesn't get it. There are no cash registers that are GST adjusted as yet. They keep on changing the rules you see.

Ms Harris continues; "From all reports, the Tax Office is in disarray, understaffed and under siege. There are six months left to get it all organized. This is the millennium bug of the tax world. Masses of number crunching by behind-the-scenes experts."

The local Tourism Operators were invited to pay $20 to attend a seminar about GST. The gentlemen from Adelaide drove down, made an incomprehensible talk, mumbled answers to very sharp questions, failed to make any sense and eventually admitted they were totally confused as well; and then they promptly drove back home. We lodged a sharp rebuke to the State Tourism Authority via a 'quango-regional tourism office', and soon we'll have a free address by much wiser GST specialists. Unfortunately there are no GST specialists in Australia because the Federal politicians this week changed their mind on some things. It's habitual.

More of Ms Harris; "Of course we are not going to be better off with GST. There is no such thing as better off when governments are looking for money. It'd fairy story stuff told to a malleable public by government who want to get their own way."

But governments never have enough. They just paid themselves a 10% wage rise and in South Australia we have an un-funded super-annuation scheme of about $5 Billion for public servants. Most people don't recall that one, and no price for guessing who'll pick up the tab. Levies aren't taxes we're told.

Ms Harris notes; "There are fantastic employment opportunities for bookkeepers and accountants. Come to think of it, the computer world, both hardware and software, is in for a bit of a boom, too. Lots of small businesses will feel the need to have electronic systems to help them to keep records and sort out what is coming off and going on and getting credits."

Things seems brighter today and the Cuban boy didn't get any coverage, but all my business fax transmission reports show 1900.

Regards from Down Under

-- Pieter (zaadz@icisp.net.au), January 26, 2000

Answers

To finish my observation correctly;

The point of the story is that Y2K is a passing infatuation as Federal, State and provincial issues blur the panorama in distant Down Under. Chaos holds sway on a playing field that's global. On the edge of the world looking out we see it ironically. The differences are stark. The earlier poster on biosphere systems is so valid.

Today our government announced a slashing of public library funding in the provinces. I was reading about it in the paper while listening to an ABC news broadcast from Chechnya. They were interviewing a teacher of refugee children attending class in the freezing winter. These kids were learning English in a tent. Such is life.

Regards from OZ

-- Pieter (zaadz@icisp.net.au), January 27, 2000.

Thanks, quite interesting. Keep us posted here:) I wonder if any industries would have to be nationalized to cope with this tax? Seems like the bad set-up has the private sector screwed. Wonder if the feds will "rush to the rescue"?

-- Hokie (Hokie_@hotmail.com), January 27, 2000.

In Canada - where our present Prime Minister lied & was elected on a platform of "I will not bring in the GST" - we have it as part of the huge tax liability for which Canada is reknown (so we can have our FREE medicare) - riiight.

The thing which is not taxed is regular foodstuffs, excepting snacks, & more than 6 of any baked goods (eg donuts), so that does leave a whole area which is tax free. In our province, Alberta, there is no sales tax either, so it is cheaper to live here.

At least the polic officers don't have to pay GST on their donuts as they always need more than 6!

-- Laurane (familyties@rttinc.com), January 27, 2000.

GST OVERVIEW LINK

Sorry, I forgot the article link when posting yesterday. (follow only if you're not confused already...)

Regards from OZ

-- Pieter (zaadz@icisp.net.au), January 27, 2000.