Show Notes
Welcome back to The Account Rant.
In this episode, Patrick El Bitar and Michael Hirmiz debate one of the most frustrating parts of the Australian tax system, GST.
Should the GST threshold stay at $75,000, rise with inflation, move closer to $150,000, or be removed completely so every business registers from day one?
Michael argues that a $0 GST threshold would make the system simpler, because every ABN would be GST registered and everyone would know what to do with invoices, BAS and GST credits.
Patrick pushes back, arguing that forcing brand new businesses, side hustles and sole traders into GST from day one could create more compliance costs, more accountant fees and more confusion for people just trying to get started.
They also unpack why the GST threshold has barely moved in decades, how Australia compares to New Zealand, the UK and Singapore, why state taxes never really disappeared after GST was introduced, and how government always seems to find a new way to collect money.
The conversation also moves into council rates, tolls, levies, ATO penalties, bracket creep, combined family income, and whether Australia’s tax system is punishing workers, families and small business owners.
If you run a business, have a side hustle, work on an ABN, or just feel like tax keeps coming from every direction, this episode is for you.
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The Account Rant is a business and tax podcast by Latitude Accountants, giving real conversations for Australian business owners, professionals and entrepreneurs.
This content is general information only and does not constitute financial, legal or tax advice. Please speak with a qualified adviser about your own circumstances.
Chapters 00:00 Should the GST threshold exist? 00:39 Should every ABN register for GST? 01:25 Why Patrick thinks the GST threshold is too low 01:37 The $75K GST threshold has not moved 01:54 Should the threshold be closer to $150K? 02:49 The compliance problem for new businesses 03:20 Could Xero and AI make GST easier? 04:18 Should business owners get better GST education? 05:17 Would a $0 GST threshold make the system simpler? 05:45 How Australia compares to other countries 06:26 Why $75K feels outdated today 07:17 Would GST from day one kill side hustles? 08:00 GST was meant to replace state taxes 09:40 The hidden taxes people forget about 10:12 Council rates, stamp duty, rego and tolls 11:21 Government levies and ATO penalties 12:29 Is the ATO creating new income streams? 13:35 Would changing GST just create another tax? 14:23 The lawn mowing GST example 15:00 Should GST rise if income tax drops? 15:45 Why $100K does not feel rich anymore 16:36 Should families be taxed together? 17:40 Final thoughts on Australia’s tax system
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