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PUBLISHER’S LETTER
www.siliconchip.com.au
Publisher & Editor-in-Chief
Leo Simpson, B.Bus., FAICD
Production Manager
Greg Swain, B.Sc.(Hons.)
Technical Staff
John Clarke, B.E.(Elec.)
Peter Smith
Ross Tester
Rick Walters
Reader Services
Ann Jenkinson
Advertising Enquiries
Rick Winkler
Phone (02) 9979 5644
Fax (02) 9979 6503
Mobile: 0414 34 6669
Regular Contributors
Brendan Akhurst
Louis Challis
Rodney Champness
Garry Cratt, VK2YBX
Julian Edgar, Dip.T.(Sec.), B.Ed
Mike Sheriff, B.Sc, VK2YFK
Philip Watson, MIREE, VK2ZPW
Bob Young
SILICON CHIP is published 12 times
a year by Silicon Chip Publications
Pty Ltd. ACN 003 205 490. ABN 49
003 205 490 All material copyright
©. No part of this publication may
be reproduced without the written
consent of the publisher.
GST and price changes
On July 1st, Australia will change its tax
system to include GST on virtually all goods
and services, with some exceptions for food
and financial services.
For SILICON CHIP this will have the direct
consequence of a 10% rise in cover price.
Despite Government publicity to the contrary,
there will be no offsetting reductions in our
costs since under the old tax system, newspapers, books and magazines were exempt
from sales tax. I hope you will continue to
support SILICON CHIP in spite of the price
rise to come in July.
My thanks to our subscribers who have already had to bear the GST increase. Indeed, because the GST was back-dated
to December 1998, we have had a GST liability on any subscription taken
out since that time which ran past July 2000 (ie, 2-year subscriptions). That
was a bit of a shock to us since there was no way to allow for it.
By the way, the July 2000 issue should go on sale late in June, so if you
purchase it on or before the 30th June, you will avoid the GST for that issue
at least (hint, hint!).
As far as electronic equipment and other products are concerned, some will
be reduced in price and some will rise. That’s another point the Government
hasn’t been keen to talk about (perhaps they don’t know?). Whether or not a
product’s price rises or falls depends on the retailer’s normal profit margin.
If the margin is low, as in many consumer appliances, the price will
probably drop a little, because the rate of GST is less than the rate of the
old sales tax. But if the profit margin is higher, the retail price after GST is
applied may well be higher.
In fact, it seems to me that many retailers could legally add more than
10% to their prices, especially if they are for imported goods, because of
the big fall in the Australian dollar over the last 12 months. Unfortunately
though, some retailers and businesses will feel constrained against this and
they may well suffer in the long run. I hope not.
Printing: Hannanprint, Dubbo,
NSW.
It’s not all black though; many businesses will benefit from the introduction
of GST since it will give rise to a GST credit on inputs. And all taxpayers
will benefit to some extent from the reductions in income tax.
Distribution: Network Distribution
Company.
On the face of it though, if there is a product you want to buy and you
suspect it might be dearer after July 1st, buy it now.
Subscription rates: $69.50 per
year in Australia. For overseas
rates, see the subscription page in
this issue.
Once again, I hope you will continue to support SILICON CHIP as we strive
to maintain a big variety of projects and present them with as much detail
as possible.
Editorial & advertising offices:
Unit 8, 101 Darley St, Mona Vale,
NSW 2103. Postal address: PO Box
139, Collaroy Beach, NSW 2097.
Phone (02) 9979 5644.
Fax (02) 9979 6503.
E-mail: silchip<at>siliconchip.com.au
ISSN 1030-2662
* Recommended and maximum price only.
Leo Simpson
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