Tax the key to funding choices

摘要

A little over 12 months ago, Australian business was introduced to the goods and services tax. As a consequence, everyone-from large corporations to th sole trader-had to make some major adjustments to the structure of their businesses to deal with the taxation ramifications that they would henceforth face on a three monthly basis.One of the biggest questions facing businesses was how to deal with borrowing money. Whether they were simply buying a car or replacing a large piece of machinery, business owners now had to stop and think, "How do I do this and get the taxation benefits that are available to me?"Prior to the GST, most businesses simply put their equipment o either a hire purchase or finance lease contract and thought nothing more of it. Nowadays, GST plays a major part in this decision-making process.