Craig Whatman, a partner in the mid-tier firm, said amendments to the provisions of the GST will have wide-ranging implications for businesses.
“Any changes to the GST rate or base will necessarily impact SMEs’ accounting systems and processes, as well as raising questions about who bears the cost of any GST increase in the case of long-term contracts,” he said.
“In the event that the government does forge ahead with GST reform, ideally we’d be looking at a transition period of 12 months for any changes to the GST,” Mr Whatman said.
“Any transition period of less than six months will simply not allow enough time for SMEs to adapt their systems and contracts, creating confusion for both suppliers and customers.”
Mr Whatman said the government has flagged that it must expand its revenue base, and the GST represents an obvious opportunity to do so, but any changes to the tax must be carefully implemented.