Hip-pocket
The Age
Monday April 17, 2000
The following tables, prepared for Money & Investment by the Australian Society of CPAs, are a rough guide only but indicate some of the price variations we are likely to see from July 1 under the GST.
"There is absolutely no doubt there will be price movements once the GST kicks in on July 1. However, it is impossible to determine exact prices post July 1 because every business has a different cost structure and pricing policy," says David Boydell, ASCPA taxation spokesperson.
"In any event, any change should not be considered in isolation. The GST is a part of a much bigger tax package, which offers new bene ts to offset increases.
"You shouldn't be laboring over the cost of your Vegemite but instead, looking at the entire package. There are both savings benefits and cost increases."
SINGLE PARENT
Current price July 1 price Change
Baby food, 1 jar $0.80 $0.80 No change in
price if not considered a prepared meal
Nappies (36 pack) $15.00 $16.35 Up slightly
(almost 10%)
Baby clothes, jumpsuit $10.00 $10.90 Up slightly (almost 10%)
Cot $100 $109 Up (almost 10%)
Pram $150 $163 Up (almost 10%)
Washing powder, large box $7.00 $6.70 Down slightly
Formula, one tin $10.00 $10.00 No change
Creche, daily charge $40.00 $40.00 No change
Electricity, monthly charge $33.00 $35.60 Up slightly
(around 8% increase)
Gas, monthly charge $41.00 $44.00 Up slightly (around 8%)
MUM, DAD AND TWO KIDS
Current price July 1 price Change
Mortgage, monthly repayment $1500 $1500 Essentially no
change other than minor increases in associated charges (eg.
bank account keeping fees)
Stationwagon $15,000 $14,000 Down 6-8% over,
say, a six month period post July 1 compared to normal
pre-GST prices (ie. not compared to the
heavily discounted prices that currently
exist, immediately prior
to the GST)
Petrol, weekly $60.00 $60.00 No change
School fees, quarterly $800 $800 No change (some increase
in boarding school fees)
School uniform, for two $300 $328 Up (almost 10%)
Books, yearly $200 $219 Up (almost 10%)
Daily bus fees $2.60 $2.85 Up (almost 10%)
Dog/Cat food, per tin $1.20 $1.15 Slight price fall
(already subject to 22.5% WST)
Television $500 $475 Down (about 4-5%)
Family holiday
- caravan park, per night $35.00 $38.00 Up (almost 10%
short-term, less than 28 days, otherwise 4-5% increase on
long-term stays)
- amusement park, entry fees $50.00 $55.00 Up (almost 10%)
AGED SINGLE
Current price July 1 price Change
Local phone, per call 17.5 cents 17.5 cents No change
STD phone, 7pm-midnight $3.00 $3.30 Up (unclear, may go up by 10%)
Health care, per visit n/c n/c No change
Postage, standard stamp $0.45 $0.45 No change in standard stamp,
other postage up by 10%
YOUNG COUPLE
Current price July 1 price Change
Internet, monthly subscription $30.00 $33.00 Up (about 10%)
Computer, budget pentium $1500 $1425 Down (4-5%)
Gym membership, yearly $400 $435 Up (almost 10%)
Movie ticket $12.00 $13.00 Up (almost 10%)
Wine, average bottle $15.00 $15.30 Up slightly (2% increase
from bottle shops, restaurants 5-6%)
Foccacia, eaten in cafe $6.00 $6.60 Up (almost 10%)
Cup of coffee $2.50 $2.75 Up (almost 10%)
Restaurant dinners,
average for two, incl. wine $70.00 $76.50 Up (almost 10%)
STUDENT HOUSEHOLD
Current price July 1 price Change
Frozen dinners $6.00 $6.55 Up (almost 10%)
Hamburger, from local store $5.00 $5.45 Up (almost 10%)
Coke, one can $1.30 $1.25 Down (about 2-3% price
fall in supermarket, small increase in restaurants)
Beer, 24 can carton $30.00 $30.60 Up (2% increase in
bottleshops, 7% increase in pubs, restaurants etc)
Nightclub entry fee $10.00 $11.00 Up (almost 10%,
rounding up/price pointing could restrain prices in short term
but would imply larger
increase later)
Taxis, 20 min trip $20.00 $21.60 Up (possible
7-8% increase, but subject to some uncertainties due to regulation
and government policy on
LPG prices)
All tables are only rough guides to show the impact of GST. They are estimates
only. Prices will vary depending up the structure of the business and its
pricing structure
Source: ASCPAs
© 2000 The Age