Australia Post has publicly committed to passing on the benefits of the New Tax System changes to Australian consumers and businesses, Australian Competition and Consumer Commission Chairman, Professor Allan Fels, announced today.
"The price of a standard 45c letter will not rise. Savings to Australia Post customers will be around $92 million in the first year of the New Tax System.
"The price of a standard 45c letter will not rise despite Australia Post paying the Goods and services Tax. The cost of such a stamp, to business, will actually fall by more than 4c. This is as a result of the New Tax System input tax credit system. Under the input tax credit system, businesses pay9ing GST get a credit for the GST which has already been paid on inputs they buy. When they buy a stamp for 45c they get more than 4c back because the price includes a 10 per cent GST. This is one of the many examples of cost savings for businesses under the New Tax System.
"Australia Post has indicated that the price rise of a typical 'basket' of services for a family will may be as low as 1.8%.
"Australia Post has signed a Public Compliance Commitment that the ACCC will put on its public register.
"The commitment states that Australia Post will pass on the benefits of the New Tax System changes to Australian consumers and businesses.
"The ACCC welcomes the addition of this information to the marketplace at this time.
"Businesses are now better able to calculate their own costs savings, and to pass these on to consumers", Professor Fels said.
"To further assist in this pricing area the ACCC will shortly release its 'Pricing Kit for Small Business'. The kit will contain information and computer applications to assist small business to identify their savings from the New Tax System and adjust their prices.
"The ACCC is continuing to finalise Public Compliance Commitments with a significant number of Australia's largest companies including banks, petrol companies and major retailers and manufacturers.
"The ACCC believes companies are recognising the benefits of discussing their New Tax System pricing arrangements with the ACCC. They can benefit from the assurance that their repricing methodology is consistent with the ACCC's Pricing Guidelines", Professor Fels said.