With the introduction of the GST on 1 July 2000, the task faced by Local Councils, like all other Australian businesses, was to put in place systems and procedures that would accommodate the transition to the New Taxation System. Blacktown City Council developed a GST system within its existing financial management information system that features a real time online Business Activity Statement (BAS) containing every detail of their GST transactions.
The GST system developed by Council is designed to ensure that each operation involving debtors, creditors, and cash receipting, creates a GST transaction which directly links to a relevant box on the online BAS.
“Every transaction is identifiable, with full details being traceable via supporting reports and drill down online enquiries, which progressively collate and elevate to a single online summary page, developed to replicate the BAS format,” said Council’s General Manager, Ian Reynolds.
Part of the process to develop a suitable system that integrated with the Council’s existing financial information system was the establishment of a GST Steering Committee and GST Implementation Working Party.
“The job of the GST Steering Committee was to oversee the introduction of a reporting process that would satisfy Council’s internal needs as well as our compliance with the Australian Taxation Office,” Ian Reynolds said. “The Working Party was given practical responsibility for implementing the GST at Council.”
Council in partnership with its software developer, Civil Software Pty Ltd, combined resources for this project and developed what it considers to be comprehensive and simple GST systems.
“Transition to the New Taxation System was near faultless with only a minor impact on staff resources,” Ian Reynolds said.“No additional staff were required. Interactive staff training sessions were conducted for all staff exposed to the new reporting system, and all involved were delighted with the simplicity of the program’s operation and very confident about its accuracy.
The end result is that the system enables Council to lodge its BAS electronically by 10.00 am on the one day of each month.”
Ian Reynolds said that a recent GST review undertaken at Blacktown Council by PricewaterhouseCoopers found that the implementation of the GST by Council appears to have been comprehensive and thorough, and that staff responsible for the management of GST within the Council are very competent and tax aware.
“An extremely pleasing outcome,” he concluded.
For further information, contact Council’s Manager Corporate Finance, Stephen Dunshea, on (02) 9839 6460.
