As you will be aware, in June
1999, the Federal Parliament passed legislation introducing a Goods and
Services Tax (GST) a part of a New Tax System which takes effect from 1 July
2000.
Services such as Internet services will be subject to a GST of 10% when
supplied on or after 1 July 2000 to customers (for consumption) in
Australia.
The Introduction of the GST is a complex issue which will involve a
number of changes to our business. As new information comes to light, we
will inform our users.
Cosmos and Mikka Internet services has conducted a review on the impact
of GST and is still seeking professional advice on GST classification for
the various services and products we offer.
Cosmos and Mikka Internet services are aware of the requirements on
business outlined by The Australian Competition and Consumer Commission
("ACCC") and we will pass on any savings as a result of the tax
changes introduced by GST.
Impact on Prices
Althought we expect some savings as a result of the GST introduction, The
level of Wholesale Sales Tax (WST) cost reductions is expected to be
minimal. Any expected potential savings to Cosmos and Mikka Internet
services from our suppliers will be negligible.
We therefore do not anticipate that there will be any significant savings
gained from the implementation of the GST which can be passed on to our
customers. However, if savings do eventuate from our suppliers, we will pass
on these savings and price our products accordingly.
We thank you for your support.
The team at Cosmos and Mikka Internet.