"Every small and medium business and community sector organisation will receive a certificate with a face-value of $200 to help them adjust to the GST when they register for the GST before 31 May 2000," the Chairman of The New Tax System Advisory Board, Chris Jordan announced today.

"There’s more to this assistance program than just $200 per business. The true value for eligible organisations will be boosted because the GST Start-Up Assistance Office is negotiating significant discounts on GST-related products and services to complement the face value of the certificate.

"The GST Start-Up Assistance Office has received expressions of interest from suppliers of GST-related products and services and is in the process of registering suppliers prepared to offer an additional discount on GST-related products and services. The most generous to date being a discount in excess of 80 per cent, with other discounts averaging around 20 per cent".

The certificates are to be used to purchase GST-related products and services to help small and medium business and the community sector adjust to a GST environment.

"When you receive your certificate, you will also receive a helpful guide on how to redeem your certificate for products or services, plus a list of registered suppliers, but it’s up to you—you decide what you need purchase to help you get GST-ready," Mr Jordan said.

Certificates will start to hit mailboxes from mid January, for every small, medium business and community sector organisation that has registered early for the GST. Certificates can then be redeemed for GST-related products and services from a registered supplier.

"The big win for business is that the certificates are not assessable for tax—and that means you won’t pay tax on the certificate," Mr Jordan added.

"And let’s not forget that small and medium businesses with a turnover of less than $10 million will be able to immediately write-off the costs of capital items purchased in preparing for the GST if they are purchased prior to 1 July 2000."

Examples of GST-related products and services include: IT hardware, accounting software, financial and accounting services, legal advice, training services, IT consulting, bookkeeping services and integrated packages.

This funding comes from the $320 million covered by the Direct Assistance Program and is only one element of a comprehensive GST assistance program administered by the GST Start-Up Assistance Office. Other elements of the assistance program include practical, plain English GST business skills education materials and information.

The certificates will not be issued to educational bodies but Direct Assistance funding will top-up assistance for them through GST information programs delivered by education peak-bodies.

You can call the GST Business Assist Helpline on 13 30 88 for clarification on the certificates.