🇦🇺Australia

GST Non-Compliance on Mixed Design Supplies

1 verified sources

Definition

Design consultations involving mixed taxable furniture sales and potentially input-taxed advice require precise BAS lodgement; errors common in manual processes.

Key Findings

  • Financial Impact: AUD 5,500 minimum penalty per BAS lodgement failure (ATO administrative penalty)
  • Frequency: Quarterly BAS cycles
  • Root Cause: Manual classification of consultation fees vs product sales

Why This Matters

The Pitch: Furniture design firms risk AUD 5,500+ ATO fines per BAS error from manual GST tracking. Automation of invoicing ensures compliance.

Affected Stakeholders

Accountants, Finance Managers

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Unbilled Design Consultations

AUD 250 flat fee per consultation if no purchase over AUD 25,000[6]; AUD 29 consultation price at risk if no sale[7]

Lost Sales from Consultation Friction

2-5% revenue churn from lost deals due to slow manual processes (industry standard for consultation drop-off)

Staff Overtime in Peak Design Seasons

AUD 50-100 per hour overtime for design consultants (Australian award rates)

Bußgelder wegen Verstoß gegen australisches Verbraucherkreditrecht (NCCP/ASIC)

Logic‑based estimate: expected compliance risk cost of ~AUD 80,000–190,000 per year per mid‑size retailer, based on a likely ASIC‑style enforcement event of AUD 400,000–950,000 (penalty, remediation, and professional fees) every 5 years linked to non‑compliant consumer finance application processes.

Cost of Poor Quality

Quantified: AUD 5,000-20,000 per rework incident (industry standard 2-5% of order value for custom pieces averaging AUD 10,000)

Cost Overrun

Quantified: AUD 1,000-3,000 per custom order (5-10% overrun on materials/labor for complex specs)

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