CPI AND THE GST
The ABS will not be compiling a "GST-free" CPI. As the CPI measures changes in prices actually paid by Australian households, prices used in the CPI have historically included commodity taxes such as excise duty, wholesale sales tax and stamp duty. Following the introduction of the GST, which replaces most of these existing indirect taxes, the CPI will continue to reflect changes in final transaction prices actually paid by households. This means that the CPI will be inclusive of the GST. Not only will the approach be consistent with the current treatment to include indirect taxes in the CPI but it will also be consistent with the compilation of CPIs in other countries where a GST, or similar tax applies. For further information contact Keith Woolford on (02) 6252 6673 or email keith.woolford@abs.gov.au
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