What is the effect of the GST on University Budgets?
University budgets will be determined and managed on a GST exclusive basis. This means that cost centres will generally not bear GST. This is because the University, like all businesses, is responsible for collecting GST for the government while being able to claim a refund on GST paid on non-salary purchases. As a result therefore only net receipts and expenditures are actually borne by the University. The Finance Unit will we be responsible for reconciling a GST clearing account and either remitting or receiving GST (as the case may be) on a monthly basis. It is likely that prices borne by cost centres will actually fall slightly as suppliers pass on lower costs as a result of the abolition of sales tax.
