The Office of Hearing Services specifies mandatory amounts
for Item fees and tax. Unfortunately, this system is a nightmare for OHS service
providers, because the tax amounts are (a) calculated on a deemed taxable
service component and (b) rounded out. The consequence is that the effective
rate of GST for OHS services is not 10%, or even 5%, for many items.
In fact the effective GST rate varies between 0.13928% and the full 10% (I promise, I am not making this up!!). Click here to view a table of the effective tax rates for 2005-6 and 2004-5. It is necessary to calculate the rate to five decimal places in order to be sure a calculated tax amount in MYOB or QuickBooks is correct.
To cope with this absurdity, Service Providers are obliged to recalculate tax rates for their financial software each year. This is extremely annoying, but HearAid 5.0 can ease the pain by performing the calculations for you, once you have updated the fee schedule. To do this, go into Database|Query and copy the following text into the SQL editor:
CAST(100*CAST(ITEM_TAX AS FLOAT)/CAST(ITEM_AMOUNT AS FLOAT) AS NUMERIC(8,5)) NEW_EFFECTIVE_TAX_RATE,
CAST(100*CAST(OLD_ITEM_TAX AS FLOAT)/CAST(OLD_ITEM_AMOUNT AS FLOAT) AS NUMERIC(8,5)) OLD_EFFECTIVE_TAX_RATE
ITEM_TAX > 0
and click the "Execute SQL" button on the toolbar. The query will produce a tax table for you, which can be exported to a variety of file formats if required
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