Goods and Services Tax in Australia - GST Solutions giving australian gst and tax solutions Direct Tax A direct tax is levied directly on entities or individuals.
Income tax is an example of direct tax.
Indirect Tax An Indirect tax is a tax that is not levied directly on individuals or entities but rather on goods or services. It is passed down the chain to consumers who ultimately bear the tax, while business gets input credits or refunds of GST paid. Under the GST goods and services will be either taxable, input taxed or GST-free. Existing wholesale sales taxes are levied on a narrow range of goods only, and do not apply to services, at rates ranging between 12 and 45 per cent. WST is levied when wholesalers sells their goods, and are hidden in the price of goods at the checkout.