year 8 maths

252 Chapter 4 Fractions, decimals, percentages and financial mathematics
13 The cost of a lounge suite is $990 and includes $90 in GST. Find 10% of $990 and explain why it
is more than the GST included in the price.
14 Explain why adding 10% GST and then applying a 10% discount does not give you the pre-GST
price.
15 Other countries around the world also have a GST. In Canada the GST is 5% , in New Zealand it is
15% and in Singapore it is 7% .
Explain how you could find the pre-GST price on items sold in each of these countries.
ENRICHMENT
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16
GST and the manufacturing process
The final consumer of the product pays GST. Consider the following.
A fabric merchant sells fabric at $66 (including the 10% GST) to a dressmaker. The merchant makes
$60 on the sale and passes the $6 GST onto the Australian Tax Office (ATO).
A dressmaker uses the fabric and sells the product onto a retail store for $143 (this includes the $13
GST). As the dressmaker has already paid $6 in GST when they bought the fabric, they have a GST
tax credit of $6 and they pass on the $7 to the ATO.
The retailer sells the dress for $220 , including $20 GST. As the retailer has already paid $13 in GST to
the dressmaker, they are required to forward the extra $7 to the ATO.
The consumer who buys the dress bears the $20 GST included in the price.
16 Copy and complete the following.
Raw material $110 (includes the 10% GST)
GST on sale = ________
GST credit = $0
Net GST to pay = ________
Production stage $440 (includes the 10% GST)
GST on sale = ________
GST credit = _________
Net GST to pay = ________
Distribution stage $572 (includes the 10% GST)
GST on sale = ________
GST credit = _________
Net GST to pay = ________
Retail stage $943.80 (includes the 10% GST)
GST on sale = ________
GST credit = _________
Net GST to pay = ________
GST paid by the final consumer = ______________
Cambridge Maths NSW
Stage 4 Year 8 Second edition
ISBN 978-1-108-46627-1 © Palmer et al. 2018
Cambridge University Press
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