As you will be aware, in June 1999, the Federal Parliament passed legislation introducing a Goods and Services Tax (GST) a part of a New Tax System which takes effect from 1 July 2000.

Services such as Internet services will be subject to a GST of 10% when supplied on or after 1 July 2000 to customers (for consumption) in Australia.

The Introduction of the GST is a complex issue which will involve a number of changes to our business. As new information comes to light, we will inform our users.

Mikka Internet has conducted a review on the impact of GST and is still seeking professional advice on GST classification for the various services and products we offer.

Mikka is aware of the requirements on business outlined by The Australian Competition and Consumer Commission ("ACCC") and we will pass on any savings as a result of the tax changes introduced by GST.

Impact on Prices

Althought we expect some savings as a result of the GST introduction, The level of Wholesale Sales Tax (WST) cost reductions is expected to be minimal. Any expected potential savings to Mikka Internet from our suppliers will be negligible.

We therefore do not anticipate that there will be any significant savings gained from the implementation of the GST which can be passed on to our customers. However, if savings do eventuate from our suppliers, we will pass on these savings and price our products accordingly.